Regulatory Alerts2011-06-01 | CD-SIBOIF-650-2-OCT20-2010Added · Updated
Norm on Deposit and Investment Limits
The Superintendence of Banks and Other Financial Institutions establishes requirements and limits for deposits and investments by financial institutions in Nicaragua. The regulation defines permitted domestic and foreign instruments, sets concentration limits based on capital adequacy (ranging from 10% to 50% depending on the asset type and counterparty rating), and mandates financial analysis or reliance on recognized credit ratings. It also prohibits encumbrances on deposits and investments, with specific exceptions for financing and contingent operations.