SBS integrates measures of the Law to strengthen the regulatory framework of municipal savings banks

The Superintendency of Banking, Insurance and AFP (SBS) approved this Tuesday, July 18, Resolution No. 02350-2023 in order to incorporate new provisions into Law No. 31711 – Law to strengthen municipal savings and credit banks (CMAC) to promote competition for the benefit of consumers that was recently approved by the Congress of the Republic.

In detail, as of March 17, those municipal savings banks that have been in operation for more than three years and have assets of more than 75,000 UIT, They can receive deposits, grant overdrafts or advances in a checking account, issue cashier’s checks, as well as issue and manage credit and debit cards, directly and without authorization from the SBS.

In addition, it provides that the percentage of capitalization of the profits of each year of the Municipal Popular Credit Fund of Lima could be raised from 50% to 75% in the event of a breach of the following standards in corporate governance and risk management:

• The CMCPL must have at least six directors.

• The General Management must not be vacant or have a mandate of less than nine months.

• The CMCPL does not present requirements for provisions, liquidity or capital, of a regulatory or prudential nature, formulated by the Superintendency, pending attention.

• The CMCPL must comply with the provisions of the Regulation for the Requirement of Effective Equity for Additional Risks, approved by SBS Resolution No. 3953-2022, and the Regulation for the Requirement of Conservation Buffers, by Economic Cycle and by Market Concentration Risk, approved by SBS Resolution No. 3954-2022.