Regulatory Alerts2018-11-29
Added · Updated
INSTRUCTION N°35 (Modification 1)
This Instruction determines the conditions for access to and exercise of leasing activity for Credit Institutions and Microfinance Institutions, and establishes prudential standards for leasing companies. Leasing companies must obtain Central Bank approval, possess a minimum share capital of USD 5,000,000, and are prohibited from receiving funds from the public. They must maintain a solvency ratio of at least 10% and limit credits or guarantees to related persons and foreign assets to a maximum of 10% of their regulatory own funds. Approved banks must notify the Central Bank to engage in leasing, while other Credit Institutions and Microfinance Institutions require express authorization.