Resolution SBS No. 2980-2020: Amending the General Regulation of Savings and Credit Cooperatives Not Authorized to Capture Public Funds

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

Lima, November 27, 2020
Resolution S.B.S.
No. 2980-2020

The Superintendent of Banks, Insurance and Private Pension Fund Administrators

CONSIDERING:

That, Law No. 30822 modified 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 modifying norms, hereinafter General Law, substituting the Twenty-Fourth Final and Complementary Provision, regarding Savings and Credit Cooperatives Not Authorized to Capture Public Funds (Coopac);

That, in item 4-A-1 of the Twenty-Fourth Final and Complementary Provision of the General Law, it is established that in terms of regulation, the Superintendence of Banks, Insurance and AFP, issues the norms that are necessary for the compliance of what is established in the aforementioned final and complementary provision, as well as the other aspects that are necessary for the supervision and regulation of the Coopac, which are consistent with the modular scheme contemplated in item 2 of the aforementioned final and complementary provision. The norms issued by the Superintendence of Banks, Insurance and AFP must respect the cooperative and proportionality principles applicable to supervision;

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

That, on account of the aforementioned emergency situation, through Resolution SBS No. 1561-2020, a series of articles of the General Regulation of Savings and Credit Cooperatives Not Authorized to Capture Public Funds, approved by Resolution SBS No. 480-2019 and its modifications, hereinafter COOPAC Regulation, and of the Regulation of Autonomous Patrimony of Credit Insurance of Savings and Credit Cooperatives (COOPAC), approved by Resolution SBS No. 1308-2019, were modified, with the purpose of allowing Coopac to face the difficult situation imposed by COVID-19;

That, given the economic damages that the emergency situation has been causing to natural and legal persons domiciled in national territory, among which are Coopac and their cooperative members, and that the State of Emergency continues to prolong throughout the present year, it has been necessary to modify again the provisioning adequacy schedule provided for in the COOPAC Regulation; of the rules for endowing the cooperative reserve when the total of the required provisions is not reached; as well as the schedule for adequacy to other norms issued by the Superintendence of Banks, Insurance and AFP;

That, in order to collect opinions from the general public regarding the proposal for regulation, the pre-publication of the draft resolution on the matter was ordered on the electronic portal of the Superintendence, under the provisions of the Thirty-Second Final and Complementary Provision of the General Law, item 2 of the Tenth Fifteenth Final Complementary Provision of Law No. 30822 and Supreme Decree No. 001-2009-JUS;

Having the previous technical and positive feasibility report on the norm issued by the Adjunct Superintendence of Cooperatives and with the approval of the Adjunct Superintendences of Cooperatives and of Legal Advice and;

In exercise of the powers conferred by items 7 and 9 of article 349 of the General Law, as well as in item 4-A of the Twenty-Fourth Final and Complementary Provision of the General Law;

RESOLVES:

Article First.- Modify the General Regulation of Savings and Credit Cooperatives Not Authorized to Capture Public Funds, approved by Resolution SBS No. 480-2019 and its modifying norms, in the following terms:

1. Substitute article 42, as well as the second and tenth Transitional Complementary Provisions, as follows:

Article 42.- Credits and guarantees

42.1 The credits granted by Coopac must be subject to a credit regulation that contains the policies and procedures to evaluate and grant a credit. The aforementioned regulation must include, among other aspects, the requirements, conditions and approval levels of the credits, as well as the types of guarantee that can be received. Said regulation must comply with what is established in this article according to the level of Coopac in question, be approved by the Board of Directors and be available to the Superintendence for the purposes of supervision it deems pertinent.

42.2 The credits granted by Level 1 Coopac and Level 2 Coopac with total assets equal to or less than 32,200 UIT, as well as the guarantees received for said credits, are subject to the provisions established in Annex 1 "Criteria for the Evaluation and Classification of the Debtor and the Requirement of Provisions applicable to Level 1 and 2 Coopac" attached to this Regulation. While lands in general and urban plots in populated centers are not insured by insurance companies, the requirement to have insurance to consider the guarantee as preferred is not exigible, taking into account the procedure established by the Superintendence for the application of this exception.

42.3 The credits granted by Level 2 Coopac with total assets greater than 32,200 UIT and Level 3 Coopac, as well as the guarantees received for said credits are subject to the provisions established in the Regulation for the Evaluation and Classification of the Debtor and the Requirement of Provisions approved by Resolution SBS No. 11356-2008 and its modifications. While lands in general and urban plots in populated centers are not insured by insurance companies, the requirement to have insurance to consider the guarantee as preferred is not exigible, taking into account the procedure established by the Superintendence for the application of this exception.

42.4 Additionally, Level 2 Coopac with total assets greater than 32,200 UIT and Level 3 Coopac are subject to the provisions established in the Credit Risk Management Regulation approved by Resolution SBS No. 3780-2011.

SECOND.- Schedule for 100% adequacy of required provisions

Level 1 Coopac and Level 2 Coopac with total assets equal to or less than 32,200 UIT have a gradual schedule for the constitution of one hundred percent (100%) of the required provisions in article 42, according to the following table:

Date % of Required Provisions
As of December 31, 2020 40%
As of December 31, 2021 40%
As of December 31, 2022 50%
As of December 31, 2023 60%
As of December 31, 2024 80%
As of December 31, 2025 100%

Level 2 Coopac with total assets greater than 32,200 UIT and Level 3 Coopac have a gradual schedule for the constitution of one hundred percent (100%) of the required provisions in article 42, according to the following table:

Date % of Required Provisions
As of December 31, 2020 50%
As of December 31, 2021 50%
As of December 31, 2022 60%
As of December 31, 2023 80%
As of December 31, 2024 100%

While a Coopac has not constituted 100% of the required provisions in article 42, nor has it reached the gradual levels of cooperative reserve established in the Eleventh Transitional Complementary Provision, it cannot request the authorizations mentioned in articles 22, 23, 24 and 25, as applicable, nor distribute excesses. Likewise, while Coopac that have authorization to carry out operations corresponding to Level 2 have not constituted 100% of the required provisions in article 42, any portfolio purchase operation referred to in item 8 of paragraph 20.1 of article 20 of this Regulation, must have prior approval of this Superintendence, even if the credit portfolio is acquired from an unrelated person, or the transferor is a supervised company. For this purpose, what is established in the Regulation for the Transfer and Acquisition of Credit Portfolio approved by Resolution SBS No. 1308-2013 and its modifications regarding the rules governing the authorization procedure will be applicable.

The provisions that Coopac have constituted or are going to constitute cannot be reversed, except those that have been constituted voluntarily and do not come from the reassignment of provisions.

In case a Coopac has obtained an authorization to carry out new operations under the condition of compliance with one hundred percent (100%) of the required provisions, it must maintain said level of compliance.

While a Coopac has not constituted one hundred percent (100%) of the required provisions by article 42, it must annually allocate no less than fifty percent (50%) of the year's remaining profits to the constitution of the cooperative reserve, without prejudice to the Assembly establishing a higher percentage.

TENTH.- Application of external alignment

In compliance with the Fifth Transitional Complementary Provision of the Coopac Law, from January 1, 2025, what is established in article 159 of the General Law regarding supplying relevant information to the Risk Central is applied to Coopac. From the following month in which Coopac supply said information to the Risk Central, Level 2 Coopac with total assets greater than 32,200 UIT and Level 3 Coopac are obliged to carry out the alignment process indicated in the Regulation for the Evaluation and Classification of the Debtor and the Requirement of Provisions approved by Resolution SBS No. 11356-2008 and its modifications. Without prejudice to this, the Superintendence requests information from Coopac that it considers pertinent for supervision purposes.

Article Second.- Substitute Article Three of Resolution SBS No. 480-2019, as follows:

Article Third.- This norm enters into force the day after its publication in the Official Diary El Peruano, from which date the Regulation of the Savings and Credit Cooperatives Not Authorized to Operate with Public Funds approved by Resolution SBS No. 540-99 and its modifications, the Regulation for the Opening, Conversion, Transfer and Closure of Offices of the Savings and Credit Cooperatives Not Authorized to Operate with Public Funds approved by Resolution SBS No. 759-2007, as well as Resolution SBS No. 12321-2010, are repealed.

Level 2 Coopac with total assets greater than 32,200 UIT have until January 31, 2021 to comply with what is established in paragraph 42.3 of article 42 of the General Regulation of Savings and Credit Cooperatives Not Authorized to Capture Public Funds, regarding that the credits they grant, as well as the guarantees they receive for said credits, are subject to the provisions established in the Regulation for the Evaluation and Classification of the Debtor and the Requirement of Provisions approved by Resolution SBS No. 11356-2008 and its modifications.

Likewise, Coopac that as of February 8, 2019, the date on which the General Regulation of Savings and Credit Cooperatives Not Authorized to Capture Public Funds enters into force, register excesses of the limits contemplated in paragraph 36.1 of article 36, in paragraph 37.1 of article 37, as well as in articles 38 and 40, cannot increase the levels of exposure existing at that moment and have until December 31, 2021 to adapt their exposures to the compliance of said limits.

Furthermore, Coopac have until December 31, 2021 to comply with what is established in letters a) and b) of article 48 regarding minimum liquidity ratios and until December 31, 2022 to comply with what is established in paragraphs 43.2 and 43.3 of article 43 regarding the treatment of assets adjudicated and received in payment, of the General Regulation of Savings and Credit Cooperatives Not Authorized to Capture Public Funds.

On the other hand, Coopac have until December 31, 2022 to comply with what is established in article 49 of the General Regulation of Savings and Credit Cooperatives Not Authorized to Capture Public Funds, on the treatment of investments.

Additionally, Coopac have until December 31, 2022 to comply with what is established in the Regulation of Integral Risk Management for Savings and Credit Cooperatives Not Authorized to Operate with Public Funds approved by Resolution SBS No. 13278-2009, as well as in the Credit Risk Management Regulation approved by Resolution SBS No. 3780-2011 for Level 2 Coopac with total assets greater than 32,200 UIT and Level 3 Coopac, having to present to the Board of Directors semi-annual reports on their progress in the implementation of said norms.

Finally, Coopac have until December 31, 2023 to adapt the capital contributions they have received before the entry into force of Resolution SBS No. 1285-2020 to what is established in paragraphs 27.1 and 27.2 of article 27 of the General Regulation of Savings and Credit Cooperatives Not Authorized to Capture Public Funds.

Article Third.- This Resolution enters into force from the day after its publication.

Register, communicate and publish

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