Regulatory Alerts2017-08-08 | CD SIBOIF-1009-1-JUL31-2017Added · Updated
Norm on Reform of Article 6 of the Capital Adequacy Standard
The Superintendence of Banks and Other Financial Institutions of Nicaragua reformed Article 6 of the Capital Adequacy Standard to establish risk weightings for credit assets and authorize updates to the list of recognized credit rating agencies. The regulation assigns specific risk weightings ranging from 0% to 150% based on ratings from agencies such as Fitch, Moody's, and Standard & Poor's, while mandating the use of the lowest rating when multiple ratings are available. It also sets distinct weightings for foreign currency exposures, including a 125% rate for consumer credits and a 60% rate for mortgage loans, with a $32,000 exception for housing loans. This resolution entered into force upon notification on July 31, 2017.