SBS Resolution No. 3212-2023: Amending the Subordinated Debt Regulation applicable to Financial System Companies, the Regulation for the Computation of Capital Instruments in the Effective Equity of Financial System Companies, the Regulation for the Evaluation and Classification of the Debtor and the Requirement of Provisions, and the Regulation of Financing Contracts with Credit Portfolio Guarantee

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Lima, September 27, 2023

S.B.S. Resolution
No. 3212-2023

The Superintendent of Banking, Insurance and
Private Administrators of Pension Funds

WHEREAS:

That, by SBS Resolution No. 3950-2022, the Subordinated Debt Regulation applicable to Financial System Companies was approved and Annex No. 12-II "Control of Subordinated Debt" of Chapter V "Complementary Information" of the Accounting Manual for Financial System Companies (hereinafter, Accounting Manual) was replaced, establishing that subordinated debt issued by financial system companies that is acquired by the State within the framework of Decreto de Urgencia No. 037-2021 and its amendments, is considered computable in common equity tier 1 as long as the State's participation in said companies lasts;

That, by SBS Resolution No. 3951-2022, the Regulation for the Computation of Reserves, Profits, Donations and Capital Instruments in the Effective Equity of Financial System Companies was approved and Annex No. 12-I "Control of Capital Instruments" of Chapter V "Complementary Information" of the Accounting Manual was replaced, establishing that preferred shares issued by financial system companies that are acquired by the State within the framework of Decreto de Urgencia No. 037-2021 and its amendments, are considered computable in common equity tier 1 as long as the State's participation in said companies lasts;

That, by Decreto de Urgencia No. 013-2023, the new Program for the Patrimonial Strengthening of Specialized Microfinance Institutions was created, with the purpose of promoting the patrimonial strengthening of specialized microfinance institutions, under which the temporary participation of the State in the share capital of Municipal Savings and Loan Associations and the temporary purchase by the State of subordinated debt instruments of private specialized microfinance institutions is permitted;

That, it is necessary to modify the Subordinated Debt Regulation applicable to Financial System Companies and the Regulation for the Computation of Reserves, Profits, Donations and Capital Instruments in the Effective Equity of Financial System Companies, as well as the notes of Annex No. 12-I and Annex No. 12-II of the Accounting Manual, to state that preferred shares and subordinated debt instruments issued by financial system companies acquired by the State within the framework of Decreto de Urgencia No. 013-2023 are considered computable in common equity tier 1 as long as the State's participation in said companies lasts 1;

That, by SBS Resolution No. 3952-2022, Report No. 3 "Effective Equity" of Chapter V "Complementary Information" of the Accounting Manual was replaced to incorporate the modifications introduced by Decreto Legislativo No. 1531 regarding the composition of effective equity;

That, it is necessary to incorporate clarifications in Report No. 3 regarding the amounts that must be deducted from effective equity corresponding to investments in capital instruments and subordinated debt issued by financial system or insurance system companies of the country or abroad, as well as investments in capital instruments and subordinated debt issued by companies with which financial statements must be consolidated;

That, the notes of Report No. 13 "Control of global and individual limits applicable to financial system companies" and Report No. 21 "Financings to related parties of the company" of Chapter V "Complementary Information" of the Accounting Manual are not aligned regarding the period of effective equity that must be considered in said reports for the calculation of the limit referred to in article 202 of the General Law of the Financial System and Insurance System and Organic Law of the Superintendency of Banking and Insurance – Law No. 26702 and its amendments (hereinafter, General Law);

That, in that sense, it is necessary to modify the notes of Report No. 21 in order to preserve consistency between said report and Report No. 13 regarding the calculation of the limit referred to in article 202 of the General Law, to facilitate the adequate management of said limit, by allowing entities to manage compliance with the limit based on the same defined effective equity;

That, by SBS Resolution No. 2368-2023, modifications were made to the Regulation for the Evaluation and Classification of the Debtor and the Requirement of Provisions (hereinafter, the Regulation), establishing new definitions of the types of credits;

That, it is necessary to make modifications to the definition of non-retail debtor of the Regulation in order to align it with the entry into force of the new definitions of the types of credits;

That, by SBS Resolution No. 1027-2001 and its amendments, the Regulation of Financing Contracts with Credit Portfolio Guarantee was approved, with the purpose of regulating the execution of financing contracts in which it is agreed that, in support of said financings, financial system companies must assign their credit portfolio or in some way dispose of it, in favor of the entities that granted them such financings, or in favor of third parties; and that said norm has the purpose of preventing that, through said contracting mechanism, the order of priority established in article 117 of the General Law can be altered, as well as that the provisions of numeral 2 of article 106 of the General Law are infringed, which provides that the intervention of a financial system company determines the suspension of its operations;

That, by Decreto Legislativo No. 1531, articles 103 and 114 of the General Law were modified and article 28-A was incorporated, establishing that financial system companies not authorized to capture public deposits are not governed by intervention or liquidation regimes, but are subject to revocation of the certificate of authorization of operation;

That, in that sense, it is considered necessary to modify the scope of the Regulation of Financing Contracts with Credit Portfolio Guarantee, in order to exclude from its scope of application the Credit Companies and Financial Leasing Companies, as they are financial system companies not authorized to capture public deposits, and to specify that the companies that make up state banking are included in the scope of said Regulation;

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

In use of the powers conferred in numerals 7, 9 and 13 of article 349 of the General Law, and based on the exception conditions provided in article 14 of Supreme Decree No. 001-2009-JUS and its amendments;

RESOLVES:

Article One.- To replace the Sole Final Complementary Provision of the Subordinated Debt Regulation applicable to Financial System Companies, approved by SBS Resolution No. 3950-2022, with the following:

"Sole.- Subordinated debt issued by financial system companies that is acquired by the State within the framework of Decreto de Urgencia No. 037-2021 and its amendments, and Decreto de Urgencia No. 013-2023

Subordinated debt issued by financial system companies that is acquired by the State within the framework of Decreto de Urgencia No. 037-2021 and its amendments, and Decreto de Urgencia No. 013-2023, is considered computable in common equity tier 1 as long as the State's participation in said companies lasts. The amount computable in common equity tier 1 will be the outstanding principal balance of the subordinated debt held by the State as of the report cut-off date."

Article Two.- To replace the Second Final Complementary Provision of the Regulation for the Computation of Reserves, Profits, Donations and Capital Instruments in the Effective Equity of Financial System Companies, approved by SBS Resolution No. 3951-2022, with the following:

"Second.- Preferred shares issued by financial system companies that are acquired by the State within the framework of Decreto de Urgencia No. 037-2021 and its amendments, and Decreto de Urgencia No. 013-2023

Preferred shares issued by financial system companies that are acquired by the State within the framework of Decreto de Urgencia No. 037-2021 and its amendments, and Decreto de Urgencia No. 013-2023, are considered computable in common equity tier 1 as long as the State's participation in said companies lasts. The amount computable in common equity tier 1 will be the outstanding repurchase balance of the preferred shares held by the State as of the report cut-off date."

Article Three.- To replace literal l) of numeral 2 "Definitions" of Chapter I "Concepts and principles for the evaluation and classification of the debtor and the requirement of provisions" of the Regulation for the Evaluation and Classification of the Debtor and the Requirement of Provisions, approved by SBS Resolution No. 11356-2008 and its amendments, according to the following effective dates:

1. From the effective date of this resolution:

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

2. From October 1, 2024:

"l. Non-retail debtor: Legal person or legal entity that has direct or indirect credits to corporations, large companies or medium-sized companies."

This article does not apply to Cooperativas de Ahorro y Crédito No Autorizadas a Captar Recursos del Público (Coopac) level 2 with total assets greater than 32,200 UIT nor to level 3 Coopac.

Article Four.- To modify Chapter V of the Accounting Manual for Financial System Companies, approved by SBS Resolution No. 895-98 and its amending and complementary norms, in accordance with the Annex attached to this Resolution, which is published on the Institutional Portal (www.sbs.gob.pe), in accordance with the provisions of Supreme Decree No. 001-2009-JUS and its amendments.

Article Five.- To replace article 1 of the Regulation of Financing Contracts with Credit Portfolio Guarantee, approved by SBS Resolution No. 1027-2001 and its amendments, in accordance with the following:

"Article 1.- This Regulation establishes the provisions to which multiple operations companies included in numerals 1, 2, 3, 4 and 7 of literal A of article 16 of the General Law, Banco de la Nación, Corporación Financiera de Desarrollo (COFIDE), Banco Agropecuario and Fondo MIVIVIENDA S.A., hereinafter companies, shall be subject, when they enter into financing contracts guaranteed with their credit portfolio."

Article Six.- This resolution enters into force from the day following its publication in the Official Gazette El Peruano, except for the provisions of numeral 2 of article three, as well as the provisions of article four, which enters into force for the submission of information corresponding to the month of October 2023.

Register, communicate and publish

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

1 Amended by Errata requested by Oficio No. 56700-2023-SBS, published on October 4, 2023.