Regulatory Alerts2025-07-16 | CDMF-XXV-1-25Norm on Reform to Article 4 of the Capital Adequacy Standard
The Monetary and Financial Board issued Resolution CDMF-XXV-1-25 to reform Article 4 of the Capital Adequacy Standard, aligning secondary capital limits with Law No. 1237. The resolution defines eligible secondary capital components, including specific hybrid instruments and subordinated debt, while imposing strict eligibility criteria and amortization schedules. It also establishes that generic provisions are capped at 1.25% of risk-weighted assets and that secondary capital cannot exceed one-third of primary capital.
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