RegAlert2002-08-20 | Resolución 092/2002Added · Updated
Resolution 092/2002
The Board of Directors of the Central Bank of Bolivia revokes Resolution 076/2002, which had authorized financial intermediation entities to engage in portfolio purchase and call option sale operations as exceptional liquidity mechanisms. This revocation takes effect immediately, as the massive reduction in public deposits has been reversed and systemic risk probabilities have substantially decreased, making exceptional liquidity channels unnecessary. The Presidency and General Management are tasked with executing and complying with this resolution.
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BOARD RESOLUTION NO. 092/2002
SUBJECT: FINANCIAL ENTITIES MANAGEMENT – RESOLUTION NO. 076/2002 OF THE BOARD IS HEREBY REVOKED.
HAVING REVIEWED:
Law 1670 of October 31, 1995.
Board Resolution No. 076/2002, of July 16, 2002, which approves the Regulation on Portfolio Purchase and Sale of a Call Option to Entities of the Financial Intermediation System.
The report from the Financial Entities Management Department GEF-SANA No. 241/002 of August 20, 2002.
The report from the Legal Affairs Management Department SANO/172/2002 of August 20, 2002.
CONSIDERING:
That subsection d) of Article 38 of Law 1670 authorizes the Central Bank of Bolivia (BCB) to purchase, discount, or guarantee assets for the purpose of preserving a stable and competitive financial intermediation system.
That the national financial system has suffered a significant contraction in public deposits during the months of June and July of the current management period.
That the Central Bank of Bolivia, with the aim of preserving stability and confidence in the financial system, within the framework of subsection d) of Article 38, approved Board Resolution No. 076/2002, which allows portfolio purchase and call option sale operations for financial intermediation entities, as an additional mechanism to provide liquidity in the face of systemic risks.
That as of the present date, the trend of massive deposit reduction has been reversed, and consequently, the probabilities of systemic risk have substantially decreased.
//2. B.D. No. 092/2002
That the report from the Financial Entities Management Department GEF-SANA 241/2002 indicates that in the return to normality of the financial system, it is not necessary to maintain exceptional liquidity provision channels.
That the Legal Affairs Management Department, in its report SANO/172/2002, states that in accordance with Article 54, subsections a) and q), it corresponds to the Board of Directors of the BCB to interpret and modify its regulations.
THEREFORE:
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA
RESOLVES:
Article 1.- From this date, revoke Board Resolution No. 076/2002 of July 16, 2002, which approved the Regulation on Portfolio Purchase and Simultaneous Sale of a Call Option to Entities of the Financial Intermediation System.
Article 2.- The Presidency and General Management are hereby charged with the execution and compliance of this Resolution.
La Paz, August 20, 2002
Juan Antonio Morales A.
Juan Medinaceli V. Armando Méndez M.
Enrique Ackermann A.
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Lineage: In force
Timeline
This document supersedes: Resolution 076/2002 Approving the Regulation on Portfolio Purchase and Sale of a Call Option to Financial Intermediation System Entities
Source: Banco Central de Bolivia — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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