Lima, 15 July 2015

S.B.S. Resolution No. 4174 -2015

The Superintendent of Banking, Insurance and
Private Pension Fund Administrators

WHEREAS:

That, the General Law of the Financial System and the Insurance System and Organic Law of the Superintendency of Banking and Insurance, Law No. 26702 and its amending norms, hereinafter the General Law, establishes in its article 222° that, in the evaluation of the operations that make up the credit portfolio, the debtor's cash flows, its income, financial situation, net worth, future projects and other factors relevant to determining the debt service and payment capacity must be taken into account; expressly stating that the basic criterion is the debtor's payment capacity and that guarantees are subsidiary;

That, the Regulation for the Evaluation and Classification of the Debtor and the Requirement of Provisions, approved by SBS Resolution No. 11356-2008 and its amending norms, establishes, among other aspects, the criteria for the evaluation and classification of the debtors that make up the credit portfolio;

That, by SBS Resolution No. 895-98 and its amending and complementary norms, the Accounting Manual for companies of the Financial System was approved;

That, it is convenient to incorporate into the current regulatory framework the treatment applicable to a modality of group credits, called in the norm approved by this Resolution as solidarity group credits, with the purpose that these promote the population's access to basic financial services;

That, the issuance of provisions related to the financings defined in the norm approved by this Resolution as solidarity group credits does not prevent financial system companies from agreeing with their clients other modalities of group credits that may or may not be solidarity, to which the special provisions contained in this Resolution will not be applicable;

That, it is necessary to modify the Accounting Manual for companies of the Financial System, to allow the identification of the solidarity group credits referred to in the Regulation approved by this Resolution;

That, in order to gather the opinions of the general public regarding the proposals to modify the regulations applicable to supervised companies, the publication of the draft norm was ordered under the provisions of Supreme Decree No. 001-2009-JUS;

Having the approval of the Deputy Superintendencies of Banking and Microfinance, Economic Studies, Risks, and Legal Advice; and,

In use of the powers conferred by numerals 7 and 9 of article 349° of the General Law;

RESOLVES:

Article One.- To approve the Regulation of Solidarity Group Credits, in the following terms:

“REGULATION OF SOLIDARITY GROUP CREDITS

CHAPTER I GENERAL PROVISIONS

Article 1°.- Scope

The Regulation is applicable to the companies included in literal A of article 16° of the General Law of the Financial System and the Insurance System and Organic Law of the Superintendency of Banking and Insurance, Law No. 26702 and its amending norms, as well as to Banco Agropecuario and Banco de la Nación, insofar as they do not conflict with the regulations that govern them, hereinafter companies.

Article 2°.- Definition and characteristics of solidarity group credits

Solidarity group credits are those granted to a group of persons who are jointly and severally liable for the credit obligations acquired and in which the credit subject is the group as a whole.

The Regulation recognizes two types of solidarity groups based on their self-management capacity:

2.1 Non-self-managed solidarity group credits that comply, at a minimum, with the following characteristics:

a) They are granted to groups composed of no fewer than five (5) nor more than thirty (30) natural persons who, knowing each other, group together voluntarily; and, are domiciled or carry out their activities in the same geographic area, in such a way that monitoring of the group is allowed.

b) They are granted under the fixed installment modality.

c) They keep a record of the credits granted and amortizations made.

d) The exposure in the company cannot exceed 10 UIT or 0.5 UIT per the number of members, whichever is lower.

2.2 Self-managed solidarity group credits that comply, at a minimum, with the following characteristics:

a) They are granted to groups composed of no fewer than five (5) nor more than thirty (30), natural persons who, knowing each other, group together voluntarily; and, are domiciled or carry out their activities in the same geographic area, in such a way that monitoring of the group is allowed.

b) They are granted under the fixed installment modality.

c) They manage a common fund based on periodic contributions.

d) They keep a record of the credits granted and amortizations made.

e) The exposure in the company cannot exceed the greater of the following amounts: i) the amount indicated in literal d) of numeral 2.1 above or ii) 30% of the common fund up to a maximum of 20 UIT.

CHAPTER II PRUDENTIAL ASPECTS

Article 3°.- Evaluation of the debtor

The solidarity group credit is granted after evaluation of the willingness and payment capacity. In said credit, the solidarity group is considered as the debtor for the constitution of provisions, capital requirements and limits to financings.

3.1 Companies must gather the following minimum information:

a) Names and surnames, domicile and identity document number of each member of the group, specifying who is the representative;

b) Domicile assigned to the group. This domicile is the one considered for the pertinent legal purposes.

Additionally, the company will assign an internal code that identifies the solidarity group.

3.2 The file of the solidarity group must contain, at a minimum, the following documentation:

a) Evaluation of the repayment capacity of the solidary group.

b) Periodic reports on the position of the solidary group that consider at least: i) the detail of the obligation, guarantees (when applicable) and provisions; ii) the analysis of the evolution of the credits granted to the solidary group; iii) the identification of refinancings granted to the solidary group; iv) contractual modifications that do not represent refinancing, indicating the principal balance, interest, commissions and expenses.

c) Documentation on guarantees and insurance, when applicable.

d) Correspondence addressed to the solidary group and/or received from it. Likewise, internal correspondence of the company, generated in the business conducted with the solidary group.

Article 4.- Type of credit and credit classification of the solidary group credit

The solidary group credit is considered as a credit to a microenterprise and its credit classification is carried out in accordance with the provisions of the Regulation for the Evaluation and Classification of the Debtor and the Provision Requirements, approved by SBS Resolution No. 11356-2008 and its amending norms.

Article 5.- Report to the Credit Bureau

The information of the solidary group, as well as of its members, must be reported to the Superintendency. The Superintendency, through a multiple official letter, issues the instructions on the structure and form of submission of the referred report.

Article 6.- Management of the solidary group credit

The companies must establish, and keep updated at least annually, the guidelines, policies and conditions under which the solidary group credit is managed, considering parameters for analysis of granting and permanent monitoring of the credits granted, the provisions contemplated in the Regulation, among other relevant aspects.

The companies must have trained and specialized personnel for the management of solidary group credits. The companies train, directly or through outsourcing, the potential members of the solidary group, on the credit conditions and the concept of joint and several liability.

Likewise, the companies must:

a) Establish early warning signals that indicate a negative evolution of the solidary group.

b) Carry out periodic monitoring reports, which include the alerts found, show the proportion and evolution of solidary groups with high credit risk and the actions taken to manage the risks.

c) When applicable, monitor the evolution of the coverage level (loan/guarantee ratio) of the solidary group credits granted.

d) Carry out periodic retrospective analyses of the set of solidary group credits, determining the cause of failed credits through sample reviews.

CHAPTER III ASPECTS REGARDING PREVENTION OF MONEY LAUNDERING AND TERRORISM FINANCING

Article 7°.- Simplified customer due diligence regime

Joint and several group credits are included in the simplified customer due diligence regime referred to by the regulations in force on the prevention of money laundering and the financing of terrorism.

The identification and verification requirements applicable to the granting of joint and several group credits must include, at a minimum, the full name of the members of the joint and several group, as stated in their national identity document (DNI), with an indication of their address updated according to the declaration of each of them. The company must verify this information with the database of the National Registry of Identification and Civil Status (RENIEC).

FINAL PROVISION

SOLE: The provisions of Circular N° B-2184-2010, F-524-2010, CM-0371-2010, CR-0240-2010, EF-2-2010, EAH-6-2010, EAF-0241-2010, EDPYME-133-2010, FOGAPI-36-2010, on the minimum information required for the granting, monitoring, control, evaluation and classification of credits, shall not be applicable to the credits covered by this regulation.

Article Second.- Amend the Accounting Manual for Financial System Companies, approved by Resolution N° 895-98 and its amending and complementary regulations, hereinafter the Accounting Manual, as follows:

1. Amend Chapters III "Chart of Accounts" and IV "Description and Dynamics of Accounts" of the Accounting Manual, as follows:

Incorporate the following subaccounts and analytical accounts, as well as their description:

8109.34	Non-self-managed joint and several group credits
	In this subaccount, the non-self-managed joint and several group credits referred to in the Regulation on Joint and Several Group Credits are recorded.
8109.34.01	Current credits
8109.34.02	Restructured credits
8109.34.03	Refinanced credits
8109.34.04	Overdue credits
8109.34.05	Credits in judicial collection
8109.35	Self-managed joint and several group credits
	In this subaccount, the self-managed joint and several group credits referred to in the Regulation on Joint and Several Group Credits are recorded.
8109.35.01	Current credits
8109.35.02	Restructured credits
8109.35.03	Refinanced credits
8109.35.04	Overdue credits
8109.35.05	Credits in judicial collection

2. Amend Annex N° 6 "Debtor Credit Report" - DCR in Chapter V "Complementary Information" of the Accounting Manual, as follows:

Incorporate the following analytical subaccounts in the Chart of Accounts of the Debtor Credit Report (DCR):

8109.34.01	Current credits
8109.34.02	Restructured credits
8109.34.03	Refinanced credits
8109.34.04	Overdue credits
8109.34.05	Credits in judicial collection
8109.35.01	Current credits
8109.35.02	Restructured credits
8109.35.03	Refinanced credits
8109.35.04	Overdue credits

8109.35.05
Credits in judicial collection

Article Third.- Incorporate item 16-A) in section I "Minor Offenses" of Annex 2 "Specific Offenses of the Financial System and of Complementary and Related Service Companies" of the Sanctions Regulation approved by SBS Resolution N° 816-2005 and its amending regulations, as indicated below:

16-A) Non-compliance with the regulations in force on risk management, evaluation, granting and/or monitoring of joint and several group credits.

Article Fourth.- This resolution shall enter into force on 1 December 2015, except for the provisions of item 2 of the second article, which shall enter into force from the information corresponding to the month of March 2016.

Register, communicate and publish.

DANIEL SCHYDLOWSKY ROSENBERG
Superintendent of Banking, Insurance and
Private Pension Fund Administrators