Regulatory Alerts2017-12-04 | CD-SIBOIF-1031-1-DIC4-2017Added · Updated
Norm Amending Articles 5, 14, 23, and 27 of the Credit Risk Management Standard
The Board of Directors of the Superintendence of Banks and Other Financial Institutions amended Articles 5, 14, 23, and 27 of the Credit Risk Management Standard to align with Law No. 965. The changes require financial institutions to classify single-family and multi-family social interest housing as mortgage credits, apply a 0% provision for these loans in Normal Risk category A, and extend the valuation periodicity for qualifying units from three to seven years. The regulation also updates the definition of microcredit to a US$10,000 limit and specifies appraisal requirements for standardized housing models.
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