Norm on the Instruction for Preparing the Sectorization Report

Norm on the Instruction for Preparing the Sectorization Report Superintendence of Banks and Other Financial Institutions – Nicaragua 1

NORM ON THE INSTRUCTION FOR THE PREPARATION OF THE SECTORIZATION REPORT (CD-SIBOIF-213-2-JUL31-2002)

Article 1. The Instruction for Preparing the Sectorization Report, effective since December 2001, is adopted with the status of a norm. Its application by all banks and financial institutions, as well as deposit-taking entities, is mandatory and may not be modified without the express authorization of the Superintendence.

Article 2. The copies of the Instruction delivered to supervised institutions, for legal purposes, constitute a single identity with the copy held by this Superintendence, and must be considered an integral part of this Resolution.

Article 3. The Instruction comprises three parts: a) Concepts used in Sectorization b) Classification of Institutional Units c) Annexes:

• Methodology for preparing the report
• Guide for the sectorization of credit, deposits, and investments
• Format I-A; Format I-B; Format II
• Sectorization of institutional units in Nicaragua

Article 4. Banks and financial institutions are obligated to submit a sectorization report to the Superintendence on a monthly basis using Formats I-A and I-B, and another report on a weekly basis using Format II. The monthly report must be submitted together with the monthly financial statements, while the weekly report must be submitted by the next business day following the reported week.

Article 5. Banks and financial institutions must proceed to prepare the complete sectorization coding of all and each of their clients. This consists of assigning a numerical code according to the sector corresponding to each economic agent that currently maintains a contractual relationship with the financial institution. This code will be stored by the computer systems of the financial institutions, and the preparation of the sectorization reports must be closely related to such coding so that there is no possibility whatsoever of excluding any economic agent from the sectorization report.

A new deadline is granted (in Circular DS-IB-1023-12-2001/NSC of December 13, 2001, a deadline until March 2002 had been given) until September 30 of the current year for banks and financial institutions to conclude the construction of the coding with everything systematized computationally.

Article 6. Banks and financial institutions that do not comply in time and form with the provisions adopted herein will be subject to sanctions and fines in accordance with the General Law of Banks, Non-Banking Financial Institutions, and Financial Groups. Systematic errors in the data of the reports are included as non-compliance.

Article 7. This Norm will enter into force upon its notification, without prejudice to its publication in La Gaceta, the Official Gazette of the Republic.