Lima, 30 October 2009

S.B.S. Resolution No. 14353 - 2009

The Superintendent of Banking, Insurance and
Private Pension Fund Administrators:

WHEREAS:

That, by the first article of SBS Resolution No. 11356-2008, the entry into force as of 1 January 2010 of the new Regulation for the Evaluation and Classification of the Debtor and the Requirement of Provisions, hereinafter new Regulation, was approved, with the Regulation for the Evaluation and Classification of the Debtor and the Requirement of Provisions approved by SBS Resolution No. 808-2003 and its amending norms becoming ineffective as of said date;

That, by the fourth article of SBS Resolution No. 11356-2008, modifications were established to the Accounting Manual for financial system companies, hereinafter Accounting Manual, in order to adapt it to the guidelines established in the new Regulation;

That, by SBS Resolution No. 9786-2009 of 24 July 2009, Chapter V "Complementary Information" of the Accounting Manual was modified, in order to adapt the annexes and reports to the guidelines indicated in the new Regulation;

That, likewise, by SBS Resolution No. 9816-2009 of 30 July 2009, the treatment to be applied for the calculation of assets and contingents weighted by credit risk between the months of July to December 2009 was established;

That, it is necessary to make clarifications and introduce modifications in the new Regulation, with the purpose of prudentially adjusting some parameters that allow greater dynamism in the financial sector, without prejudice to its safety and transparency;

That, additionally, this Superintendency has considered it convenient to extend the term for the entry into force of the new Regulation as well as of the modifications to the Accounting Manual related to said Regulation, in order to grant greater facilities to the process of adaptation to it;

That, in this sense, it is also necessary to extend the validity of what is established in SBS Resolution No. 9816-2009, as well as to extend the term for the entry into force of the provisions of Annex B approved by SBS Resolution No. 4727-2009, Annex B approved by SBS Resolution No. 4729-2009 and Annex No. 2B of the Regulation for the Requirement of Effective Equity for Operational Risk approved by SBS Resolution No. 2115-2009;

That, likewise, it is necessary to adapt other regulations to the new typologies of credits established in the new Regulation;

Having regard to the opinion of the Deputy Superintendencies of Banking and Microfinance, of Risks, of Insurance, of Economic Studies and of Legal Advice; and,

In use of the attributions conferred by numerals 7, 9 and 13 of article 349 of the General Law of the Financial System and of the Insurance System and Organic of the Superintendency of Banking and Insurance – Law No. 26702 and its amending norms;

RESOLVES:

Article One.- To modify Article One of SBS Resolution No. 11356-2008 by the following text:

"Article One.- To approve the new Regulation for the Evaluation and Classification of the Debtor and the Requirement of Provisions, hereinafter Regulation, which forms part of this Resolution. The new Regulation will enter into force as of 1 July 2010, date from which the Regulation for the Evaluation and Classification of the Debtor and the Requirement of Provisions approved by SBS Resolution No. 808-2003 and its amending norms will become ineffective."

Article Two.- To modify Article Four of SBS Resolution No. 11356-2008 by the following text:

"Article Four.- Modify the Accounting Manual for Companies of the Financial System, in accordance with Annexes A and B attached to this Resolution. What is indicated in Annex A will enter into force as of the information corresponding to the month of December 2008, while the modifications contained in Annex B will enter into force as of the information corresponding to the month of July 2010."

Article Three.- To modify the Regulation for the Evaluation and Classification of the Debtor and the Requirement of Provisions approved by SBS Resolution No. 808-2003 and its amending norms, in accordance with the following:

Replace numeral 3 of Chapter II of Annex I General Regime of Procyclical Provisions" in accordance with the following text:

"3. Reassignment of procyclical provisions

The Superintendency will inform the deactivation of the procyclical rule to the companies, by Circular.

The companies may not in any case generate profits from the reversal of procyclical provisions.

The companies will reassign the procyclical provisions for the constitution of mandatory specific provisions. The Superintendency, exceptionally, may authorize the reassignment of procyclical provisions to other provisions."

Article Four.- Modify the new Regulation for the Evaluation and Classification of the Debtor and the Requirement of Provisions approved by SBS Resolution No. 11356-2008, in accordance with the following:

1. Modify Chapter I in accordance with the following:

a. Replace article 2 Definitions, in accordance with the following:

"2. DEFINITIONS

a. Credits: Refers to the sum of direct credits plus indirect credits.

b. Direct credits: Represents the financings that, under any modality, the companies of the financial system grant to their clients, originating in charge of these the obligation to deliver a determined sum of money, in one or several acts, including even the obligations derived from refinancings and restructurings of existing credits or debts.

c. Indirect credits or contingent credits: Represent the guarantees, the letters of guarantee, the bank acceptances, the letters of credit, the approved undisbursed credits and the unused credit lines, granted by the companies of the financial system.

d. Credits to multilateral development banks: Credits to organizations constituted by a group of states, which provide financing and complementary services for development.

e. Sovereign credits: Credits with central banks, public treasuries and other public sector entities that have funds allocated by the public treasury to specifically pay said exposures.

f. Credits to public sector entities: Credits to public sector agencies that have not been considered as sovereign. Includes credits to local and regional governments, as well as to public or mixed companies.

g. Credits to securities intermediaries: Credits to companies whose main lines of business are securities intermediation, fund management, financial advisory services, investment banking and securities trading. Includes financing granted to Private Pension Fund Administrators, Stock Exchanges, Brokerage Firms, Mutual Funds and Investment Funds, special purpose vehicles, trusts and the companies that administer them; as well as financing granted to other institutions designated by the Superintendency.

h. Credits to financial system companies: Credits to companies included in literals A and B of article 16 of the General Law and their foreign counterparts. Includes financing granted to FOGAPI, COFIDE, Banco de la Nación, Banco Agropecuario and the MIVIVIENDA Fund.

i. Revolving credits: These are credits in which the balance is allowed to fluctuate based on the debtor's decisions. Includes the modalities of current account advances, credit cards, current account overdrafts, revolving loans and other revolving credits. Likewise, products that allow partial reutilizations, that is, that have a revolving component and a non-revolving component, are considered within this type of credit.

j. Non-revolving credits: These are credits repayable in installments, provided that the amounts paid cannot be reused by the debtor. In this type of credit, outstanding balances are not allowed to fluctuate based on the debtor's own decisions.

k. Retail debtor: Natural or legal person that has direct or indirect credits classified as consumer (revolving and non-revolving), to microenterprises, to small enterprises or mortgage loans for housing.

l. Non-retail debtor: Natural or legal person that has direct or indirect corporate credits, to large enterprises or to medium-sized enterprises.

m. Total indebtedness in the financial system: For purposes of this regulation, it is the sum of direct credits, guarantees, letters of guarantee, bank acceptances and letters of credit that a debtor has in the financial system, not including written-off credits.

n. Exposure equivalent to credit risk of indirect credits: It is the result of multiplying the indirect credits held by a debtor in the company by the credit conversion factors (CCF).

o. Days: Calendar days.

p. Accounting Manual: Accounting Manual for Financial System Companies approved by SBS Resolution No. 895-98 of 1 September 1998 and its amending regulations.

q. Superintendency: Superintendency of Banking, Insurance and Private Pension Fund Administrators.”

b. Item 3 Credit Conversion Factors (CCF) of Indirect Credits shall be replaced with the following text:

“3. CREDIT CONVERSION FACTORS (CCF) OF INDIRECT CREDITS

For the determination of the Exposure equivalent to credit risk of indirect credits, the Credit Conversion Factors (CCF) shall be taken according to the following:

a) Confirmations of irrevocable letters of credit of up to one year, when the issuing bank is a first-tier financial system company abroad	20%
b) Issuances of letters of guarantee that back obligations to do and not to do	50%
c) Issuances of endorsements, import letters of credit and letters of guarantee not included in item “b)”, and confirmations of letters of credit not included in item “a)”, as well as bankers' acceptances	100%
d) Granted credits not disbursed and unused credit lines	0%
e) Other indirect credits not contemplated in the preceding items	100%”

c. Item 4. Credits shall be replaced with the following text:

“4. TYPES OF CREDITS

The credit portfolio shall be classified into eight (8) types.

4.1 CORPORATE CREDITS

These are credits granted to legal entities that have registered an annual sales level greater than S/. 200 million in the last two (2) years, according to the most recent audited annual financial statements of the debtor. If the debtor does not have audited financial statements, the credits may not be considered in this category.

If subsequently, the debtor's annual sales were to decrease to a level not greater than S/. 200 million for two (2) consecutive years, the credits shall be reclassified as large enterprise credits.

Additionally, sovereign credits, credits granted to multilateral development banks, public sector entities, securities intermediaries, financial system companies, autonomous credit insurance estates and guarantee funds constituted in accordance with the Law shall be considered as corporate.

4.2 LARGE ENTERPRISE CREDITS

These are credits granted to legal entities that possess at least one of the following characteristics:

a. Annual sales greater than S/. 20 million but not greater than S/. 200 million in the last two (2) years, according to the most recent financial statements of the debtor.

b. The debtor has maintained outstanding issuances of debt instruments in the capital market during the last year.

If subsequently, the debtor's annual sales were to exceed the threshold of S/. 200 million for two (2) consecutive years, the debtor's credits shall be reclassified as corporate credits, provided that audited annual financial statements are available. Likewise, if the debtor has not maintained outstanding issuances of debt instruments in the last year and its annual sales have decreased to a level not greater than S/. 20 million for two (2) consecutive years, the credits shall be reclassified as medium enterprise credits, small enterprise credits or microenterprise credits, as applicable, based on the level of total indebtedness in the financial system over the last (6) months.

4.3 MEDIUM ENTERPRISE CREDITS

These are credits granted to legal entities that possess at least one of the following characteristics:

a. They have a total indebtedness in the financial system greater than S/. 300,000 in the last six (6) months, and do not meet the characteristics to be classified as corporate or large enterprise credits.

b. Annual sales not greater than S/. 20 million.

If subsequently, the debtor's annual sales were to be greater than S/. 20 million for two (2) consecutive years or the debtor had made an issuance in the capital market, the debtor's credits shall be reclassified as large enterprise or corporate credits, as applicable. Likewise, if the debtor's total indebtedness in the financial system were to subsequently decrease to a level not greater than S/. 300,000 for six (6) consecutive months, the credits shall be reclassified as small enterprise or microenterprise credits, depending on the level of indebtedness.

Credits granted to natural persons with a total indebtedness in the financial system (excluding housing mortgage credits) greater than S/. 300,000 in the last six (6) months are also considered medium enterprise credits, provided that a portion of said indebtedness corresponds to small enterprise or microenterprise credits; otherwise, they shall remain classified as consumer credits.

If subsequently, the debtor's total indebtedness in the financial system (excluding housing mortgage credits) were to be reduced to a level not greater than S/. 300,000 for six (6) consecutive months, the credits shall be reclassified as consumer credits (revolving and/or non-revolving) and as small enterprise or microenterprise credits, depending on the level of indebtedness and the purpose of the credit, as applicable.

4.4 SMALL ENTERPRISE CREDITS

These are credits intended to finance production, marketing or service provision activities, granted to natural or legal persons, whose total indebtedness in the financial system (excluding housing mortgage credits) is greater than S/. 20,000 but not greater than S/. 300,000 in the last six (6) months.

If subsequently, the debtor's total indebtedness in the financial system (excluding housing mortgage loans) exceeds S/. 300,000 for six (6) consecutive months, the loans must be reclassified as loans to medium-sized enterprises. Likewise, in the event that the debtor's total indebtedness in the financial system (excluding housing mortgage loans) subsequently decreases to a level no greater than S/. 20,000 for six (6) consecutive months, the loans must be reclassified as loans to microenterprises.

4.5 LOANS TO MICROENTERPRISES

These are loans intended to finance production, marketing or service provision activities, granted to natural or legal persons, whose total indebtedness in the financial system (excluding housing mortgage loans) is no greater than S/. 20,000 in the last six (6) months.

If subsequently, the debtor's total indebtedness in the financial system (excluding housing mortgage loans) exceeds S/. 20,000 for six (6) consecutive months, the loans must be reclassified to the corresponding loan type, according to the level of indebtedness.

4.6 REVOLVING CONSUMER LOANS

These are revolving loans granted to natural persons for the purpose of paying for goods, services or expenses not related to business activity.

In the event that the debtor additionally has loans to microenterprises or small enterprises, and a total indebtedness in the financial system (excluding housing mortgage loans) greater than S/. 300,000 for six (6) consecutive months, the loans must be reclassified as loans to medium-sized enterprises.

The foregoing in the preceding paragraph is not applicable to loans granted to natural persons who only hold consumer loans (revolving and/or non-revolving) and/or housing mortgage loans, which must remain classified as consumer loans (revolving and/or non-revolving) and/or housing mortgage loans, as applicable.

4.7 NON-REVOLVING CONSUMER LOANS

These are non-revolving loans granted to natural persons for the purpose of paying for goods, services or expenses not related to business activity.

In the event that the debtor additionally has loans to small enterprises or microenterprises, and a total indebtedness in the financial system (excluding housing mortgage loans) greater than S/. 300,000 for six (6) consecutive months, the loans must be reclassified as loans to medium-sized enterprises.

The foregoing in the preceding paragraph is not applicable to loans granted to natural persons who only hold consumer loans (revolving and/or non-revolving) and/or housing mortgage loans, which must remain classified as consumer loans (revolving and/or non-revolving).and/or housing mortgage loans, as applicable.

4.8 MORTGAGE LOANS FOR HOUSING

These are credits granted to natural persons for the acquisition, construction, repair, remodeling, expansion, improvement and subdivision of their own housing, provided that such credits are granted secured by duly registered mortgages; whether these credits are granted through the conventional mortgage loan system, mortgage bonds or any other system of similar characteristics.

Also included in this category are credits for the acquisition or construction of own housing that at the date of the transaction, because they are future goods, goods in the process of independization or goods in the process of registration of ownership, it is not possible to constitute on them the individualized mortgage derived from the credit granted.

Likewise, the following are considered in this category:

a) Mortgage loans for housing granted through negotiable mortgage credit securities in accordance with the Seventh Section of Book Two of Law No. 27287 of 17 June 2000; and,

b) The receivables arising from real estate capitalization contracts, provided that such transaction has been destined for the acquisition or construction of own housing.

To determine the level of indebtedness in the financial system, the information from the last six (6) Consolidated Credit Reports (RCC) submitted by the Superintendency shall be taken into account. The last RCC to be considered is the one available on the first day of the current month. If the debtor does not have a credit history, the new credit shall be taken as a criterion to determine their level of indebtedness in the financial system. Likewise, if the debtor has a credit history, but has not been reported in all the RCCs of the last six (6) months submitted by the Superintendency, only the information from the aforementioned RCCs in which the debtor appears shall be taken into account."

d. Incorporate in subsection g) of numeral 5.2 Credit Classification of the Debtor, in the part corresponding to General Criteria, the following: "iii) The portfolios of transferred credits that, in accordance with the Regulation on transfer and acquisition of portfolio, are obliged to continue reporting in the RCD".

2. Amend Chapter III as follows:

a. Incorporate in numeral 2.1 General Treatment as paragraph 7, the following: "Credits that have preferred guarantees backing various obligations, in which the right of the financial system company over said guarantee is subordinated to the preference of a third party over the same, must be provisioned according to the percentages in Table 1."

b. Replace in numeral 2.1 General Treatment the paragraph referring to credits under the financial leasing modality, with the following text: "For provisioning purposes, credits under the financial leasing and real estate capitalization modality, except consumer credits, shall be considered as credits with guarantees, taking into account the quality of the goods given in financial leasing and real estate capitalization, as well as their valuation, in accordance with the provisions of numeral 3 of Chapter IV."

c. Replace in numeral 2.1 General Treatment, the paragraph referring to credits that have credit protection, with the following text: "For credits that have the subsidiary responsibility of central governments and their agencies, central banks, International Monetary Fund, European Central Bank, Bank for International Settlements, multilateral development banks listed in article 16 of the Regulation for the Effective Equity Requirement for Credit Risk, companies of the financial system or the insurance system of the country and abroad, as well as other entities with Risk II in accordance with the Regulation for the Effective Equity Requirement for Credit Risk, instrumented in (i) joint and several surety letters, (ii) guarantees, (iii) bank acceptances, iv) surety policies, v) export credit insurance for pre and post shipment financing, (vi) letters of credit, stand by letters of credit or similar guarantees, provided they are irrevocable with documents negotiated without discrepancies, (vii) credit derivatives (only total return swap and credit default swap); or that have credit insurance coverage extended by a credit insurance trust; or with coverage of a guarantee fund constituted by Law, or with the risk coverage of Fondo MIVIVIENDA S.A., the provisioning requirement shall correspond to the credit classification of the party providing the credit protection, for the covered amount, regardless of the classification of the debtor and the type of credit of the original debtor. For the credit classification of the counterparties that

provide the credit protection, the criteria indicated in Chapter II of this Regulation must be used."

d. Replace in numeral 2.1. General Treatment, the paragraphs referring to consumer credits that have contracts referring to payroll deduction of remunerations, as follows:

"Likewise, for non-revolving consumer credits that have contracts referring to payroll deduction agreements of remunerations, the company may constitute the provisions according to the percentages indicated in Table 3 of this numeral, provided that said agreements are considered eligible, for which they must comply with the following conditions:

a) The employer making the deduction must be in Normal classification at least for the last 3 months or be public sector institutions whose budget depends directly on the public treasury. If the employer does not have a credit classification, the financial institution must evaluate it and assign it a classification;

b) The agreement stipulates that the financial system company has first payment preference over other creditors or has the employer's guarantee;

c) The agreement or the operation implemented for it ensures that the maximum admissible installment/income ratio for granting the credits does not represent more than 30%, considering the worker's net monthly income (gross salary minus legal deductions, deductions ordered by court and any other deduction with better priority than the company); and,

d) The risk committee or body performing such function approves its eligible status, confirming that the corresponding agreement complies with the 3 conditions indicated above.

Additionally, for the credits granted under such eligible agreements to qualify for this preferential treatment, they must be current in their payments.

The companies must send to the Superintendency a copy of the eligible agreements in accordance with the indicated conditions, as well as any subsequent modification that occurs in the terms initially agreed, within five (5) days after their execution. ”

e. Replace numeral 2.2 as follows:

“2.2. TREATMENT OF CREDITS WITH MORE THAN NINETY (90) DAYS OF DELAY

When the debtor has any credit with a delay greater than ninety (90) days, the company must make the best estimate of the loss it would expect to have for each operation the debtor has. The estimate of this expected loss percentage (PESP) for each operation will be made taking into account the current economic situation and the condition of the operation, including the value of the guarantee(s), the credit modality, the debtor's economic sector and the purpose of the operation, among others.

For credits to small companies, credits to microenterprises and consumer credits (revolving and non-revolving), the calculation of the estimated PESP may be made according to the provision rates contemplated in numeral 2.1. of this Chapter, unless the company is authorized to use methods based on internal ratings for the calculation of the effective equity requirement for credit risk corresponding to such portfolios, in which case the provisions of the previous paragraph shall apply. The companies must constitute as specific provisions the amount that results greater between the estimated PESP and the general treatment indicated in numeral 2.1 of this Chapter.”

3. Amend Chapter IV as follows:

a. Replace in numeral 2. Refinanced and Restructured Operations, the first and second paragraphs of section 2.3, as follows:

“2.3 CLASSIFICATION

At the time of signing the refinancing contract or approving the payment reprogramming, as corresponds to a refinanced or restructured credit, the risk classification of the debtors must remain in their original categories, except for debtors classified as Normal who must be reclassified as With Potential Problems.

Subsequently, the credit classification of refinanced or restructured debtors may be improved by one category, every two (2) quarters, provided that the debtor has made timely payments of the agreed installments, and is complying with the goals of the refinancing plan. If, on the contrary, the debtor presents delays in the payment of the agreed installments or breaches of the agreed goals or deterioration in its payment capacity in accordance with Chapter II of this Regulation, the supervised company must proceed to reclassify the debtor, immediately, in a higher risk category. (…)

b. Replace in numeral 3 Valuation of Guarantees, section 3.3 as follows:

“3.3 The assets given as guarantee will be valued by a qualified professional duly registered in the Registry of Appraisers (REPEV) of this Superintendency. This requirement is mandatory for the preferred guarantees indicated in numerals 3.10.1, 3.10.2, literal h) of numeral 3.10.3 and literal a) of numeral 3.10.4 of this section, when applicable. Also subject to this requirement is the trust in guarantee constituted on the aforementioned assets. In case the preferred guarantees indicated in literal h) of numeral 3.10.3 are not appraised by an appraiser registered in the REPEV, a discount of 1% will be applied on the value of such guarantees “

c. Replace in numeral 3 Valuation of Guarantees, section 3.10, subsection h), as follows:

“h) Jewelry and precious metals with dispossession of the asset. If such guarantees are not registered in the corresponding registries, a discount of 1% will be applied on the value of such guarantees; (…)”

d. Replace in numeral 3 Valuation of Guarantees, section 3.12, subsection a) as follows:

“a) Cash deposits in national currency and foreign currency made in the lending company and subject to movable guarantee constituted in accordance with Law. In case such deposits are not registered, a discount of 0.5% will be applied on the value of such deposits.”

e. Replace the penultimate and last paragraph of numeral 6. Write-off of Uncollectible Credits, as follows:

”Written-off credits must be controlled accounting-wise in the respective accounts destined for their registration, in accordance with current accounting standards.

Written-off credits must be reported by the companies in Annex No. 6 “Credit Report of Debtors – RCD” and will be maintained in the Credit Bureau until they are transferred, forgiven or the reasons that gave rise to their write-off have been overcome, in accordance with what is reported by the corresponding company.”

4. Incorporate as Third Final and Transitory Provision the following:

"THIRD.- This Superintendency shall establish the specific guidelines, as well as the regulatory norms, for the application of the provisions set forth in this Regulation for the assessments."

5. Amend Annex I "General Regime of Procyclical Provisions" as follows:

a. Amend the last paragraph of numeral 2 of Chapter I according to the following text:

"For consumer loans that have contracts referring to payroll deduction agreements for remuneration that are eligible, in accordance with the provisions of numeral 2.1 of Chapter III of this Regulation, the procyclical component shall be 0.25%."

b. Amend the first paragraph of numeral 2 of Chapter II as follows:

"The Superintendency shall issue a Circular indicating to the companies the activation of the procyclical rule. (...)"

c. Incorporate as the last paragraph in numeral 3 of Chapter II the following text:

"The Superintendency shall inform the deactivation of the procyclical rule to the companies, by Circular."

d. Replace numeral 4 of Chapter II as follows:

"4. Reallocation of procyclical provisions

Companies may not in any case generate profits from the reversal of procyclical provisions.

Companies shall reallocate the procyclical provisions for the constitution of mandatory specific provisions. The Superintendency, exceptionally, may authorize the reallocation of procyclical provisions to other provisions."

Article Fifth.- Amend Article Second of Resolution SBS N° 9786-2009 by the following text:

"Article Second.- This Resolution shall enter into force as of the information corresponding to the month of July 2010. In the case of Daily Remittance Reports, the effective date shall be as of the first business day of July 2010."

Article Sixth.- Amend the Regulation for the Effective Equity Requirement for Operational Risk approved by Resolution SBS N° 2115-2009, as follows:

1. Amend the last paragraph of literals a and b of Article 10 by the following texts, respectively:

Literal a
(...)

"For the determination of annualized income and expenses by business lines, the accounts of the Accounting Manual shall be considered as follows:

• For the information corresponding to January-June 2010, as well as for the information corresponding to the year 2009 and prior, the grouping of accounts established in Annex 2A of this Regulation shall be used.

• For the information corresponding to July 2010 and following, the grouping of accounts established in Annex 2B of this Regulation shall be used."

Literal b
(...)

"To calculate the amount of the balance of loans and investments corresponding to Commercial Banking and Retail Banking, the accounts of the Accounting Manual shall be used as follows:

• For the information corresponding to January-June 2010, as well as for the information corresponding to the year 2009 and prior, the grouping of accounts established in Annex 2A of this Regulation shall be used.

• For the information corresponding to July 2010 and following, the grouping of accounts established in Annex 2B of this Regulation shall be used."

Likewise, amend the name of Annex N° 2B of the Regulation for the Effective Equity Requirement for Operational Risk, by the following: "CALCULATION OF THE EXPOSURE INDICATORS OF BUSINESS LINES (As of 01 July 2010)".

2. Amend Annex N° 2B in the following terms:

a. Amend the name of Annex N° 2B by the following: "CALCULATION OF THE EXPOSURE INDICATORS OF BUSINESS LINES (As of 01 July 2010)".

b. Incorporate in the section "Business lines other than commercial banking and retail banking" in the part corresponding to "Income" in the business line "Corporate finance- Income from structured financing", the following analytical subaccounts: 5104.01.12.30, 5104.01.12.31, 5104.01.12.32, 5104.01.12.33 and 5104.01.12.34.

c. Incorporate in the section "Commercial banking" in the part corresponding to "Less structured financing", the following analytical accounts and analytical subaccounts: 1406.12.19.30, 1406.12.19.31, 1406.12.19.32, 1406.12.19.33, 1406.12.19.34, 1406.12.30, 1406.12.31, 1406.12.32, 1406.12.33 and 1406.12.34.

Article Seventh.- Amend Article Fifth of Resolution SBS N° 4727-2009, by the following text:

"Article Fifth.- This Resolution shall enter into force as of 1 July 2009, except for the provisions of Annex B which shall enter into force as of 1 July 2010."

Article Eighth.- Amend Article Second of Resolution SBS N° 4729-2009, by the following text:

"Article Second.- This Resolution shall enter into force as of 1 July 2009, except for the provisions of Annex B which shall enter into force as of 1 July 2010."

Article Ninth.- Amend Article Third of Resolution SBS N° 9816-2009, by the following text:

"Article Third.- This Resolution shall be in force for the information corresponding to the months of July 2009 to June 2010."

Article Tenth.- Amend the Regulation for the transfer and acquisition of credit portfolio approved by Resolution SBS N° 1114-99, as follows:

1. Any reference to Resolutions SBS N° 572-97 and N° 808-2003 is replaced by the Regulation for the Evaluation and Classification of the Debtor and the Requirement of Provisions.

2. Replace literal a. of article 2.- Definitions, according to the following text: "a. Credit portfolio: Composed of direct loans, indirect loans, written-off loans and others of a similar nature."

3. Replace the second paragraph of article 6 in accordance with the following text: "Companies must request prior authorization from this Superintendency, except in the following cases: a) It involves transfers of written-off credit portfolio; b) It involves transfers of revolving or non-revolving consumer credit portfolio, to microenterprises (MES) or to Small Enterprises not written off, as long as it is classified as loss and provisioned one hundred percent (100%); and, c) It involves cash transfers by means of monetary payments."

Article Eleventh.- Amend the Regulation for the Administration of the Overindebtedness Risk of Retail Debtors approved by SBS Resolution No. 6941-2008, in accordance with the following:

1. Every reference to Resolution No. 808-2003 is replaced by the Regulation for the Evaluation and Classification of the Debtor and the Provision Requirement.

2. Replace in article 2 the definitions g), h) and k) in accordance with the following: "g) Total debt or indebtedness: For purposes of this regulation, the sum of retail debt of all types (to small enterprises, to microenterprises (MES), revolving and non-revolving consumer and mortgage for housing) and potential debt." "h) Retail debtor: Natural or legal person that has direct and indirect credits classified as to small enterprises, to microenterprises, revolving and non-revolving consumer and mortgage for housing."

"k) Retail obligations: The sum of direct and indirect credits of the small enterprise, MES, revolving and non-revolving consumer and mortgage for housing type in the financial system, plus accrued interest and other obligations incurred by retail debtors."

3. Replace subsections a) and c) of article 5.- Prudential measures for the administration of overindebtedness risk in accordance with the following:

"a) Take into account the total indebtedness of the debtor (and their spouse, when the latter's income is included in the analysis) with the entity and with the other companies of the financial system in the calculation of total debt in order to determine their borrowing capacity and their overindebted status. In the case of MES and small enterprise debtors, the personal and family indebtedness that microentrepreneurs, small entrepreneurs, microenterprises and small family enterprises could have must be considered, as long as the family members considered are active parts of the business."

"c) For revolving and non-revolving consumer credits, consider appropriate installment/income levels to determine borrowing capacity, adequately differentiated by products and income range, using realistic assumptions when converting credit balances into installment equivalents. For MES and small enterprise credits, take into account the degree of adequacy between debt levels and the real financing needs and the cash flows of the business."

4. Replace Article 7 in accordance with the following text:

"Article 7.- Provision requirement for companies that fail to comply with this regulation

Companies that do not comply with the provisions of this Regulation must, for provisioning purposes, calculate the credit risk equivalent exposure by applying a factor of twenty percent (20%) to the unused amount of revolving credit lines of the MES, small enterprise and revolving consumer type. On said credit risk equivalent exposure, the provision rates determined in the Regulation for the Classification of the Debtor shall be applicable.

In this regard, the amount of the revolving credit line used for the calculation referred to in the preceding paragraph must correspond to the last approved amount communicated to the client.

Additionally, those companies that do not comply with the provisions of this Regulation must constitute an additional generic provision of 1% on direct debt. Said provision shall be applicable to the direct consumer debt (revolving and non-revolving) and/or MES and/or Small Enterprise of the clients classified by the company as Normal, as applicable. Companies may exclude from the application of said provision vehicle credits and financial leases, as long as there is sufficient evidence of good management of all their elements."

5. Replace Article 8 in accordance with the following text:

"Article 8.- Clarifications on the application of the Regulation for the Classification of the Debtor

The credit risk equivalent exposure of the unused revolving credit lines of the Small Enterprises and/or MES and/or Consumer (revolving and non-revolving) type shall be subject to the provisions of the Regulation for the Classification of the Debtor, with the exception of the computation of 20% of debt in the financial system for purposes of alignment of debtor classification among companies of the financial system referred to in Chapter I of the same Regulation. Article Twelfth.- Amend the Regulation for the Administration of Credit Exchange Risk approved by SBS Resolution No. 041-2005 and its amending norms, in accordance with the following:

1. Every reference to SBS Resolution No. 808-2003 is replaced by the Regulation for the Evaluation and Classification of the Debtor and the Provision Requirement.

2. Every reference to commercial credits or to commercial portfolio is replaced by corporate credits, to large enterprises and to medium enterprises.

3. Replace the last paragraph of article 4 in accordance with the following text:

"Article 4.- Minimum requirements (….) The procedures must differentiate the treatment for each of the types of credits granted in foreign currency (corporate, large enterprise, medium enterprises, small enterprises, MES, revolving and non-revolving consumer and mortgage for housing)."

Article Thirteenth.- Amend Circular B-2145-2005, F-485-2005, CM-332-2005, CR-201-2005, EAF-229-2005 and EDPYME-0117-2005, which approves the Complementary Provisions on the Administration of Credit Exchange Risk, in accordance with the following:

1. Every reference to Resolution SBS No. 808-2003 is replaced by the Regulation for the Evaluation and Classification of the Debtor and the Requirement of Provisions.

2. Every reference to commercial loans or to the commercial portfolio is replaced by corporate loans, loans to large enterprises and loans to medium-sized enterprises.

Article Fourteenth.- Amend the Accounting Manual for Companies of the Financial System, in accordance with the Annex attached to this Resolution, which is published on the institutional electronic Portal (www.sbs.gob.pe), in accordance with the provisions of Supreme Decree No. 001-2009-JUS.

Article Fifteenth.- This Resolution enters into force as of the day following its publication in the Official Gazette "El Peruano", except for Articles Tenth, Eleventh, Twelfth, Thirteenth and Fourteenth, which enter into force as of the information corresponding to July 2010.

Register, communicate and publish.

FELIPE TAM FOX
Superintendent of Banking, Insurance and
Private Administrators of Pension Funds