Norm for Establishing Criteria for Qualifying Financial Institutions as Non-Bank Financial Institutions

Resolution No. CD-SIBOIF-550-2-SEP3-2008
Date: September 3, 2008

NORM FOR THE ESTABLISHMENT OF CRITERIA FOR THE QUALIFICATION OF FINANCIAL INSTITUTIONS AS NON-BANK FINANCIAL INSTITUTIONS

The Board of Directors of the Superintendence of Banks and Other Financial Institutions,

CONSIDERING

I

That Article 131 of Law 561, the General Law of Banks, Non-Bank Financial Institutions and Financial Groups (General Banking Law), establishes that non-bank financial institutions are those institutions that provide "brokerage intermediation services or financial services with public resources";

II

That said Article 131 also states that the Superintendent of Banks may qualify as a non-bank financial institution other financial institutions not provided for in Title IV of the General Banking Law, in accordance with the criteria contained in general regulations issued by the Board of Directors of the Superintendence of Banks and Other Financial Institutions.

In exercise of its powers,

HAS ISSUED

The following:

NORM FOR THE ESTABLISHMENT OF CRITERIA FOR THE QUALIFICATION OF FINANCIAL INSTITUTIONS AS NON-BANK FINANCIAL INSTITUTIONS

Resolution No. CD-SIBOIF-550-2-SEP3-2008

CHAPTER I

CONCEPTS AND OBJECTIVE

Art. 1. Concepts.- For the purposes of this regulation, the terms indicated in this article, both in uppercase and lowercase, singular or plural, shall have the following meanings:

a. General Banking Law: Law 561, General Law of Banks, Non-Bank Financial Institutions and Financial Groups, published in La Gaceta, Official Diary, number 232, of November 30, 2005.

b. Superintendent: Superintendent of Banks and Other Financial Institutions.

c. Superintendence: Superintendence of Banks and Other Financial Institutions.

Art. 2. Objective.- This regulation aims to establish the criteria for the Superintendent to qualify as a non-bank financial institution other entities of a financial nature, so that banks and other institutions expressly recognized as non-bank financial institutions by Title IV of the General Banking Law may, invest in capital instruments of the institutions qualified under the provisions of this regulation in accordance with the provisions of Articles 57, numeral 1 and 142 of the aforementioned Law.

CHAPTER II

CRITERIA AND VALIDITY

Art. 3. Qualification Criteria.- The Superintendent may qualify as a non-bank financial institution, an entity other than those expressly recognized by Title IV of the General Banking Law, in cases where it falls within each and every one of the following conditions:

a. It is a legal person whose sole purpose is the administration of funds containing a set of homogeneous loans, credits or other assets, capable of generating a continuous flow of liquid resources and authorized to issue, backed by such assets, new securities that will be placed prior to credit rating; having said loans, credits or assets been generated and transferred unconditionally by other entities to said fund.

b. Said legal person is subject to the supervision of the Superintendence, under the following terms:

1. Requires prior authorization for its constitution;
2. Is subject to prudential regulation in the development of its operations;
3. Requires the participation of the Superintendence for its closure or liquidation.

Art. 4. Validity.- This regulation shall enter into force upon its publication in La Gaceta, Official Diary.

(f) Antenor Rosales B. (f) V. Urcuyo V (f) Gabriel Pasos Lacayo (f) A. Cuadra García (f) Jessica M H. Ad Hoc Secretary.

URIEL CERNA BARQUERO
Secretary of the SIBOIF Board of Directors