Regulatory Alerts2018-12-04 | CD-SIBOIF-1087-1-DIC4-2018Added · Updated
Norm on Reform of Articles 4, 5, 6 and 7 of the Capital Adequacy Norm
The Superintendence of Banks and Other Financial Institutions amends Articles 4, 5, 6, and 7 of the Capital Adequacy Norm to align with the IFRS-based Accounting Framework. The resolution excludes positive balances from Net Other Comprehensive Income and Transition Adjustments from regulatory capital, while requiring the deduction of negative balances. It establishes specific risk weightings for foreign exchange exposures, defines secondary capital components including a 1.25% limit on voluntary generic provisions, and mandates the deferral of IFRS 1 opening balance adjustments over 60 months. These provisions apply to banks and financial institutions starting January 1, 2019.
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