Regulatory Alerts2017-06-20 | CD-SIBOIF-1003-2-JUN20-2017Added · Updated
Resolution Reforming Article 8 of the Regulation on Deposit and Investment Limits
The Board of Directors of the Superintendence of Banks and Other Financial Institutions amended Article 8 of the Regulation on Deposit and Investment Limits to establish specific exposure caps for supervised financial institutions. The revised text defines percentage limits relative to the calculation base for various deposits and securities, including a 30% cap for demand and time deposits, 10% for public debt securities, and 15% for instruments in banks with first-rate international or local ratings. It also permits unlimited holdings in Central Government securities and sets higher thresholds for US Treasury and Multilateral Credit Organization debt. The regulation allows temporary excesses due to external deposits or pending investments if regularized within three business days with justification to the Superintendent.