Resolution SBS No. 274-2024: Amending Resolution SBS No. 3952-2022 and the Regulation for the Consolidated Supervision of Financial and Mixed Conglomerates

Los Laureles Nº 214 - Lima 27 - Perú. Telf.: (511) 630-9000 Lima, January 24, 2024 Resolution S.B.S.
No. 274-2024

The Superintendent of Banks, Insurance, and Private Pension Fund Administrators

CONSIDERING:

That, through Legislative Decree No. 1531, the General Law of the Financial System and of the Insurance System and the Organic Law of the Superintendence of Banks and Insurance - Law No. 26702 (hereinafter, General Law) was modified to continue adapting the regulatory framework to the Basel III capital standard, regulating the structure of effective equity, as well as the elements that count and are deducted from the different sub-levels and levels of effective equity, according to the characteristics of each element, and establishing minimum solvency requirements that financial system companies must comply with;

That, the Second Final Complementary Provision of Legislative Decree No. 1531 authorizes this Superintendence to establish, through general norms, the forms and deadlines for adaptation to comply with the modifications to articles 184 and 199 of the General Law;

That, through Resolution SBS No. 3952-2022, an adaptation schedule for gradual increase up to 100% of the percentage applicable to the deductions indicated in items v, vi, and vii of letter h) of numeral 1.1 of article 184 of the General Law was established, as well as for assets recognized by the difference between fair value and nominal value of the acquired credit portfolio, and it was indicated that such deductions are made to effective equity; specifying additionally, according to a schedule, a minimum percentage of such deductions, subject to a gradual increase up to 100%, which must be made from ordinary level 1 capital;

That, likewise, through Resolution SBS No. 3952-2022, an adaptation schedule was established for the minimum solvency requirements established in article 199 of the General Law;

That, through Resolution SBS No. 2192-2023, among others, the adaptation schedule for the minimum solvency requirements established in article 199 of the General Law, established by Resolution SBS No. 3952-2022, was modified;

That, through Resolution SBS No. 11823-2010 and its modifications, the Regulation for the Consolidated Supervision of Financial and Mixed Conglomerates was approved, in which the structure of the consolidated effective equity of the consolidable group of the financial system and the financial group is established, as well as the elements that count and are deducted from the different sub-levels and levels of effective equity of the consolidable group of the financial system and the financial group, according to the characteristics of each element;

That, through Resolution SBS No. 3004-2023, modifications were made to the Regulation for the Consolidated Supervision of Financial and Mixed Conglomerates, to adapt it to what is established in Legislative Decree No. 1531;

That, likewise, through Resolution SBS No. 3004-2023, the Sixth Transitional Provision of the Regulation for the Consolidated Supervision of Financial and Mixed Conglomerates was incorporated, through which an adaptation schedule for gradual increase up to 100% of the percentage applicable to the deductions indicated in items v, vi, and vii of letter g) of numeral 1 of letter A of articles 5-B° and 10° of the aforementioned regulation was established, as well as for assets recognized by the difference between fair value and nominal value of the acquired credit portfolio of the consolidable group of the financial system and the financial group with a company responsible for consolidated information belonging to the consolidable group of the financial system that come from the consolidable group of the financial system, and it was indicated that such deductions are made to consolidated effective equity; specifying additionally, according to a schedule, a minimum percentage of such deductions, subject to a gradual increase up to 100%, which must be made from consolidated ordinary level 1 capital;

That, considering the challenges faced by the Peruvian financial system, due to the current economic situation and the imminent threat of the El Niño phenomenon, this Superintendence considers it necessary to modify the aforementioned schedules, in order to provide an additional deadline for financial system companies to execute their equity strengthening plans;

That, likewise, it is necessary to modify certain Annexes of the Regulation for the Consolidated Supervision of Financial and Mixed Conglomerates, to improve the consistency of reported information;

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

In exercise of the powers conferred by numerals 7, 9, and 13 of article 349 of the General Law, and based on the exceptional conditions established in article 14 of Supreme Decree No. 001-2009-JUS and its modifications;

RESOLVES:

Article First. Substitute article two of Resolution SBS No. 3952-2022, as follows:

“Article Second.- For the deductions of ordinary level 1 capital indicated in items v, vi, and vii of letter h) of numeral 1.1 of article 184 of the General Law, as well as for assets recognized by the difference between fair value and nominal value of the acquired credit portfolio, the following adaptation deadline applies:

Date Deduction Percentage
January 2023 70%
January 2025 80%
January 2026 90%
January 2027 100%

For cases where the assets corresponding to items v and vi of letter h) of numeral 1.1 of article 184 of the General Law, as well as assets recognized by the difference between fair value and nominal value of the acquired credit portfolio, were registered after December 2022, they will correspond to the deduction percentage of the row “January 2027” of the previous table.

The deduction percentages indicated in the previous table for the deductions of ordinary level 1 capital indicated in items v, vi, and vii of letter h) of numeral 1.1 of article 184 of the General Law, as well as for assets recognized by the difference between fair value and nominal value of the acquired credit portfolio, are discounted from effective equity. From the deduction percentage, ordinary level 1 capital must represent, as a minimum, what is established in the following schedule:

Date
Minimum Percentage of Deduction of Ordinary Level 1 Capital with Respect to Deduction Percentage January 2023 30% January 2025 60% January 2026 80% January 2027 100% ”

Article Second. Substitute article three of Resolution SBS No. 3952-2022, as follows:

“Article Third.- For the solvency requirements established in article 199 of the General Law, the following adaptation deadline applies:

Period Minimum Level 1 Ordinary Capital Requirement (percentage of Total Risk-Weighted Assets and Contingents) Minimum Level 1 Effective Equity Requirement (percentage of Total Risk-Weighted Assets and Contingents) Global Limit

January 2023 to March 2023 3.825% 5.10% 8.5%
April 2023 to August 2024 4.05% 5.40% 9.0%
September 2024 to February 2025 4.275% 5.70% 9.5% March 2025 onwards 4.50% 6.00% 10.0% ”

Article Third. Substitute the sixth transitional provision of the Regulation for the Consolidated Supervision of Financial and Mixed Conglomerates, approved by Resolution SBS No. 11823-2010 and its modifications, as follows:

“Sixth.- Adaptation Deadline for Consolidated Ordinary Level 1 Capital Deductions

For the deductions of consolidated ordinary level 1 capital of the consolidable group of the financial system and the financial group with a company responsible for consolidated information belonging to the consolidable group of the financial system that come from the consolidable group of the financial system indicated in items v, vi, and vii of letter g) of numeral 1 of letter A of articles 5-B° and 10° of this Regulation, respectively, as well as for assets recognized by the difference between fair value and nominal value of the acquired credit portfolio of the consolidable group of the financial system and the financial group with a company responsible for consolidated information belonging to the consolidable group of the financial system that come from the consolidable group of the financial system, the following adaptation deadline applies:

Date Deduction Percentage
January 2023 70%
January 2025 80%
January 2026 90%
January 2027 100%

For cases where the assets corresponding to items v and vi of letter g) of numeral 1 of letter A of articles 5-B° and 10° of this Regulation, as well as assets recognized by the difference between fair value and nominal value of the acquired credit portfolio, were registered after December 2022, they will correspond to the deduction percentage of the row “January 2027” of the previous table.

The deduction percentages indicated in the previous table for the deductions of consolidated ordinary level 1 capital indicated in items v, vi, and vii of letter g) of numeral 1 of letter A of articles 5-B° and 10° of this Regulation, as well as for assets recognized by the difference between fair value and nominal value of the acquired credit portfolio, are discounted from consolidated effective equity. From the deduction percentage, consolidated ordinary level 1 capital must represent, as a minimum, what is established in the following schedule:

Date
Minimum Percentage of Deduction of Consolidated Ordinary Level 1 Capital with Respect to Deduction Percentage January 2023 30% January 2025 60% January 2026 80% January 2027 100% ”

Article Fourth. Modify the Annexes of the Regulation for the Consolidated Supervision of Financial and Mixed Conglomerates, approved by Resolution SBS No. 11823-2010 and its modifications, 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 and its modifications.

Article Fifth. This resolution enters into force from the day following its publication in the Official Newspaper El Peruano, except for article four, which enters into force from information corresponding to the first quarter of 2024.

Register, communicate, and publish.

MARIA DEL SOCORRO HEYSEN ZEGARRA
Superintendent of Banks, Insurance, and AFP