Resolution SBS No. 1315-2020: Special Provisions for Credit Risk Provisions and Effective Capital Requirements for Exposures Guaranteed by FAE-MYPE

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 1 Lima, April 27, 2020 Resolution S.B.S.
No. 1315-2020
The Superintendent of Banks, Insurance, and Private Pension Fund Administrators

CONSIDERING:

That, through Resolution SBS No. 11356-2008 and its amendments, the Regulation for the Evaluation and Classification of Debtors and the Requirement of Provisions was approved, which establishes the credit risk provision rates applicable to different types of credit, based on the credit classification of debtors;

That, through Resolution SBS No. 14354-2009 and its amendments, the Regulation for the Effective Capital Requirement for Credit Risk was approved, which establishes the methodology to be applied, as well as the requirements that financial system entities must meet to calculate the effective capital requirement for credit risk using the standard method or the internal ratings-based method;

That, through Supreme Decree No. 044-2020-PCM and its amendments, a National State of Emergency was declared as a result of the Coronavirus (COVID-19) outbreak, and various exceptional and temporary measures regarding the spread of COVID-19 have been established;

That, through Urgency Decree No. 029-2020, the creation of the Business Support Fund for Micro and Small Enterprises (FAE-MYPE) was established with the aim of promoting financing for micro and small enterprises (MYPE), through loans for working capital, as well as to restructure and refinance their debts; and that through Ministerial Resolution No. 124-2020-EF/15, its operating regulation was approved;

That, through Urgency Decree No. 049-2020, measures were established to strengthen the management of FAE-MYPE, through the allocation of new resources, providing that the use of loans is exclusively for working capital and establishing new limits on individual guarantees, in order to continue implementing timely and effective measures that allow providing MYPE with the necessary financing for working capital;

That, given the current situation the country is going through, it is necessary to establish special provisions for the establishment of provisions for credit risk for the portion of loans that have the guarantee of FAE-MYPE, and for the calculation of the effective capital requirement for credit risk for the portion of exposures that have the guarantee of the aforementioned fund;

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 2 Having obtained the approval of the Adjunct Superintendencies of Banking and Microfinance, Risks, Economic Studies, and Legal Advisory; and, In exercise of the powers conferred by paragraphs 7 and 9 of Article 349 of the General Law of the Financial System and the Insurance System and the Organic Law of the Superintendence of Banking and Insurance (Law No. 26702 and its amendments), and based on the exceptional conditions established in paragraph 3.2 of Article 14 of Supreme Decree No. 001-2009-JUS and its amendments;

RESOLVES:

First Article.- Establish that, exceptionally, a credit risk provision rate of 0% is applicable to the portion of loans that have coverage from the guarantee of the Business Support Fund for Micro and Small Enterprises (FAE-MYPE) when credit counterparty substitution applies.

Second Article.- Establish that, exceptionally, a risk-weighting factor of 0% is applicable for the purpose of calculating the effective capital requirement for credit risk under the standard method, to the portion of exposures that have coverage from the guarantee of the Business Support Fund for Micro and Small Enterprises (FAE-MYPE) when credit counterparty substitution applies.

Third Article.- This Resolution enters into force the day following its publication in the official newspaper El Peruano.

Register, communicate, and publish

SOCORRO HEYSEN ZEGARRA
Superintendent of Banks, Insurance, and Private Pension Fund Administrators