Resolution Amending Articles 11 and 12 of the Standard on Deposit and Investment Limits

Resolution No. CD-SIBOIF-1053-1-ABRI24-2018
Dated April 24, 2018
STANDARD AMENDING ARTICLES 11 AND 12 OF THE STANDARD ON DEPOSIT AND INVESTMENT LIMITS

The Board of Directors of the Superintendence of Banks and Other Financial Institutions,

CONSIDERING

I
That Article 10, item 11 of Law No. 316, Law of the Superintendence of Banks and Other Financial Institutions and its amendments, and Articles 57, item 1, 53, and 54 of Law No. 561, General Law of Banks, Non-Bank Financial Institutions, and Financial Groups; empower the Board of Directors of the Superintendence of Banks and Other Financial Institutions to issue standards related to investments and deposits, as well as the limits for this type of operation in the country and abroad for supervised financial institutions.

II
That it is necessary to amend Articles 11 and 12 of the Standard on Deposit and Investment Limits, in order to update the list of risk rating agencies, for the purposes of risk qualifications that banks and foreign investments must hold, in which entities in the country deposit and invest, in cases where required.

In exercise of its powers,

HAS ISSUED

The following,

Resolution No. CD-SIBOIF-1053-1-ABRI24-2018
STANDARD AMENDING ARTICLES 11 AND 12 OF THE STANDARD ON DEPOSIT AND INVESTMENT LIMITS

FIRST: Articles 11 and 12 of the Standard on Deposit and Investment Limits contained in Resolution No. CD-SIBOIF-650-2-OCT20-2010, dated October 20, 2010, published in La Gaceta, Official Journal No. 2 of January 6, 2011, and its amendments, are amended, which shall read as follows:

"Art. 11. Repealed

Art. 12. Rating Parameters.- For the purposes of determining local or international rating as well as sovereign risk, only the risk rating agencies and ranges established in the following table are considered:

Risk Rating Agency	Qualification Categories
Issuer Obligations	Short-term Obligations
Fitch IBCA	BBB- or superior

The Superintendent may update the above table in case of new authorized and registered risk rating societies in the registry kept by the Superintendence for these purposes, according to the corresponding investment-grade qualifications. Likewise, it may be updated when new internationally recognized risk rating agencies are determined, or in case these entities modify their risk rating nomenclatures; which shall be reported to the Board of Directors of the Superintendence prior to the notification made to financial institutions via circular.

In the event of more than one risk rating, the lowest rating shall be applied.
The current rating shall be the one available on the website of the respective rating agency. For these purposes, the rating must be publicly available on the website of the respective rating agency, as well as on the website of the rated financial institution, permanently."

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 Moises Casco Marenco) (f) U. Cerna B. Secretary.

URIEL CERNA BARQUERO
Secretary of the Board of Directors SIBOIF