Regulatory Alerts2024-07-19
Added · Updated
Financial Intermediation Institutions - Regulatory Adjustment on Capital Requirements for Credit Risk
The Superintendency of Financial Services replaced Articles 160 and 160.1 of the Financial Stability and Solvency Book to establish capital requirements for credit risk using the standard method. The regulation sets base capital requirements at 8% for most institutions, 12% for retail banks and cooperatives, and 15% for investment banks, while defining specific risk weight tables for exposures to governments, public enterprises, multilateral organizations, financial institutions, and companies. It introduces detailed criteria for retail exposures, real estate-secured exposures based on loan-to-value ratios, and a 1.5x multiplier for foreign currency exposures to non-financial entities, alongside rules for contingent risks and credit ratings.