Regulatory Alerts2008-11-19 | Resolución SBS 11356-2008Added · Updated
SBS Resolution No. 11356-2008: Regulation for the Evaluation and Classification of the Debtor and Requirement of Provisions
This resolution approves a new Regulation for the Evaluation and Classification of the Debtor and Requirement of Provisions, effective July 1, 2010, while modifying the existing regulation starting December 1, 2008. It establishes specific provision rates for the Normal Risk Category, such as 0.7% for commercial credits and 1.0% for consumer credits, and introduces a General Regime of Countercyclical Provisions activated when the annualized GDP growth average exceeds 5%. The countercyclical rule is activated as of December 1, 2008, requiring companies to constitute at least two-thirds of the required provisions by December 31, 2008, with the remainder by February 28, 2009, applicable to multiple-operation companies and other entities within the financial system.