Resolution SBS No. 1546-2020: Modification of the Accounting Manual for Financial System Companies, Approved by Resolution SBS No. 895-98, and Issuance of Various Provisions

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 1 Lima, June 8, 2020 Resolution S.B.S.
No. 1546-2020
The Superintendent of Banks and 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 provision rates for credit risk 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 Requirement of Effective Equity for Credit Risk was approved, which establishes the methodology to be applied, as well as the requirements that financial system companies must meet to calculate the requirement of effective equity for credit risk using the standard method or the internal ratings-based method;

That, through Resolution SBS No. 895-98 and its amendments, the Accounting Manual for Financial System Companies was approved;

That, through Resolution SBS No. 6941-2008 and its amendments, the Regulation for the Management of Over-indebtedness Risk for Retail Debtors was approved, which provides that companies must establish in their commercial policies, as well as in granting, modifying, and reviewing credit lines, explicit criteria and measures that incorporate the risk of over-indebtedness of retail debtors;

That, through Resolution SBS No. 41-2005 and its amendment, the Regulation for the Management of Credit Exchange Rate Risk was approved, which establishes guidelines for adequate control of credit exchange rate risk; and through Circulars B2145-2005, CR-0201-2005, EAF-0229-2005, EDPYME-0117-2005, CM-0332-2005, F-0485-2005 and their amendments, complementary provisions on the management of credit exchange rate risk were established;

That, through Circular No. B-2148-2005, FOGAPI-0026-2005, CR-0204-2005, CM-0335-2005, F-0488-2005, EDPYME-0119-2005, EAF-0231-2005, S-0613-2005 and their amendments, provisions were established with the aim of ensuring that companies adequately manage concentration risk in the operations they carry out;

That, through Supreme Decree No. 044-2020-PCM and its amendments, the National Emergency State 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 and its amendment, the Business Support Fund for Micro and Small Enterprises (FAE-MYPE) was created with the purpose of promoting financing for micro and small enterprises (MYPE);

That, through Legislative Decree No. 1455-2020 and its amendment, the National Government Guarantee Program for Continuity in the Payment Chain (Programa REACTIVA PERÚ) was created, which aims to guarantee the financing of the replacement of working capital funds for companies facing payments and short-term obligations with their workers and suppliers of goods and services, through a mechanism that grants the National Government's guarantee to national currency credits placed by financial system companies;

That, given the current situation the country is going through, through Resolution SBS No. 1314-2020, it was exceptionally ordered that, for credits covered by the guarantee of the REACTIVA PERÚ Program, a credit risk provision rate of 0% applies when credit counterparty substitution is applied;

That, likewise, through Resolution SBS No. 1315-2020, it was exceptionally ordered that, for the portion of credits covered by the guarantee of the Business Support Fund for Micro and Small Enterprises (FAE-MYPE), a credit risk provision rate of 0% applies when credit counterparty substitution is applied. Likewise, it was exceptionally ordered that, for the portion of exposures covered by the guarantee of said fund, a risk weighting factor of 0% applies for the calculation of the requirement of effective equity for credit risk under the standard method when credit counterparty substitution is applied;

That, it is necessary to modify Annex No. 5 “Report on Debtor Classification and Provisions and its methodological notes” and Report No. 2-A1 “Weighted Assets and Contingencies by Credit Risk - Standard Method” and its methodological notes, of Chapter V of the Accounting Manual for Financial System Companies, as well as to make clarifications in Chapter IV of the said Manual, in order to align them with the provisions established in Resolution SBS No. 1314-2020 and Resolution SBS No. 1315-2020;

That, likewise, it is necessary to incorporate in Chapter V of the Accounting Manual, a new report in order to monitor reprogrammed credits granted under the National Emergency;

That, it is necessary to establish, in an exceptional manner, at 50% of effective equity, the limit that applies to the total of the guarantees granted by the Business Support Fund for Micro and Small Enterprises (FAE-MYPE) in favor of the same financial system company;

Having the approval of the Adjunct Superintendencies of Banking and Microfinance, Risks, Economic Studies, and Legal Advice; and,

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 2

In exercise of the authority conferred by numbers 7, 9, and 13 of article 349 of the General Law of the Financial System and the Insurance System and the Organic Law of the Superintendence of Banks and Insurance, Law No. 26702 and its amendments, and based on the exceptional conditions established in article 14 of Supreme Decree No. 001-2009-JUS and its amendments;

RESOLVES:

Article First.- Modify the Accounting Manual for Financial System Companies, approved by Resolution SBS No. 895-98 and its amendments, in accordance with the Annex attached to this Resolution, which is published on the Institutional Portal (www.sbs.gob.pe), in accordance with what is established in Supreme Decree No. 001-2009-JUS, with validity starting from the information corresponding to the month of May.

Article Second.- Regarding the new Report No. 35 indicated in number III of the Annex that forms part of this Resolution, in accordance with Article First, additionally, companies must submit the information corresponding to the months of March and April of this year, within the same deadline and manner of submission established for the information of May 2020.

Article Third.- Establish that the calculation of the provisions referred to in the first and third paragraphs of article 7 of the Regulation for the Management of Over-indebtedness Risk for Retail Debtors approved by Resolution SBS No. 6941-2008 and its amendments, excludes the portion of exposures covered by the guarantee of the REACTIVA PERÚ Program and the Business Support Fund for Micro and Small Enterprises (FAE-MYPE), when credit counterparty substitution is applied.

Likewise, establish that the additional provisions referred to in article 7 of the Regulation for the Management of Credit Exchange Rate Risk approved by Resolution SBS No. 41-2005 and its amendment do not apply to the portion of exposures covered by the guarantee of the REACTIVA PERÚ Program and the Business Support Fund for Micro and Small Enterprises (FAE-MYPE), when credit counterparty substitution is applied.

Article Fourth.- Establish, in an exceptional manner, at fifty percent (50%) of the effective equity of financial system companies, the limit that applies to the total of the guarantees granted by the Business Support Fund for Micro and Small Enterprises in favor of the same financial system company.

Article Fifth.- 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