Regulatory Alerts2020-12-10 | NASF-09Added · Updated
Technical Standards for the Evaluation and Classification of Credits Granted by Development Banking
The Committee of Standards of the Central Reserve Bank of El Salvador issued these standards to regulate the evaluation, classification, and reserve requirements for credit risk assets held by development banking entities. The rules mandate that entities maintain 100% of credit risk assets properly classified, evaluate their fifty largest debtors monthly, and establish minimum health reserves based on specific risk categories and guarantee values. The document defines reserve percentages for different debtor sizes, sets documentation thresholds for credit files, and establishes detailed procedures for handling restructured, refinanced, and agricultural credits.