Regulatory Alerts1998-03-17 | Resolución 027/98Added · Updated
Resolution 027/98 Approving the Regulations for the Constitution and Activities of Second-Tier Financial Entities
The Board of Directors of the Central Bank of Bolivia approves the regulations governing the constitution and operations of Second-Tier Financial Entities (EFSP), effective May 4, 1998. These entities are prohibited from capturing public funds and may only conduct transactions with legally authorized private financial institutions. The regulations mandate a minimum paid-in capital equal to 80% of that required for banking entities, restrict credit granting to specific leverage limits relative to net equity, and prohibit retail banking services, foreign investments exceeding 20% of net equity, and investments in insurance or financial service capital.
Topics
monetary
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