Regulatory Alerts2024-06-05 | NRP-65Technical Standards on Prudential and Accounting Obligations of Subsidiaries of Banks, Investment Banks, or Exclusive Purpose Holding Companies
The Central Bank of El Salvador issued Technical Standards NRP-65 to regulate the prudential and accounting obligations of subsidiaries of banks, investment banks, and exclusive purpose holding companies. The rules mandate specific external and internal audit requirements, capital adequacy calculations, credit limits, and strict financial reporting timelines for both domestic and foreign subsidiaries. Additionally, the standards govern accounting classifications, prohibit cross-shareholdings, restrict joint commercial activities, and authorize the transfer of subsidiary shares only with prior regulatory approval.
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