Norm Reforming Article 50 of the Standard on Credit Risk Management

Resolution No. CD-SIBOIF-987-5-MAR7-2017
Dated March 7, 2017
NORM REFORMING ARTICLE 50 OF THE STANDARD ON CREDIT RISK MANAGEMENT

The Board of Directors of the Superintendence of Banks and Other Financial Institutions, after deliberations on the matter,

CONSIDERING

I

That on August 20, 2008, the Standard on Credit Risk Management was approved, contained in Resolution No. CD-SIBOIF-547-1-AGOST20-2008, published in La Gaceta, Official Journal No. 176 and 178, on September 11 and 17, 2008, which aims to establish minimum guidelines to be followed by financial institutions for the evaluation and classification of risk assets according to the quality of their debtors, among other aspects oriented toward managing credit risk.

II

That for the purposes of applying what is established in Article 50 of the aforementioned standard, regarding the identification of natural or legal persons linked to their commercial credit debtors, it is necessary to establish a threshold from which financial institutions will require the information contained in Annex 2 of this standard.

III

That in accordance with the considerations set forth above and pursuant to what is established in Article 3, items 3 and 13, and Article 10, item 7) of Law 316, Law of the Superintendence of Banks and Other Financial Institutions, and its reforms.

In exercise of its powers,

HAS ISSUED

The following,

CD-SIBOIF-987-5-MAR7-2017
NORM REFORMING ARTICLE 50 OF THE STANDARD ON CREDIT RISK MANAGEMENT

FIRST: Article 50 of the Standard on Credit Risk Management, contained in Resolution No. CD-SIBOIF-547-1-AGOST20-2008, of August 20, 2008, published in La Gaceta, Official Journal No. 176 and 178, on September 11 and 17, 2008, is hereby amended, which shall read as follows:

"Art. 50 Identification of persons linked to debtors.- It is the responsibility of the financial institution to identify natural or legal persons linked to its debtors of commercial credits granted in national or foreign currency for amounts equal to or greater than the equivalent of one hundred thousand United States dollars (US$100,000.00), completing the information in Annexes 2-A, 2-B, and 2-C "Related Parties," which is an integral part of this standard."

SECOND: This standard shall enter into force upon its notification, without prejudice to its subsequent publication in La Gaceta, Official Journal. . (f) S. Rosales C. (f) M. Díaz O. (f) Gabriel Pasos Lacayo (f) Fausto Reyes B. (f) illegible (Silvio Moisés Casco Marenco) (f) illegible (Freddy José Blandón Argeñal) (f) U. Cerna B.

URIEL CERNA BARQUERO
Secretary of the Board of Directors SIBOIF