Norm Reforming Article 12 of the Norm on Deposit and Investment Limits

RESOLUTION CDMF-VII-2-25
Dated March 5, 2025
NORM REFORMING ARTICLE 12 OF THE NORM ON DEPOSIT AND INVESTMENT LIMITS

The Monetary and Financial Board,

CONSIDERING

I
That by Resolution No. CD-SIBOIF-650-2-OCT20-2010, dated October 20, 2010, the "Norm on Deposit and Investment Limits" was approved, published in La Gaceta, Official Journal No. 2, on January 6, 2011.

II
That Article 156 of Law No. 1232 "Law on the Administration of the Monetary and Financial System" (hereinafter, Law No. 1232), published in La Gaceta, Official Journal No. 241, on December 30, 2024, establishes that "...all faculties, competencies, powers, attributions, and duties established in other laws, prior to the entry into force of this Law, attributed to the Board of Directors of the Central Bank and the Board of Directors of the Superintendence of Banks..." are transferred to the Monetary and Financial Board.

III
That Article 17, subsection C, numeral 9, of the aforementioned Law No. 1232, establishes that it is a faculty of the Monetary and Financial Board: "To approve norms related to the investments and deposits of institutions in the country and abroad."

IV
That it is necessary to reform Article 12 of the norm referred to in the first consideration of this resolution, in order to update the table of risk rating categories, adapting it to the methodological changes made by risk rating agencies.

In exercise of its faculties,

HAS ISSUED

The following,

NORM REFORMING ARTICLE 12 OF THE NORM ON DEPOSIT AND INVESTMENT LIMITS

FIRST: Article 12 of the "Norm on Deposit and Investment Limits" contained in Resolution No. CD-SIBOIF-650-2-OCT20-2010, dated October 20, 2010, published in La Gaceta, Official Journal No. 2, on January 6, 2011, and its amendments, is hereby reformed, which shall read as follows:

"Art. 12. Rating Parameters.- For the purpose of determining local or international ratings as well as sovereign risk, only the risk rating agencies and ranges established in the following table are considered:

Risk Rating Agency	Rating Categories
Issuer Obligations	Short-term Obligations
Fitch IBCA	Rating BBB- or higher

The Superintendent may update the aforementioned table in case of new authorized and registered risk rating agencies in the registry kept by the Superintendence for these purposes, according to the corresponding investment-grade ratings. Likewise, it may be updated when new internationally recognized risk rating agencies are determined, or in case these entities modify their risk rating nomenclature; which shall be reported to the Monetary and Financial Board prior to the notification made to financial institutions via circular.

In the event that there is more than one risk rating, the lower rating shall apply.
The current rating shall be the one available on the website of the respective rating agency. For these purposes, the rating must be publicly available on the website of the respective rating agency, as well as on the website of the rated financial institution, on a permanent basis.

SECOND: This norm shall enter into force upon notification by the Superintendence of Banks and Other Financial Institutions, without prejudice to its subsequent publication in La Gaceta, Official Journal.

(f) legible, Ovidio Reyes R. President of the Board of Directors; (f) illegible, Luis Ángel Montenegro Espinoza, Vice President of the Board of Directors; (f) illegible, Bruno Gallardo, Minister of Finance, Proprietary Member; (f) illegible, Roberto Rivas, Non-executive Proprietary Member; (f) illegible, Hugo Ortega, Non-executive Proprietary Member.

The undersigned Ruth Elizabeth Rojas Mercado, Secretary of the Monetary and Financial Board, certifies that it conforms to its original, which was duly compared.