Resolution JPRFM-2025-019-F: Reforming Deposit Insurance Premium and Target Fund Rules for 2026

RESOLUTION No. JPRFM-2025-019-F
THE BOARD OF FINANCIAL AND MONETARY POLICY AND REGULATION CONSIDERING:

That, Article 226 of the Constitution of the Republic of Ecuador prescribes that 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 of the same instrument states that Public Administration constitutes a service to the community governed by the principles of effectiveness, efficiency, quality, hierarchy, coordination, planning, among others;

That, the first paragraph of Article 303 of the constitutional norm determines that the formulation of monetary, credit, exchange, and financial policies is the exclusive faculty of the Executive Function and will be implemented through the Central Bank of Ecuador;

That, on October 13, 2025, the Organic Reforming Law of the Organic Monetary and Financial Code was published in the Sixth Supplement of the Official Register No. 142;

That, Article 13 of the Organic Monetary and Financial Code, Book I, creates the Board of Financial and Monetary Policy and Regulation, part of the Executive Function, as an organ with functional, technical, and institutional autonomy, and in its decisions, responsible for the formulation of monetary, credit, financial, securities, insurance, and prepaid comprehensive health care services policy and regulation. The Board of Financial and Monetary Policy and Regulation will be the highest governing body of the Central Bank of Ecuador;

That, Article 17 of the aforementioned Code, in its pertinent part, determines that:

"(...) For the fulfillment of these functions, the Board will issue regulations in matters within its competence, without altering legal provisions.
The Board of Financial and Monetary Policy and Regulation may issue regulations by segments, economic activities, and other criteria. It may even reform or repeal regulations from the former Board of Monetary Policy and Regulation, the Board of Financial Policy and Regulation, or the Board of Monetary and Financial Policy and Regulation.

RESOLUTION No. JPRFM-2025-019-F
All norms and policies issued by the Board of Financial and Monetary Policy and Regulation in the exercise of its functions, duties, and faculties must be backed by duly substantiated technical and legal reports (...)";

That, Article 18 of the same Code establishes the specific functions of the Board of Financial and Monetary Policy and Regulation in the financial sphere, specifically in numeral 16, which authorizes this Institution to issue secondary regulation related to Deposit Insurance, Liquidity Fund, and Private Insurance Fund;

That, Article 24 of the same Code provides that the acts of the Board of Financial and Monetary Policy and Regulation enjoy the presumption of legality and will be expressed through resolutions that will have mandatory force, which will govern from their publication in the Official Register, or from the date of their issuance when so determined by the Board, in accordance with the subject matter;

That, Article 25.2 of the same instrument determines that the Technical Secretariat of the Board of Financial and Monetary Policy and Regulation is exercised by the Central Bank of Ecuador, and Article 25.3 establishes as its functions the preparation of technical and legal reports supporting regulation proposals, providing technical and administrative support to the Board of Financial and Monetary Policy and Regulation, and any others assigned by said Board;

That, Article 325 of the aforementioned Code establishes "Deposit Insurance will be funded with the following resources, to the extent corresponding to each financial sector:

1. The contributions that entities from the private and popular and solidarian financial sectors will make, in accordance with what is provided in this Code (...)";

That, Article 326 of the previously cited Organic Code determines that contributions to Deposit Insurance and the periodicity of their payment by entities from the private and popular and solidarian financial sectors will be determined by the Board of Monetary and Financial Policy and Regulation. It also provides that these contributions may be differentiated by each financial sector and entity, and will consist of a fixed premium and a variable premium, differentiated by the risk of the entity;

That, Article 328 of the same Code establishes that the amount protected by Deposit Insurance for each natural or legal person will be differentiated for each of the insured financial sectors;

That, General Provision Twenty-Ninth of the same instrument states: "In current legislation where mention is made, indistinctly, of the Board of Monetary and Financial Policy and Regulation, the Board of Monetary Policy and Regulation; or the Board of Financial Policy and Regulation, replace and understand as 'Board of Financial and Monetary Policy and Regulation'";

That, Subsection IV "Sources of Resources of the Deposit Insurance System and Payment of Contributions", of Section I "General Rules for the Operation of Deposit Insurance for the Private Financial Sector and the Popular and Solidarian Financial Sector", Chapter XXVIII "On Deposit Insurance", Title II "National Financial System", Book I "Monetary and Financial System" of the Codification of Monetary, Financial, Securities, and Insurance Resolutions, contains the norms regarding contributions for Deposit Insurance premiums for the Private Financial Sector; as well as, the regulation of the target fund for Deposit Insurance and Payment of Contributions;

That, through Resolution No. COSEDE-DIR-2023-048, of September 14, 2023, the Board of Directors of the Corporation of Deposit Insurance, Liquidity Fund, and Private Insurance Fund (COSEDE), approved the Target Fund Methodology applicable to Deposit Insurance for the Private Financial Sector;

That, First Transitional Provision of the Organic Reforming Law of the Organic Monetary and Financial Code determines that members of the Board of Financial and Monetary Policy and Regulation, sworn in on September 16, 2025, by the National Assembly, will continue to exercise their functions for the periods for which they were designated and will maintain their labor continuity and acquired rights;

That, through Letter No. T.233-SGJ-25-098, of September 5, 2025, signed by the Constitutional President of the Republic, addressed to the President of the National Assembly, the list of candidates for the designation of Members of the Board of Financial and Monetary Policy and Regulation was sent; as well as, the temporality of their stay within the initial period;

That, the Plenary of the National Assembly, on September 16, 2025, designated and swore in the members of the Board of Financial and Monetary Policy and Regulation, in the persons of: Gustavo Estuardo Camacho Dávila; Silvia Daniela Moya Arteta; Roberto Javier Basantes Romero; María Isabel Camacho Cárdenas; and, Jeniffer Nathaly Rubio Abril;

That, through Letter No. COSEDE-COSEDE-2025-0406-OFICIO, of November 21, 2025, the Corporation of Deposit Insurance, Liquidity Fund, and Private Insurance Fund (COSEDE) sent to the Board of Financial and Monetary Policy and Regulation, the

RESOLUTION No. JPRFM-2025-019-F
Reserved Technical Report No. CTRE-MET-2025-006, in which the calculation methodology of the fixed premium and the target fund corresponding to Deposit Insurance for the Private Financial Sector is analyzed and detailed, and proposes its increase, as well as, Legal Report No. CTPSF-UPN-0125-2025, of November 21, 2025, in which the legal basis of the proposal is detailed;

That, the Board of Financial and Monetary Policy and Regulation, through extraordinary session No. 009-2025, under mixed modality, on December 31, 2025, reviewed the proposal sent via Memorandum No. BCE-BCE-2025-0342-M, of December 29, 2025, by the General Manager of the Central Bank of Ecuador to the President of the Board of Financial and Monetary Policy and Regulation; as well as, Technical Report No. BCE-GEEE-069-2025 / BCE-SEMF-098-2025, of December 26, 2025; and, Legal Report No. BCE-GJ-071-2025, of December 29, 2025; and,

In exercise of its functions and in attention to Article 24 of the Organic Monetary and Financial Code, the Board of Financial and Monetary Policy and Regulation,

RESOLVES:

Article 1.- Substitute Article 15 of Paragraph I "Contributions for Deposit Insurance Premiums of the Private Financial Sector", Subsection IV "Sources of Resources of the Deposit Insurance System and Payment of Contributions", Section I "General Rules for the Operation of Deposit Insurance for the Private Financial Sector and the Popular and Solidarian Financial Sector", Chapter XXVIII "On Deposit Insurance", Title II "National Financial System", Book I "Monetary and Financial System" of the Codification of Monetary, Financial, Securities, and Insurance Resolutions, with the following:

"Art. 15.- Fixed Premium.- For the year 2026, a fixed premium of 0.12% annually will be charged, on the basis of calculation of contributions established in accordance with the preceding article.
This premium percentage will be reviewed annually by the Board of Financial and Monetary Policy and Regulation based on the report sent by the Corporation of Deposit Insurance, Liquidity Fund, and Private Insurance Fund (COSEDE), by November, or if necessary, at any time, for extraordinary causes".

Article 2.- Substitute the first paragraph of Article 24 of Paragraph IV "Target Fund", Subsection IV "Sources of Resources of the Deposit Insurance System and Payment of Contributions", Section I "General Rules for the Operation of Deposit Insurance for the Private Financial Sector and the Popular and Solidarian Financial Sector", Chapter XXVIII "On

RESOLUTION No. JPRFM-2025-019-F
Deposit Insurance", Title II "National Financial System", Book I "Monetary and Financial System" of the Codification of Monetary, Financial, Securities, and Insurance Resolutions, with the following:

"Art. 24.- Target Fund of Deposit Insurance for the Private Financial Sector.- The target level of Deposit Insurance for the Private Financial Sector is fixed at 19.20% of covered deposits (fund equity/covered deposits), and will be reviewed annually by the Board of Financial and Monetary Policy and Regulation, based on the report sent for this effect by the Corporation of Deposit Insurance, Liquidity Fund, and Private Insurance Fund (COSEDE)".

FINAL PROVISION. - This resolution will enter into force from its issuance, without prejudice to its publication in the Official Register.

The publication of this resolution on the institutional website and the updating of the Codification of Monetary, Financial, Securities, and Insurance Resolutions is entrusted to the General Secretariat of the Central Bank of Ecuador.

COMMUNICATE AND PUBLISH. - Given in the city of Quito D.M., on December 31, 2025.

THE PRESIDENT
Mgs. Gustavo Estuardo Camacho Dávila

The aforementioned resolution was processed and signed by Master Gustavo Estuardo Camacho Dávila - President of the Board of Financial and Monetary Policy and Regulation, in the city of Quito D.M., on December 31, 2025.- I CERTIFY.

TECHNICAL SECRETARY
Mgs. Jennifer Mishel Carrillo Rosales