Regulatory Alerts2002-10-22 | Resolución 123/2002Added · Updated
Resolution 123/2002
The Board of Directors of the Central Bank of Bolivia amends Article 11 of the Legal Reserve Regulation to require non-bank financial entities authorized by the Superintendence of Banks and Financial Entities, with average public liabilities exceeding $80 million over the last six months, to maintain a single legal reserve account at the Central Bank. This resolution also extends the validity of Resolution 074/2002 regarding reserve requirements until December 10, 2002, and becomes effective on November 1, 2002.
BOARD RESOLUTION NO. 123/2002 SUBJECT: ECONOMIC POLICY ADVISORY – APPROVES MODIFICATIONS TO THE CONSOLIDATED TEXT OF THE LEGAL RESERVE REGULATION.
HAVING SEEN: Law 1670 of October 31, 1995. The Consolidated Text of the Legal Reserve Regulation approved by Board Resolution No. 088/2000 of November 28, 2000, and subsequent modifications approved by Board Resolutions 049/2001 of June 5, 2001, 113/2001 of November 13, 2001, 120/2001 of November 29, 2001, 012/2002 of January 22, 2002, 074/2002 of July 2, 2002, and 079/2002 of July 23, 2002. The Reports from the Economic Policy Advisory APEC-INEP 049/2002 and APEC-INEP 050/2002 of October 21, 2002. The Report from the Legal Affairs Management SANO No. 232/2002 of October 22, 2002.
CONSIDERING: That the Central Bank of Bolivia, in compliance with Law 1670, has established a Legal Reserve regime of mandatory compliance for banks and financial intermediation entities.
That with the purpose of strengthening the level of reserves and addressing possible requirements of the financial system emerging from the regional uncertainty situation, the Report from the Economic Policy Advisory APEC-INEP 049/2002 recommends extending the validity of Board Resolution No. 074/2002, in its scope established in Articles 1, 2, and 3, until December 10, 2002.
That the Report from the Economic Policy Advisory APEC-INEP 050/2002 recommends granting non-bank entities that maintain reserve accounts at the BCB the possibility to conduct repo operations directly with the Issuing Institute instead of doing so through banking entities.
That in virtue of the powers conferred by Articles 7, 14, 37, and 54 subsections d), i), o), and q) of Law 1670, the Board of the BCB is authorized to modify the Legal Reserve Regulation.
THEREFORE, THE BOARD OF THE CENTRAL BANK OF BOLIVIA RESOLVES:
Article 1.- Modify Article 11 of the Consolidated Text of the Legal Reserve Regulation, in the following terms:
SAYS: Article 11 (Legal Reserve Accounts). Banking entities, and non-bank financial entities that in the last six months have registered average obligations with the public above $80 million, will maintain at the BCB a single account called "current and reserve account" in each of the four denominations (national currency, MNUFV, MVDOL, and foreign currency). Non-bank entities may only draw checks on this account for the collection of cash at BCB counters.
The entities indicated in the previous paragraph must constitute the reserve in cash, in the current and reserve account enabled at the BCB, or in the account enabled for this purpose in entities authorized by the BCB. This account will not be subject to any type of judicial embargo or retention by third parties.
MUST SAY: Article 11 (Legal Reserve Accounts). "Banking entities, and those non-bank financial entities authorized by the Superintendence of Banks and Financial Entities that in the last six months had registered average obligations with the public above $80 million, will maintain at the BCB a single account called 'current and reserve account' in each of the four denominations (national currency, MNUFV, MVDOL, and foreign currency). Non-bank entities may draw checks on this account only for the collection of cash at BCB counters.
The financial entities included in Article 1 of this Regulation must constitute cash reserve, in the current and reserve account enabled at the BCB, or in the account enabled for this purpose in entities authorized by the BCB. This account will not be subject to any type of judicial embargo or retention by third parties."
Article 2.- This modification will enter into force from November 1, 2002.
Article 3.- Extend the validity period of Board Resolution No. 074/2002, of July 2, 2002, in the aspects indicated in its Articles 1, 2, and 3, until December 10, 2002.
Article 4.- The Presidency and the General Management are in charge of the execution and compliance of this Resolution.
La Paz, October 22, 2002.
Juan Antonio Morales A.
Armando Méndez M. Juan Medinaceli V.
Enrique Ackermann A.
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