Resolution No. 0865-99: Amending the Regulation for the Evaluation and Classification of Debtors and the Requirement of Provisions

Lima, September 16, 1999

S.B.S. Resolution
No. 0865-99

The Superintendent of Banking and Insurance

WHEREAS:

That, by SBS Resolution No. 572-97 of August 20, 1997, the "Regulation for the Evaluation and Classification of Debtors and the Requirement of Provisions", hereinafter the Regulation, was approved, which contains the basic criteria for the qualification of debtors and constitution of provisions set forth in articles 133 and 222 of the General Law of the Financial System and the Insurance System and Organic Law of the Superintendency of Banking and Insurance, Law No. 26702, as amended by Laws No. 27008 and No. 27102, hereinafter the General Law;

That, on the other hand, article 189 of the General Law determines the assets to which a zero percent (0%) credit risk weighting corresponds and empowers this Superintendency to establish additional assets with said weighting according to their nature;

That, by Law No. 26912 of January 15, 1998, the MI VIVIENDA Housing Promotion Mortgage Fund, hereinafter the Fund, was created to facilitate the acquisition of housing, especially social-interest housing;

That the Fund grants loans to financial system enterprises so that with said resources they finance the acquisition of housing by natural persons, as well as grants risk coverage in favor of said enterprises, for which they are not obligated to reimburse to the Fund up to one third (1/3) of the financing granted to natural persons, when the latter fail to pay the financial system enterprises;

That given this situation, it is necessary that the provisions and the credit risk weighting corresponding to the financing for the acquisition of housing with resources from the Fund reflect the level of risk assumed by the financial system enterprises;

In accordance with the opinion of the Deputy Superintendencies of Banking and Legal Advisory; and,

In use of the powers conferred by numerals 7 and 9 of article 349 of the General Law;

RESOLVES:

Article One 1
.- Incorporate as the last paragraph of numeral 2.1 of Chapter III of the Regulation, the following:

"In the case of mortgage loans granted with resources from the MI VIVIENDA Housing Promotion Mortgage Fund, the financial system enterprise shall not provision for the portion of the loan that has risk coverage from said Fund."

Article Two.- The following constitute zero-risk (0%) assets: mortgage loans granted with resources from the MIVIVIENDA S.A. Fund, MIVIVIENDA mortgage loans granted with resources from financial institutions, and standardized MIVIVIENDA mortgage loans – EFIC scheme, for the proportional portion that has coverage from said Fund.
2

Article Three.- This Resolution enters into force on the day following the date of its publication in the official newspaper "El Peruano".

Register, communicate and publish.

MARTÍN NARANJO LANDERER
Superintendent of Banking and Insurance

1 Article repealed by SBS Resolution No. 808-2003 of 05/28/2003 2 Article amended by SBS Resolution No. 980-2006 of 08/04/2006. Subsequently repealed by Resolution No. 14354-2009 of 10/30/2009