2023-11-28 | NRP-44Added · Updated
Banks, foreign bank branches, and specific state-owned entities in El Salvador must maintain a 12% equity-to-weighted-assets ratio, or 14.5% for the first three years of operation. Banks exceeding 75% of equity in foreign credits must meet minimum capital coefficients by risk band, while all subjects must keep equity at least 7% of total liabilities and meet minimum subscribed capital. Monthly equity positions and weekly capital calculations must be reported to the Superintendency using Annexes 1 and 2, with monthly reports due by the fifth business day (tenth for June/December) and weekly reports by the second business day. Non-compliance is sanctioned under the Law on Supervision and Regulation of the Financial System.
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FINANCIAL ENTITIES
Approval: 28/11/2023
Validity: 1/01/2024
THE COMMITTEE OF STANDARDS OF THE CENTRAL RESERVE BANK OF EL SALVADOR,
CONSIDERING:
I. That Article 20, fourth paragraph, of the Banks Law, establishes that, during the first three years of operation of a bank, the ratio between its equity fund and the sum of its weighted assets referred to in Article 41 of this law, shall be at least fourteen point five percent at the end of said period, the Superintendency will determine whether or not it is appropriate to reduce the referred percentage to twelve percent.
II. That Article 41, first paragraph, of the Banks Law, establishes that, in order to constantly maintain its solvency, banks must present at all times a ratio of at least twelve percent between their equity fund and the sum of their weighted assets, net of depreciation, reserves, and sanitation provisions.
III. That Article 25, first paragraph, of the Law of Cooperative Banks and Savings and Credit Societies, establishes that in order to maintain constant solvency, cooperative banks must present at all times a ratio of at least twelve percent between their equity fund and the sum of their weighted assets, net of depreciation, reserves, and sanitation provisions.
IV. That Article 25, sixth paragraph, of the Law of Cooperative Banks and Savings and Credit Societies, establishes that, during the first three years of operation of a cooperative bank, the ratio between its equity fund and the sum of its weighted assets referred to in this article shall be at least fourteen point five percent. At the end of said period, the Superintendency will determine whether or not it is appropriate to reduce the referred percentage to twelve percent.
V. That Article 155 of the Law of Cooperative Banks and Savings and Credit Societies, establishes that savings and credit societies shall be subject to the provisions of the Banks Law, except as provided in Book IV of the referred Law.
VI. That Article 2, first paragraph, of the Law on Supervision and Regulation of the Financial System, establishes that the Financial Supervision and Regulation System has the objective of preserving the stability of the financial system and ensuring its efficiency and transparency, as well as ensuring the security and solidity of the members of the financial system in accordance with what this Law, other applicable laws, regulations, and technical standards issued for this purpose establish, all in concordance with international best practices on the matter.
VII. That Article 99, third paragraph, letter a), of the Law on Supervision and Regulation of the Financial System, establishes that it is the responsibility of the Committee of Standards of the Central Reserve Bank of El Salvador to approve technical standards, instructions, and provisions that the laws regulating the supervised entities establish must be issued to facilitate their application, especially those related to solvency requirements, liquidity, provisions, reserves, classification of risky assets, criteria to establish the need for consolidation, good corporate governance practices, information transparency, and on any other aspect inherent to risk management by the supervised entities.
VIII. That in accordance with Article 101, fourth paragraph, of the Law on Supervision and Regulation of the Financial System, the powers to approve, modify, and repeal technical standards that must be complied with by the members of the financial system and other supervised entities are transferred to the Central Reserve Bank of El Salvador.
THEREFORE,
in virtue of the regulatory powers conferred by Article 99 of the Law on Supervision and Regulation of the Financial System,
AGREES to issue the following:
TECHNICAL STANDARDS FOR THE APPLICATION OF THE CAPITAL REQUIREMENT FOR FINANCIAL ENTITIES
CHAPTER I
OBJECT, SUBJECTS, AND TERMS
Object
Art. 1.- These Standards have as their objective to establish the provisions that allow the calculation of the capital requirements for the subjects obliged to comply with them, in accordance with applicable laws.
Subjects
Art. 2.- The subjects obliged to comply with the provisions established in these Standards are:
a) Banks constituted in El Salvador; b) Subsidiaries established abroad of banks constituted in El Salvador; c) Branches of foreign banks established in the country; d) Subsidiaries and joint investment societies, national, of banks constituted in El Salvador; e) Societies in which an exclusive-purpose holding company is a minority investor, when those do not have regulations on this matter in another Law; f) Cooperative banks;
g) Federations formed by cooperative banks and also by savings and credit societies; h) Savings and credit societies; i) Banco de Fomento Agropecuario; and j) Banco Hipotecario, S.A.
Terms
Art. 3.- For the purposes of these Standards, the terms indicated below have the following meaning:
a) Central Bank: Central Reserve Bank of El Salvador; b) Obliged Subjects: Subjects obliged to comply with these Standards; and c) Superintendency: Superintendency of the Financial System.
CHAPTER II
DETERMINATION OF THE EQUITY FUND
Equity Fund
Art. 4.- The equity fund will be the sum of Primary Capital plus Supplementary Capital, deducting from these, when applicable:
a) The value of the participation in the capital of subsidiaries located abroad; b) The value of participations in the capital of subsidiaries and joint investment societies, in accordance with Articles 24 of the Banks Law and 12 and 13 of the Law of Cooperative Banks and Savings and Credit Societies; c) Additional resources that under any form the obliged subjects provide to their subsidiaries abroad, as well as guarantees, sureties, and bonds issued to respond for the obligations of their subsidiaries located abroad; and d) Other participations in the capital of any society.
Primary Capital
Art. 5.- The components of primary capital are:
a) Subscribed social capital; b) The legal reserve; and c) Other capital reserves, arising from received profits.
Supplementary Capital
Art. 6.- The components of supplementary capital are:
a) Results of previous exercises, on which no decision has been taken; b) Undistributable profits referred to in the first paragraph of Article 40 of the Banks Law and the first paragraph of Article 21 of the Law of Cooperative Banks and Savings and Credit Societies, according to the type of entity;
c) Fifty percent (50%) of the profits of the current exercise, net of the provision for Income Tax; d) Seventy-five percent (75%) of the Surplus from revaluation of fixed assets authorized by the Superintendency, as follows:
i) For banks: from requests received until January 31, 1998; and ii) For cooperative banks, federations, and savings and credit societies: from requests received until December 31, 2001. e) Fifty percent (50%) of voluntary sanitation reserves, which will not be subtracted from the loan portfolio for purposes of weighted assets; f) Convertible bonds, when the Superintendency by general resolution has authorized that they form part of the supplementary capital, in accordance with the Banks Law; g) Subordinated debt for five or more years, up to fifty percent (50%) of the value of Primary Capital. For purposes of the amount computable in the equity fund, this will be calculated as follows:
i) Before five years to maturity, up to the value of the loan balance. ii) From the beginning of the five years to maturity, the debt balance decreased by 20% annually cumulative, as follows:
5.0 years before maturity: 80%
4.0 years before maturity: 60%
3.0 years before maturity: 40%
2.0 years before maturity: 20%
Last year before maturity: 0% h) Loans convertible into shares, as follows:
i) For banks: when the term is greater than one year. ii) For cooperative banks, federations, and savings and credit societies: when the term does not exceed one year.
From the sum of all the previous components, the value of accumulated losses and the current exercise loss, if any, must be deducted. For purposes of determining the equity fund, Supplementary Capital will be accepted up to a sum equal to Primary Capital.
CHAPTER III
CAPITAL REQUIREMENTS
Regarding Weighted Assets
Art. 7.- Obliged subjects must present, at all times, a ratio between their equity fund and the sum of their weighted assets of at least twelve percent.
During the first three years of operation of a new obliged subject, the capital requirement regarding weighted assets will be fourteen and a half percent (14.5%). At the end of that period, the Superintendency will determine whether or not to reduce it to twelve percent (12.0%). If the Superintendency's resolution is that the bank must continue with the fourteen point five percent (14.5%) percentage, this will be for a maximum period of three years.
Weighting of Assets and Contingent Rights
Art. 8.- The weighting of assets, contingent rights, net of depreciation, reserves, and sanitation provisions, will be carried out as follows:
Without weighting:
a) Cash availability, remittances in transit shall not be included in this concept; b) Money deposits in the Central Reserve Bank of El Salvador; c) Investments in securities issued or guaranteed by the State, the Central Reserve Bank of El Salvador, or the Deposit Guarantee Institute; d) Stock market investments made in securities issued or guaranteed by the State, the Central Reserve Bank, or the Deposit Guarantee Institute; e) Assets and contingencies deducted from the equity fund, which are mentioned in letters a), b), c), and d) of Article 4 of these Standards; (1) (2) f) Deposits and high-liquidity, low-risk securities, which constitute the liquidity reserve referred to in Chapter VI of Title II of the Banks Law and Chapter III, Title I of Book Two of the Law of Cooperative Banks and Savings and Credit Societies; g) Credits, guarantees, sureties, and bonds, fully guaranteed with money deposits in the same entity; h) Assets under fiduciary administration that are constituted as public benefit trusts and those constituted with the purpose of guaranteeing the fulfillment of payment obligations previously contracted or to be contracted, by the settlor with a third party; up to the amount of their net assets; (3) i) Credits guaranteed with resources from the Salvadoran Guarantee Fund in the proportion in which they have been guaranteed, in accordance with what is established in Article 80 of the Law of the Development Bank of the Republic of El Salvador; and (3) j) Availability in Pay. (3)
Weighted with twenty percent (20%):
a) Funds in transit for local and foreign remittances; and b) Assets under fiduciary administration, up to the amount of their net assets that do not meet the conditions mentioned in letter h) of numeral 1 of this article.
Weighted with fifty percent (50%):
a) Loans guaranteed by other local obliged subjects; b) Credits granted to other obliged subjects, except for loans convertible into shares, which will be weighted at one hundred percent; c) Money deposits in other local obliged subjects; d) Guarantees, sureties, and bonds that are not fully guaranteed with money deposits; e) The value of letters of credit, net of guarantee deposits, prepayments, and provisions; f) Long-term credits granted to middle and low-income families for the acquisition of housing, fully guaranteed with a duly registered mortgage. Long-term credits are considered those granted for five or more years term, to middle and low-income families for the acquisition of housing, and whose granted amount does not exceed two hundred fifty thousand dollars (US$ 250,000.00); (2) g) Loans guaranteed by Salvadoran reciprocal guarantee societies; and h) Other payment commitments on behalf of third parties.
Weighted between zero and one hundred fifty percent:
Investments in securities issued by states or foreign central banks according to the issuer's country risk rating, as follows:
Risk Category | AAA to AAA+ | BBB+ to BBB- | BB+ to BB- | B- and below | Unclassified Risk Weighting | 0% | 20% | 50% | 100% | 150%
For the equivalence of country risk categories issued by different Risk Classifiers, the table described in numeral 7 of Section VI Constitution of Reserves for Country Risk of the Accounting Manual for Deposit-Collecting Institutions and Controlling Society (NCF-01) will be used.
Risk Category | AAA to A- | BBB+ to BBB-
Risk Weighting | 20% | 50%
The classification of first-line banks is regulated in the "Technical Standards for Determining First-Line Foreign Financial Entities" (NRP-80), issued by the Central Reserve Bank of El Salvador through its Committee of Standards. (1)
Additional Capital Requirement
Art. 9.- Banks that, in accordance with Article 197 of the Banks Law, request authorization from the Superintendency to have credits with non-residents or to be invested abroad, for an amount greater than seventy-five percent (75%) of the equity fund, must previously and at all times show minimum capital coefficients according to the risk band they assume, as follows:
Band of credit operations ratio in other countries | Minimum Capital Requirement from year 2005 onwards More than 75% and up to 100% | 12.70% More than 100% and up to 125% | 13.40% More than 125% and up to 150% | 14.00%
Requirement Regarding Liabilities and Contingent Commitments Art. 10.- The equity fund of the subjects obliged to its compliance shall not be less than seven percent (7%) of their total obligations or liabilities with third parties.
Minimum Equity Fund
Art. 11.- In no case shall the equity fund of an obliged subject be less than the minimum required subscribed social capital, which is determined in accordance with the Banks Law or the Law of Cooperative Banks and Savings and Credit Societies, according to the type of entity.
CHAPTER IV
CALCULATION DATE AND REPORTING TO THE SUPERINTENDENCY
Art. 12.- Obliged subjects must establish at the last day of each month, the position of their equity fund and remit it to the Superintendency within the first five business days of the following month, according to models presented in Annex No. 1 and No. 2, signed by the manager or whoever holds an equivalent position; except for those corresponding to the months of June and December of each year, which will be within the first ten business days of the immediate subsequent month.
Additionally, obliged subjects must calculate the capital requirement on the last business day of each week, except when this corresponds to the last day of the month; said calculation must be remitted to the Superintendency in the first two business days of each week.
The deadlines mentioned in the previous provision do not constitute an exception to inform about equity fund insufficiencies, and if such insufficiency occurs, it must be reported to the Superintendency with a mention of the details of the measures and commitments they consider necessary to remedy the deficiency.
Art. 13.- Obliged subjects must keep in their files for a period of no less than one year, the documents and off-balance sheet information used for the calculation of the capital requirement.
Art. 14.- The Superintendency may request the calculation of capital requirements at any date it deems convenient.
Art. 15.- The Superintendency may modify the weighting of trusts, based on the assets in which the corresponding equity has been invested.
Art. 16.- Articles 9 and 15 above do not apply to the obliged subjects described in letters f), g), and h) of Article 2 of these Standards. (1)
CHAPTER V
OTHER PROVISIONS AND VALIDITY
Art. 17.- Investments in securities issued by the Social Fund for Housing between December 16, 1999, and December 31, 2000, will have zero weighting, for purposes of calculating the equity fund, provided they are fully guaranteed with mortgage portfolio and that the investment in the mentioned securities is in addition to investments as of June 30, 1999, in securities issued by said Fund.
The aforementioned investments, in no case, may exceed fifty percent (50%) of the Equity Fund of the respective bank.
Art. 18.- The calculation and capital requirement for exclusive-purpose holding companies and for financial conglomerates as a whole, is regulated in the "Technical Standards for the Application of the Capital Requirement to Financial Conglomerates" (NRP-62). (1)
Sanctions
Art. 19.- Non-compliance with the provisions contained in these Standards will be sanctioned in accordance with what is established in the Law on Supervision and Regulation of the Financial System.
Repeal
Art. 20.- These Standards repeal the "Standards for the application of the capital requirement to the entities regulated by the Banks Law and the Law of Cooperative Banks and Savings and Credit Societies" (NPB3-04), approved on March 16, 2000, in Session No. CD-15/2000, by the Superintendency of the Financial System, whose Organic Law was repealed by Legislative Decree No. 592, which contains the Law on Supervision and Regulation of the Financial System, published in the Official Journal No. 23, Volume 390, on February 2, 2011.
Transitory
Art. 20-A.- From the entry into force of the modifications approved by the Committee of Standards of the Central Reserve Bank of El Salvador in Session No. 11/2024, of December 19, 2024, entities will have a period of one month to make the corresponding adjustments for their implementation. (1)
Art. 20-B.- From the entry into force of the modifications approved by the Committee of Standards of the Central Reserve Bank of El Salvador in Session No. 02/2026, of February 26, 2026, entities will have until March 31, 2026, to make the corresponding adjustments for their implementation. (3)
Unforeseen Aspects
Art. 21.- Aspects not provided for in regulatory matters in these Standards will be resolved by the Central Bank through its Committee of Standards.
Validity
Art. 22.- These Standards will enter into force as of January 1, two thousand twenty-four.
Modifications:
(1) Modifications in articles 8, 16, 18, and Annex No. 2 and incorporation of article 20-A, approved by the Central Bank through its Committee of Standards, in Session No. CN-11/2024, of date nineteen of December of two thousand twenty-four, with validity from January 3, two thousand twenty-five. (2) Modifications in article 8 and Annex No. 2, approved by the Central Bank through its Committee of Standards, in Session No. CN-10/2025, of date 17 of December of two thousand twenty-five, with validity from January 2, two thousand twenty-six. (3) Modifications in article 8 and in Annex No. 2, and incorporation of article 20-B, approved by the Central Bank through its Committee of Standards, in Session No. CN-02/2026, of date 26 of February of two thousand twenty-six, with validity from March 13, two thousand twenty-six.
FINANCIAL ENTITIES
Approval: 28/11/2023
Validity: 1/01/2024
Annex No. 1
REPORT OF THE CALCULATION OF CAPITAL REQUIREMENTS (In thousands of US$)
Entity: _______________________________________ Reference Date:
I. EQUITY FUND
FINANCIAL ENTITIES
Approval: 28/11/2023
Validity: 1/01/2024
Annex No. 2
ENTITY: _____________________________________________________________________________
CALCULATION OF CAPITAL REQUIREMENT AT ________ OF ___________ OF ______ (IN THOUSANDS OF US$)
ENTITIES
Approval: 28/11/2023
Validity: 1/01/2024
Annex No. 2
ENTITY: _____________________________________________________________________________
CALCULATION OF THE CAPITAL FUND REQUIREMENT AT ________ OF ___________ OF ______ (IN THOUSANDS OF US$)
account code
Contingent assets and rights subject to risk weighting balance weighting factor weighted balance
1110 CONTINGENT ASSETS AND RIGHTS (3)
01 CASH
0101 Head office - ML 0.0%
0102 Head office – ME 0.0%
0201 Agencies – ML 0.0%
0202 Agencies - ME 0.0%
0301 Petty cash – ML 0.0%
0302 Petty cash - ME 0.0%
0401 Local remittances in transit – ML 20.0% 0402 Local remittances in transit – ME 20.0% 9701 Others – ML 100.0% 9702 Others – ME 100.0% 02 DEPOSITS AT THE BCR 0.0% 03 DOCUMENTS SUBJECT TO OTHER BANKS 0100 Pending compensations 20.0% 0200 Rejections for compensation 100.0% 04 DEPOSITS AT LOCAL BANKS 50.0%
ENTITIES
Approval: 28/11/2023
Validity: 1/01/2024
Annex No. 2
ENTITY: _____________________________________________________________________________
CALCULATION OF THE CAPITAL FUND REQUIREMENT AT ________ OF ___________ OF ______ (IN THOUSANDS OF US$)
account code
Contingent assets and rights subject to risk weighting balance weighting factor weighted balance
0301
0302
9901
Remittances in transit – ML
Remittances in transit – ME
Interest and other receivables – ML
20.0%
20.0%
100.0%
9902 Interest and other receivables – ME 100.0% 07 RESTRICTED DEPOSITS (1) 0101 Deposits at the BCR-ML (1) 0.0% 0102 Deposits at the BCR-ME (1) 0.0% 0201 Deposits at local banks-ML (1) 50.0%
ENTITIES
Approval: 28/11/2023
Validity: 1/01/2024
Annex No. 2
ENTITY: _____________________________________________________________________________
CALCULATION OF THE CAPITAL FUND REQUIREMENT AT ________ OF ___________ OF ______ (IN THOUSANDS OF US$)
account code
Contingent assets and rights subject to risk weighting balance weighting factor weighted balance
02 REPURCHASE OPERATIONS WITH STATE ENTITIES 0.0% 03 REPURCHASE OPERATIONS WITH PRIVATE COMPANIES 100.0% 04 REPURCHASE OPERATIONS WITH INDIVIDUALS 100.0% 05 REPURCHASE OPERATIONS WITH LOCAL BANKS 100.0% 06 REPURCHASE OPERATIONS WITH OTHER ENTITIES OF THE FINANCIAL SYSTEM 100.0% 07 STOCK MARKET OPERATIONS 0101 Issued by the Central Reserve Bank – ML 0.0% 0102 Issued by the Central Reserve Bank – ME 0.0% 0201 Issued by state entities – ML 0.0% 0202 Issued by state entities – ME 0.0% 0301 Issued by private companies – ML 100.0% 0302 Issued by private companies – ME 100.0% 0501 Issued by banks – ML 100.0% 0502 Issued by banks – ME 100.0% 0601 Issued by other entities of the Financial System – ML 100.0% 0602 Issued by other entities of the Financial System – ME 100.0% 0701 Issued by foreign entities – ML 100.0% 0702 Issued by foreign entities – ME 100.0% 0801 Issued by the Deposit Guarantee Institute -ML 0.0% 0802 Issued by the Deposit Guarantee Institute -ME 0.0% 0901 Issued by securitization funds-ML 100.0% 0902 Issued by securitization funds-ME 100.0% 08 REPURCHASE OPERATIONS WITH FOREIGN BANKS 100.0% 1130 AT FAIR VALUE WITH CHANGES IN RESULTS (VRCR) 01 0101 MAINTAINED FOR TRADING DEBT OTHER THAN DERIVATIVES Issued by the BCR – ML 0.0% 0102 Issued by the BCR – ME 0.0% 0201 Issued by the State – ML 0.0%
ENTITIES
Approval: 28/11/2023
Validity: 1/01/2024
Annex No. 2
ENTITY: _____________________________________________________________________________
CALCULATION OF THE CAPITAL FUND REQUIREMENT AT ________ OF ___________ OF ______ (IN THOUSANDS OF US$)
account code
Contingent assets and rights subject to risk weighting balance weighting factor weighted balance
0202 Issued by the State – ME 0.0%
0301 Issued by private companies – ML 100.0% 0302 Issued by private companies – ME 100.0% 0501 Issued by banks – ML 100.0% 0502 Issued by banks – ME 100.0% 0601 Issued by other entities of the Financial System – ML 100.0% 0602 Issued by other entities of the Financial System – ME 100.0% 0701 Issued by foreign institutions – ML
ENTITIES
Approval: 28/11/2023
Validity: 1/01/2024
Annex No. 2
ENTITY: _____________________________________________________________________________
CALCULATION OF THE CAPITAL FUND REQUIREMENT AT ________ OF ___________ OF ______ (IN THOUSANDS OF US$)
account code
Contingent assets and rights subject to risk weighting balance weighting factor weighted balance
0201 Swaps-ML 100.0%
0202 Swaps-ME 100.0%
0301 Options-ML 100.0%
0302 Options-ME 100.0%
03
0101
0102
0201
OF DEBT DESIGNATED AT FAIR VALUE WITH CHANGES IN RESULTS Issued by the BCR – ML Issued by the BCR – ME Issued by the State – ML 0.0% 0.0% 0.0% 0202 Issued by the State – ME 0.0% 0301 Issued by private companies – ML 100.0% 0302 Issued by private companies – ME 100.0% 0501 Issued by banks – ML 100.0% 0502 Issued by banks – ME 100.0% 0601 Issued by other entities of the Financial System – ML 100.0% 0602 Issued by other entities of the Financial System – ME 100.0% 0701 Issued by foreign institutions – ML
ENTITIES
Approval: 28/11/2023
Validity: 1/01/2024
Annex No. 2
ENTITY: _____________________________________________________________________________
CALCULATION OF THE CAPITAL FUND REQUIREMENT AT ________ OF ___________ OF ______ (IN THOUSANDS OF US$)
account code
Contingent assets and rights subject to risk weighting balance weighting factor weighted balance
0802 Issued by the Deposit Guarantee Institute - ME 0.0% 9801 Adjustments for fair value fluctuation-ML 100.0% 9802 Adjustments for fair value fluctuation-ME 100.0% 9901 Interest and other receivables – ML 100.0% 9902 Interest and other receivables – ME 100.0% 1131 AT FAIR VALUE WITH CHANGES IN OTHER COMPREHENSIVE INCOME (VRORI) 01 DEBT REPRESENTATIVE INSTRUMENTS 0101 Issued by the BCR – ML 0.0% 0102 Issued by the BCR – ME 0.0% 0201 Issued by the State – ML 0.0% 0202 Issued by the State – ME 0.0% 0301 Issued by private companies – ML 100.0% 0302 Issued by private companies – ME 100.0% 0501 Issued by banks – ML 100.0% 0502 Issued by banks – ME 100.0% 0601 Issued by other entities of the Financial System – ML 100.0% 0602 Issued by other entities of the Financial System – ME 100.0% 0701 Issued by foreign institutions – ML
ENTITIES
Approval: 28/11/2023
Validity: 1/01/2024
Annex No. 2
ENTITY: _____________________________________________________________________________
CALCULATION OF THE CAPITAL FUND REQUIREMENT AT ________ OF ___________ OF ______ (IN THOUSANDS OF US$)
account code
Contingent assets and rights subject to risk weighting balance weighting factor weighted balance
ENTITIES
Approval: 28/11/2023
Validity: 1/01/2024
Annex No. 2
ENTITY: _____________________________________________________________________________
CALCULATION OF THE CAPITAL FUND REQUIREMENT AT ________ OF ___________ OF ______ (IN THOUSANDS OF US$)
account code
Contingent assets and rights subject to risk weighting balance weighting factor weighted balance
0301 Issued by private companies – ML 100.0% 0302 Issued by private companies – ME 100.0% 0501 Issued by banks – ML 100.0% 0502 Issued by banks – ME 100.0% 0601 Issued by other entities of the Financial System – ML 100.0% 0602 Issued by other entities of the Financial System – ME 100.0% 0701 Issued by foreign institutions – ML
ENTITIES
Approval: 28/11/2023
Validity: 1/01/2024
Annex No. 2
ENTITY: _____________________________________________________________________________
CALCULATION OF THE CAPITAL FUND REQUIREMENT AT ________ OF ___________ OF ______ (IN THOUSANDS OF US$)
account code
Contingent assets and rights subject to risk weighting balance weighting factor weighted balance
0202 Issued by the State – ME 0.0%
0301 Issued by private companies – ML 100.0% 0302 Issued by private companies – ME 100.0% 0501 Issued by banks – ML 100.0% 0502 Issued by banks – ME 100.0% 0601 Issued by other entities of the Financial System – ML 100.0% 0602 Issued by other entities of the Financial System – ME 100.0% 0701 Issued by foreign institutions – ML
ENTITIES
Approval: 28/11/2023
Validity: 1/01/2024
Annex No. 2
ENTITY: _____________________________________________________________________________
CALCULATION OF THE CAPITAL FUND REQUIREMENT AT ________ OF ___________ OF ______ (IN THOUSANDS OF US$)
account code
Contingent assets and rights subject to risk weighting balance weighting factor weighted balance
0102 Maintained for trading other than derivatives – ME 100.0% 0201 Designated at fair value with changes in results – ML 100.0% 0202 Designated at fair value with changes in results – ME 100.0% 9901 Interest and other receivables – ML 100.0% 9902 Interest and other receivables – ME 100.0% 02 AT FAIR VALUE WITH CHANGES IN OCI 0101 Debt representative instruments – ML 100.0% 0102 Debt representative instruments – ME 100.0% 9901 Interest and other receivables – ML 100.0% 9902 Interest and other receivables – ME 100.0% 03 AT AMORTIZED COST 0101 Debt instruments with quoted price – ML 100.0% 0102 Debt instruments with quoted price – ME 100.0% 0201 Debt instruments without quoted price – ML 100.0% 0202 Debt instruments without quoted price – ME 1000% 9901 Interest and other receivables – ML 100.0% 9902 Interest and other receivables – ME 100.0% 113TVFSV * FSV SECURITIES (ACCORDING TO ART. 18 of these Standards) -100.0% 113ATVF GUARANTEE ISSUED BY TVFICAFE -50.0% 1141 LOANS AGREED UP TO ONE YEAR TERM 02 LOANS TO STATE ENTITIES 100.0% 03 LOANS TO PRIVATE COMPANIES 100.0% 04 LOANS TO INDIVIDUALS 100.0% 05 LOANS TO BANKS 0101 To cover cash deficit – ML 50.0% 0102 To cover cash deficit – ME 50.0% 0301 Loans convertible into shares – ML 100.0% 0302 Loans convertible into shares – ME 100.0%
ENTITIES
Approval: 28/11/2023
Validity: 1/01/2024
Annex No. 2
ENTITY: _____________________________________________________________________________
CALCULATION OF THE CAPITAL FUND REQUIREMENT AT ________ OF ___________ OF ______ (IN THOUSANDS OF US$)
account code
Contingent assets and rights subject to risk weighting balance weighting factor weighted balance
0401 Original grants – ML 50.0%
0402 Original grants – ME 50.0%
9901 Interest and other receivables – ML 100.0% 9902 Interest and other receivables – ME 100.0% 06 LOANS TO OTHER ENTITIES OF THE SYSTEM 100.0% 114106POSO LOANS TO OTHER LOCAL OBLIGATED SUBJECTS (for Cooperative Banks and SAC) (1) -50.0% 08 LOANS TO NON-DOMICILED COMPANIES 100.0% 99 DISBURSEMENTS AND RECOVERIES TO APPLY 100.0% 1142 LOANS AGREED FOR MORE THAN ONE YEAR TERM 02 LOANS TO STATE ENTITIES 100.0% 03 04 LOANS TO PRIVATE COMPANIES LOANS TO INDIVIDUALS 100.0% 100.0% 05 LOANS TO BANKS (1) 0101 Loans convertible into shares – ML (1) 100.0% 0102 Loans convertible into shares – ME (1) 100.0% 0401 Original grants – ML (1) 50.0% 0402 Original grants – ME (1) 50.0% 9901 Interest and other receivables – ML (1) 100.0% 9902 Interest and other receivables – ME (1) 100.0% 06 LOANS TO OTHER ENTITIES OF THE SYSTEM 100.0% 114206POSO LOANS TO OTHER LOCAL OBLIGATED SUBJECTS (for Cooperative Banks and SAC (1) -50.0% 08 LOANS TO NON-DOMICILED COMPANIES 100.0% 1142VIVIEN * LOANS TO L. P. GRANTED TO MEDIUM AND LOW INCOME FAM. 5/ -50.0% 1148 OVERDUE LOANS 100.0%\n07 LOANS TO AGENCIES AND SUBSIDIARIES ABROAD -100.0% 1149 PROVISION FOR UNCOLLECTABLE LOANS 01 PROVISION FOR UNCOLLECTABLE LOANS 0101 Provisions by risk category – ML -100.0%
ENTITIES
Approval: 28/11/2023
Validity: 1/01/2024
Annex No. 2
ENTITY: _____________________________________________________________________________
CALCULATION OF THE CAPITAL FUND REQUIREMENT AT ________ OF ___________ OF ______ (IN THOUSANDS OF US$)
account code
Contingent assets and rights subject to risk weighting balance weighting factor weighted balance
0102 Provisions by risk category – ME -100.0% 0201 Provisions for excess of related credits – ML -100.0% 0202 Provisions for excess of related credits – ME -100.0% 0401 Restricted provisions – ML -100.0% 0402 Restricted provisions – ME -100.0% 0501 Provision for portfolio management risk – ML -100.0% 0502 Provision for portfolio management risk – ME -100.0% 0601 Generic provisions – ML -100.0% 0602 Generic provisions – ME -100.0% 0701 Provisions for debtor rating risks – ML -100.0% 0702 Provisions for debtor rating risks – ME -100.0% 0801 Special provisions – ML -100.0% 0802 Special provisions – ME -100.0% 114GDA * LOANS GUARANTEED BY LOCAL BANKS -50.0%
LOANS WITH GUARANTEE FROM RECIPROCAL GUARANTEE SOCIETIES LOANS GUARANTEED BY THE SALVADORAN GUARANTEE FUND /9 -50.0%
ENTITIES
Approval: 28/11/2023
Validity: 1/01/2024
Annex No. 2
ENTITY: _____________________________________________________________________________
CALCULATION OF THE CAPITAL FUND REQUIREMENT AT ________ OF ___________ OF ______ (IN THOUSANDS OF US$)
account code
Contingent assets and rights subject to risk weighting balance weighting factor weighted balance
0502 Balances with national subsidiaries – ME 100.0% 1220 ASSETS RECEIVED IN PAYMENT OR ADJUDICATED 100.0% 3210 03 RESERVES FOR EXTRAORDINARY ASSETS -100.0% 1230 INVENTORY 100.0% 1240 EXPENSES PAID IN ADVANCE 100.0% 1250 ACCOUNTS RECEIVABLE 100.0% 1251 TAXES 100.0% 1259 ESTIMATED LOSS FOR IMPAIRMENT -100.0% 1260 03 PARTICIPATIONS AND OTHER RIGHTS 100.0% 1261 PURCHASED GOODWILL 100.0% 1270 ASSETS MAINTAINED FOR SALE 100.0% 1310 NON-DEPRECIABLE 100.0% 1320 DEPRECIABLE 100.0% 1329 ACCUMULATED DEPRECIATION AND IMPAIRMENT(O) -100.0% 1330 INTANGIBLES 100.0% 1339 ACCUMULATED AMORTIZATION AND IMPAIRMENT -100.0% 2111 99 DEPOSITS AS GUARANTEE FOR CREDIT CARDS -50.0% 2112 03 DEPOSITS AS GUARANTEE FOR CREDIT CARDS -50.0% 4110 CREDIT CARDS 50.0% 4120 GUARANTEES AND BONDS 100.0% 01 0501 Branches, subsidiaries, agencies and foreign banks – ML -100.0% 01 0502 Branches, subsidiaries, agencies and foreign banks - ME -100.0% 02 02 0501 0502 Branches, subsidiaries, agencies and foreign banks - ML Branches, subsidiaries, agencies and foreign banks - ME -100.0% -100.0% 03 0501 Branches, subsidiaries, agencies and foreign banks - ML -100.0% 03 0502 Branches, subsidiaries, agencies and foreign banks - ME -100.0% 04 0501 Branches, subsidiaries, agencies and foreign banks - ML -100.0% 04 0502 Branches, subsidiaries, agencies and foreign banks - ME -100.0%
FINANCIAL ENTITIES
Approval: 28/11/2023
Validity: 1/01/2024
Annex No. 2
ENTITY: _____________________________________________________________________________
CALCULATION OF THE CAPITAL FUND REQUIREMENT AT ________ OF ___________ OF ______ (IN THOUSANDS OF US$)
account code Contingent assets and rights subject to risk weighting balance weighting factor weighted balance
FINANCIAL ENTITIES
Approval: 28/11/2023
Validity: 1/01/2024
Annex No. 2
ENTITY: _____________________________________________________________________________
CALCULATION OF THE CAPITAL FUND REQUIREMENT AT ________ OF ___________ OF ______ (IN THOUSANDS OF US$)
account code Liabilities, future commitments and contingencies subject to risk weighting. balance Weighting factor Weighted Balance 210 FINANCIAL LIABILITIES AT FAIR VALUE WITH CHANGES IN RESULTS (FVCR) 100.0% 2110 CHECKING DEPOSITS 100.0% 2111 AGREED DEPOSITS UP TO ONE YEAR MATURITY 100.0% 2112 AGREED DEPOSITS FOR MORE THAN ONE YEAR MATURITY 100.0% 2113 NEGOTIABLE DEPOSIT CERTIFICATES 100.0% 2114 RESTRICTED AND INACTIVE DEPOSITS 100.0% 2115 OPERATIONS WITH REPURCHASE AGREEMENTS 100.0% 2116 AGREED LOANS UP TO ONE YEAR MATURITY 100.0% 2117 AGREED LOANS FOR MORE THAN ONE YEAR MATURITY 100.0% 2118 AGREED LOANS FOR FIVE OR MORE YEARS MATURITY 100.0% 2119 SUBORDINATED LOANS 100.0% 212 OWN ISSUANCE TITLES 01 AGREED UP TO ONE YEAR MATURITY 100.0% 03 AGREED FOR MORE THAN ONE YEAR AND LESS THAN FIVE YEARS MATURITY 100.0% 04 AGREED FOR FIVE OR MORE YEARS MATURITY 100.0% 06 OTHER OWN ISSUANCES AGREED UP TO ONE YEAR MATURITY (3) 100.0% 07 OTHER OWN ISSUANCES AGREED FOR MORE THAN ONE YEAR AND LESS THAN FIVE YEARS MATURITY (3) 100.0% 08 OTHER OWN ISSUANCES AGREED FOR FIVE OR MORE YEARS MATURITY (3) 100.0% 213 DEMAND OBLIGATIONS 100.0% 221 BALANCES BETWEEN COMPANIES 100.0% 222 ACCOUNTS PAYABLE 100.0% 223 WITHHOLDINGS AND EMPLOYER CONTRIBUTIONS 100.0% 2240 PROVISIONS 100.0% 2241 LIABILITIES ASSOCIATED WITH ASSETS 100.0% 2242 SHARE-BASED PAYMENT OPTIONS 100.0% 225 DEFERRED LIABILITIES 100.0% 5 CONTINGENT COMMITMENTS 100.0% TOTAL LIABILITIES, FUTURE COMMITMENTS AND CONTINGENCIES 100.0%
FINANCIAL ENTITIES
Approval: 28/11/2023
Validity: 1/01/2024
Annex No. 2
ENTITY: _____________________________________________________________________________
CALCULATION OF THE CAPITAL FUND REQUIREMENT AT ________ OF ___________ OF ______ (IN THOUSANDS OF US$) balance weighting factor weighting weighted balance
I. TOTAL WEIGHTED ASSETS
II. REQUIREMENT OF THE _____ ON WEIGHTED ASSETS
DETERMINATION OF THE CAPITAL FUND
PRIMARY CAPITAL
3110 SUBSCRIBED SOCIAL CAPITAL 100.0%
3111 VARIABLE SOCIAL CAPITAL (only for cooperative banks) 100.0% 3120 PENDING CAPITAL CONTRIBUTIONS TO BE FORMALIZED (only for cooperative banks) 100.0% 3130 CAPITAL RESERVES 100.0% Total Primary Capital PLUS SUPPLEMENTARY CAPITAL 3140 RESULTS TO BE APPLIED 314001 RESULTS FROM PREVIOUS YEARS 100.0% 314002 RESULTS OF THE CURRENT YEAR 50.0% 3150 SHARE PREMIUMS 100.0% 3210 NON-DISTRIBUTABLE PROFITS 321001 ACCRUED BUT UNRECEIVED INCOME 100.0%
FINANCIAL ENTITIES
Approval: 28/11/2023
Validity: 1/01/2024
Annex No. 2
ENTITY: _____________________________________________________________________________
CALCULATION OF THE CAPITAL FUND REQUIREMENT AT ________ OF ___________ OF ______ (IN THOUSANDS OF US$) balance weighting factor weighting weighted balance Balances from the start of the 4th year before maturity -40.0% Balances from the start of the 3rd year before maturity -60.0% Balances from the start of the 2nd year before maturity Balances from the start of the 1st year before maturity -80.0% -100.0% MINUS:
LOSSES -100.0%
Total Supplementary Capital (up to the sum of primary capital) TOTAL PRIMARY AND SUPPLEMENTARY CAPITAL MINUS:
4120010501 SUBSIDIARIES, SUBSIDIARIES, AGENCIES AND FOREIGN BANKS-ML 100.0% 4120010502 SUBSIDIARIES, SUBSIDIARIES, AGENCIES AND FOREIGN BANKS – ME 100.0% 4120020501 SUBSIDIARIES, SUBSIDIARIES, AGENCIES AND FOREIGN BANKS-ML 100.0% 4120020502 SUBSIDIARIES, SUBSIDIARIES, AGENCIES AND FOREIGN BANKS-ME 100.0% 4120030501 SUBSIDIARIES, SUBSIDIARIES, AGENCIES AND FOREIGN BANKS-ML 100.0% 4120030502 SUBSIDIARIES, SUBSIDIARIES, AGENCIES AND FOREIGN BANKS-ME 100.0% 4120040501 SUBSIDIARIES, SUBSIDIARIES, AGENCIES AND FOREIGN BANKS-ML 100.0% 4120040502 SUBSIDIARIES, SUBSIDIARIES, AGENCIES AND FOREIGN BANKS-ME 100.0% 114107 LOANS TO AGENCIES, AND SUBSIDIARIES ABROAD 100.0% 114207 LOANS TO AGENCIES, AND SUBSIDIARIES ABROAD 100.0% 114807 LOANS TO AGENCIES, AND SUBSIDIARIES ABROAD 100.0% 121000 BALANCES BETWEEN COMPANIES 1210000201 Balance with foreign agencies – ML 100.0% 1210000202 Balances with foreign agencies – ME 100.0% 1210000601 Balances with foreign subsidiaries – ML 100.0% 1210000602 Balances with foreign subsidiaries – ME 100.0% 1210000701 Balances with foreign banks – ML 100.0% 1210000702 Balances with foreign banks – ME 100.0% 1210000801 Balances with parent company – ML 100.0% 1210000801 Balances with parent company – ME 100.0%
FINANCIAL ENTITIES
Approval: 28/11/2023
Validity: 1/01/2024
Annex No. 2
ENTITY: _____________________________________________________________________________
CALCULATION OF THE CAPITAL FUND REQUIREMENT AT ________ OF ___________ OF ______ (IN THOUSANDS OF US$) balance weighting factor weighting weighted balance 1260 INVESTMENTS IN SHARES, RIGHTS AND PARTICIPATIONS 126001 126002 Joint investments subsidiaries 100.0% 100.0% 126005 Foreign banks 100.0%
III. TOTAL CAPITAL FUND
IV. SURPLUS OR (DEFICIENCY) (III - II)
V. EQUITY COEFFICIENT (III / I)
I. TOTAL LIABILITIES, CONTINGENT COMMITMENTS
II. REQUIREMENT OF THE _____ ON LIABILITIES, CONT. COMMITMENTS
III. SURPLUS OR (DEFICIENCY) (CAPITAL FUND LESS REQUIREMENT)
IV. EQUITY COEFFICIENT (CAPITAL FUND / TOTAL L, C CONT)
1/ AUTHORIZED BY THE SUPERINTENDENCY OF REQUESTS RECEIVED UP TO JANUARY 31, 1998 FOR BANKS AND UP TO DECEMBER 31, 2001 FOR COOPERATIVE BANKS, FEDERATIONS AND SAC 2/ WHEN THE SUPERINTENDENCY GENERALY PROVIDES 3/ UP TO 50% OF THE VALUE OF PRIMARY CAPITAL AND 20% ACCUMULABLE DISCOUNT DURING THE FIVE YEARS TO MATURITY 4/ UP TO THE AMOUNT OF NET ASSETS OF PROVISIONS 5/ LOANS UP TO US$ 250,000.00 FULLY GUARANTEED WITH REGISTERED MORTGAGE (2)
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Source: Banco Central de Reserva de El Salvador — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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