Resolution JPRF-F-2025-0154: Reforming Section XVI "General Standard for Community Savings and Savings Banks" and Article 363 of Section XXII — BCE — EC

Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas Financial Management Governmental Platform. Red Block, 8th floor | Postal Code: 170507 | Quito - Ecuador | THE FINANCIAL POLICY AND REGULATION BOARD CONSIDERING:
That, Article 82 of the Constitution of the Republic establishes the right to legal certainty, which is based on respect for the Constitution and the existence of prior, clear, public legal norms applied by competent authorities; That, Article 84 of the Magna Carta provides that every body with normative power shall have the obligation to adapt, formally and materially, laws and other legal norms to the rights provided for in the Constitution; That, Article 132, number 6 of the Constitution of the Republic of Ecuador grants public control and regulation bodies the faculty to issue norms of a general character in matters within their competence, without being able to alter or innovate legal provisions; That, Article 226 of the Fundamental Norm mandates that State institutions, their bodies, dependencies, public servants, and persons acting by virtue of a state power shall exercise only the competencies and faculties attributed to them in the Constitution and the law; That, Article 227 ibidem states that the Public Administration constitutes a service to the community governed by principles of effectiveness, efficiency, quality, hierarchy, coordination, participation, among others; That, Article 283 of the Constitution of the Republic defines the economic system as social and solidary, recognizes the human being as the principle and end, and advocates for a balanced relationship between the State, the market, and society; That, Article 308 of the Constitution of the Republic of Ecuador prescribes that Financial Activities are a service of public order; That, Article 309 of the Fundamental Norm indicates that “the National Financial System is composed of the public, private, and popular and solidary sectors (…)”. Each of these sectors will have specific and differentiated control norms and entities, which will be responsible for preserving their security, stability, transparency, and solidity; That, Article 13 of the Organic Monetary and Financial Code, Book I, created the Financial Policy and Regulation Board, part of the Executive Function and as a public law entity, responsible for the formulation of credit, financial, securities, insurance, and prepaid comprehensive health care services policy and regulation; That, numbers 2 and 3 of Article 14 of the cited Code establish that the Financial Policy and Regulation Board has competence to: “2. Issue regulations that allow maintaining the integrity, solidity, sustainability, and stability of the national financial, securities, insurance, and prepaid comprehensive health care services systems in accordance with what is provided in Article 309 of the Constitution of the Republic of Ecuador; 3. Issue micro-prudential regulations for the national financial, securities, insurance, and prepaid comprehensive health care services sectors, based on proposals presented by the respective superintendencies, within their respective scopes of competence and without prejudice to their independence”; That, Article
14.1 of the aforementioned Organic Code allows the Financial Policy and Regulation Board to exercise the following faculties, among which are: “1. Regulate the creation, constitution, organization, activities, operation, and liquidation of financial entities; (...); 7. Issue the prudential regulatory framework to which financial, securities, insurance, and prepaid comprehensive health care services entities must adhere, a framework that must be coherent, not give rise to regulatory arbitrage (...); (...); 27. Exercise the other functions, duties, and faculties assigned to it by this Code and the law.”;

Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas Financial Management Governmental Platform. Red Block, 8th floor | Postal Code: 170507 | Quito - Ecuador | That, the second paragraph of Article 74 of the aforementioned Code, regarding the nature and scope of the Superintendence of the Popular and Solidarity Economy, establishes that: “(...) It is within the competence of the Superintendence to control the entities of the popular and solidary financial sector in accordance with what is determined in this Code. (...);”; That, Article 150 of the aforementioned Code prescribes that entities of the national financial system shall be subject to the regulation issued by the Financial Policy and Regulation Board; That, Article 160 of the cited Code establishes that the national financial system is integrated by the public financial sector, the private financial sector, and the popular and solidary financial sector; That, Article 163 ibidem determines that the popular and solidary financial sector is composed of: 1. Savings and credit cooperatives; 2. Central boxes; 3. Associative or solidary entities, community banks and savings boxes; and, 4. Auxiliary services of the financial system, such as: banking software, transactional, monetary species and securities transport, payments, collections, networks and ATMs, accounting and computing, and others qualified as such by the Superintendence of the Popular and Solidarity Economy within its scope of competence. Associative or solidary entities, community banks, and savings boxes shall be governed by the provisions of the Organic Law of the Popular and Solidarity Economy and the regulations issued by the Monetary and Financial Policy and Regulation Board; That, Article 444 of the Organic Monetary and Financial Code determines that “(...) Popular and solidary financial entities are subject to the regulation of the Financial Policy and Regulation Board and the control of the Superintendence of the Popular and Solidarity Economy, who in the policies they issue shall take into account the nature and characteristics proper to the solidary financial sector.”; That, Article 458 on associative or solidary entities, community banks, and savings boxes establishes that these are organizations formed by the will of their members within the limit and in the manner determined by the Financial Policy and Regulation Board, and shall have their own structure of government, administration, representation, self-control, accountability, and shall be registered in the corresponding registry. In addition, associative or solidary entities, community banks, and savings boxes are formed with economic contributions from their members in the form of savings, without being able to capture funds from third parties. They may grant credits only to their members as provided by the regulations issued by the Financial Policy and Regulation Board and may receive financing, refundable or non-refundable, for their
development and strengthening granted by entities of the national financial system, support entities, national and international cooperation; That, in accordance with Article 1 of the Organic Law of the Popular and Solidarity Economy, the popular and solidarity economy is understood as the form of economic organization, where its members, individually or collectively, organize and develop processes of production, exchange, marketing, financing, and consumption of goods and services, to satisfy needs and generate income, based on relationships of solidarity, cooperation, and reciprocity, privileging work and the human being as the subject and end of their activity, oriented towards good living, in harmony with nature, over appropriation, profit, and capital accumulation; That, Article 9 of the aforementioned Law establishes that: “Organizations of the Popular and Solidarity Economy shall be constituted as legal persons, prior to compliance with the requirements contemplated in the Regulations of this Law. (...);”; That, Articles 78 and 80 of the same Law establish the following:
“Art. 78.- Popular and Solidary Financial Sector. - For the purposes of this Law, the Popular and Solidary Financial Sector is composed of savings and credit cooperatives, associative or solidary entities, community banks, and savings boxes.”

Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas Financial Management Governmental Platform. Red Block, 8th floor | Postal Code: 170507 | Quito - Ecuador | Art. 80.- Supplementary Provisions.- Savings and credit cooperatives, associative or solidary entities, community banks, and savings boxes, in matters not provided for in this Chapter, shall be governed, as appropriate according to their nature, by the provisions established in Title II of this Law; except for intervention, which shall be only for savings and credit cooperatives.”; That, Article 146 of the aforementioned Law establishes that the control of the Popular and Solidarity Economy and the Popular and Solidary Financial Sector shall be under the charge of the Superintendence of the Popular and Solidarity Economy, which is created as a technical body, with national jurisdiction, public law legal personality, own patrimony, and administrative and financial autonomy, and with coercive jurisdiction; That, in letters a, b, and f of Article 147 of the Organic Law of the Popular and Solidarity Economy, it determines that the Superintendence shall have, among others, the following attributes which it shall exercise in a decentralized manner: “(...) a) Exercise control and supervision of the administrative and economic activities of associations and cooperatives; b) Ensure the stability, solidity, and correct functioning of institutions subject to its control; (...) e) Authorize the financial activities of organizations of the Popular and Solidary Financial Sector; (...);”; That, Chapter I “On associative or solidary entities, community banks, and savings boxes” of the Regulations to the Organic Law of the Popular and Solidarity Economy determines in Articles 90, 91, and 92 the following:
“Art. 90.- Associative or solidary entities, community banks.- These are organizations that belong to the Popular and Solidary Financial Sector, which carry out their activities, exclusively, in the precincts, communities, neighborhoods, or localities where they are constituted and can be financed, with their own resources or with funds from programs or projects linked to the development of their members. They shall exercise their activity exclusively in an area of influence that does not affect other financial entities with these ends or purposes. Art. 91.- Savings boxes.- These are organizations integrated by members of the same guild or institution; by groups of workers with a common employer, family groups, neighborhood groups; or, by members of cooperatives other than savings and credit. Art. 92.- Constitution, organization, and functioning.- The constitution and organization of associative or solidary entities, community banks, and savings boxes, as well as their functioning and activities, shall be determined by the Monetary and Financial Policy and Regulation Board.”; That, the Twenty-Ninth General Provision of the Organic Monetary and Financial Code, Book I, added by the Organic Reformatory Law to the Organic Monetary and Financial Code for the Defense of Dollarization, provides that in current legislation where reference is made to the “Monetary and Financial Policy and Regulation Board,” it shall be replaced by “Financial Policy and Regulation Board”; That, the Fifty-Fourth Transitional Provision of the aforementioned normative body establishes that resolutions contained in the Codification of Monetary, Financial, Securities, and Insurance Resolutions of the Financial Policy and Regulation Board, of the Monetary and Financial Policy and Regulation Board, shall remain in force until the Monetary Policy and Regulation Board and the Financial Policy and Regulation Board decide what corresponds, within their scope of competence; That, Article 15 of the Organic Administrative Code recognizes the principle of responsibility, which establishes that: “The State shall be liable for damages as a consequence of the lack or deficiency in the provision of public services or the actions or omissions of its public servants or subjects of private law acting in the exercise of a public power by delegation of the State and its dependents, controlled or contractors”;

Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas Financial Management Governmental Platform. Red Block, 8th floor | Postal Code: 170507 | Quito - Ecuador | That, the Financial Policy and Regulation Board, in exercise of its competencies and faculties, maintains in force Section XVI “General Standard for Community Savings and Savings Banks” of Chapter XXXVI “Popular and Solidary Financial Sector”, Title II “National Financial System”, Book I “Monetary and Financial System” of the Codification of Monetary, Financial, Securities, and Insurance Resolutions, a regulation whose object is to establish for community savings and savings boxes, aspects related to their formation, internal structure, operations, and limits, within the framework of the control to which they are subject in accordance with the law; That, through Technical Report No. JPRF-CTSF-2025-010 and Legal Report No. JPRF-CJF-2025-022, both dated May 14, 2025, the Technical Coordination of Financial Sector Policy and Regulation and the Legal Coordination of Financial Policy and Norms analyze and present the technical and legal arguments to reform Section XVI “General Standard for Community Savings and Savings Banks” and Section XXII “Moratorium for the constitution and granting of legal personality to community banks and savings boxes” of Chapter XXXVI “Popular and Solidary Financial Sector”, Title II “National Financial System”, Book I “Monetary and Financial System” of the Codification of Monetary, Financial, Securities, and Insurance Resolutions with the objective of strengthening the regulatory framework applicable to these entities and, consequently, strengthening the supervision and control actions carried out by the Superintendence of the Popular and Solidarity Economy within its scope of competence; That, the Technical Secretary of the Financial Policy and Regulation Board, through Memorandum No. JPRF-ST-2025-0036-M of May 14, 2025, submits to the President of the Board the Technical Report No. JPRF-CTSF-2025-010 of May 14, 2025, issued by the Technical Coordination of Financial Sector Policy and Regulation, and the Legal Report No. JPRF-CJF-2025-022 of May 14, 2025, issued by the Legal Coordination of Financial Policy and Norms, as well as the respective draft resolution; That, the Financial Policy and Regulation Board, in ordinary session held by technological means, convened on May 16, 2025, and carried out via video conference on May 20, 2025, reviewed Memorandum No. JPRF-ST-2025-0036-M of May 14, 2025, issued by the Technical Secretary of the Board; Technical Report No. JPRF-CTSF-2025-010 of May 14, 2025, and Legal Report No. JPRF-CJF-2025-022 of May 14, 2025, as well as the corresponding draft resolution; and, In exercise of its functions, RESOLVES:
ARTICLE FIRST.- Substitute Section XVI “General Standard for Community Savings and Savings Banks” of Chapter XXXVI “Popular and Solidary Financial Sector”, Title II “National Financial System”, Book I “Monetary and Financial System” of the Codification of Monetary, Financial, Securities, and Insurance Resolutions, with the following:

“SECTION XVI: GENERAL STANDARD FOR COMMUNITY SAVINGS AND SAVINGS BOXES Art. 304.- Object.- This standard aims to establish aspects related to the constitution, registry, internal structure, operations, limits, and liquidation of community savings and savings boxes.
Art. 305.- Scope.- This standard governs community savings and savings boxes, hereinafter referred to as boxes.
Art. 306.- Definitions.- For the purposes of the application of this standard, understand by:
a) Self-control: The capacity that boxes have to establish their own control mechanisms through their internal structure. b) Neighborhood: The basic units, legally constituted, of geographical location or human settlement and social organization in a city.

Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas Financial Management Governmental Platform. Red Block, 8th floor | Postal Code: 170507 | Quito - Ecuador | c) Registry: The registry under the charge of the Superintendence of the Popular and Solidarity Economy, which contains information on duly constituted and authorized boxes, including at least the corporate name, the legal status of the entity, legal representative, and contact information. It is public access and is available on the control body's website. d) Constitution: The act through which the legal person is created by means of an agreement of wills of the members, whereby the Superintendence of the Popular and Solidarity Economy, prior to compliance with legal and regulatory provisions, grants them legal personality. e) Internal Structure: The organizational configuration adopted by boxes, in which their internal bodies, attributions, and duties in the fulfillment of their social object are defined. f) Neighborhood Group: A group of people who gather within a neighborhood with a common objective (social, cultural, sports, etc.) g) Members: All natural persons who integrate a community savings or savings box who have a common link in accordance with this section. h) Common Link: The shared and verifiable nexus that unites the members of the boxes. Art. 307.- Community Savings Boxes.- These are boxes formed by natural persons with a common link and legal capacity to contract and obligate themselves, who carry out their activities exclusively in the precincts, communities, neighborhoods, or localities where they are constituted and can be financed, with their own resources or with funds from programs or projects linked to the development of their members. Art. 308.- Savings Boxes.- These are entities integrated by natural persons with legal capacity to contract and obligate themselves whose common link is belonging to the same guild or institution; to a group of workers with a common employer, family groups, neighborhood groups; or, by members of cooperatives other than savings and credit. Art. 309.- Nature.- Boxes are financial entities of the popular and solidarity economy that are formed voluntarily by members who have a verifiable common link, with their economic contributions in the form of savings, and that, without being able to capture funds from third parties, shall have their own structure of government, administration, representation, accountability, and shall be registered in the corresponding registry. Due to the associative characteristics of these boxes, they do not constitute social capital. Art. 310.- Common Link.- Boxes, whether community or savings, must implement mechanisms and procedures to verify the existence of a common link among the natural persons seeking to become members of the box. Only members who meet the same common link by presenting verifiable documentation, according to the type of entity, may be accepted:

For community savings boxes, the common link shall be geographical based on the precinct, community, or neighborhood where their members reside.
They may only be formed and operate with respect to a single legally recognized community, precinct, or neighborhood in accordance with the Law.
For savings boxes, the common link shall be a single guild or institution, common employer, family or neighborhood group; or, by members of the same association or cooperative other than savings and credit.
The guilds, institutions, employers, or neighborhood groups with respect to which the common link is configured must be legally constituted, in accordance with the current legal provisions for each one.

Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas Financial Management Governmental Platform. Red Block, 8th floor | Postal Code: 170507 | Quito - Ecuador | Art. 310.1.- Constitution and Authorization.- For the exercise of their activities, boxes must be constituted as legal persons before the Superintendence of the Popular and Solidarity Economy and must have their authorization to exercise financial activities. For their constitution and authorization, the following requirements must be presented:
a) Proof of denomination reservation provided by the Superintendence of the Popular and Solidarity Economy. Before or following the denomination, the term “community savings box” or “savings box” must be used. Additionally, the use of denominations that, due to phonetic or semantic similarity, induce error or link the boxes with other entities of the national financial system is expressly prohibited; b) Application for constitution and authorization in the format established by the Superintendence of the Popular and Solidarity Economy, signed by the legal representative; c) Certified copy of the constitutive act, in which the will to constitute the box is expressed, with at least ten (10) founding members, who must prove their identity and the common link that unites them. In this act, the formation and roster of their internal structure shall be recorded; d) Social Statutes; e) Policies and manuals for capture, placement, and for the prevention of money laundering and financing of crimes; The Superintendence of the Popular and Solidarity Economy may request clarifications or any other information required to complete the analysis of the requirements demanded by this standard. Once the corresponding procedure is completed, the Superintendence of the Popular and Solidarity Economy shall issue the administrative act by which it grants legal personality, authorizes the boxes to exercise the financial activity in accordance with the operations established in this standard, and grants the respective operating permit. Art. 311.- Internal Structure.- Community savings boxes and savings boxes shall have, at least, a governing body that will be their highest authority and shall be integrated by all members; a board of directors; a control body; and, a legal representative. The integration, appointment, attributions, and duties of these internal bodies and legal representative shall be determined in the internal regulations and the social statutes. Art. 312.- Legal Representative.- Is the natural person designated in accordance with the e”