The Superintendency of Banking, Insurance and AFP (SBS) informed that this Thursday, August 10, it has subjected the intervention regime to the Rural Savings and Credit Fund Raíz for financial insolvency.
Jorge Mogrovejodeputy superintendent of banking and microfinance at The SBS detected that Caja Raíz’s losses totaled S/44.3 million, therefore effective equity was reduced by 70.3% to S/16.46 million between June 2002 and June 2023 and the global capital ratio fell to 1 .94%
“The significant deterioration in the solvency of CRAC Root is the consequence of deficient management, mainly of the non-retail portfolio, which led it to make large-scale provisions and, therefore, to record losses in recent years,” said the official from the SBS.
This way, the cessation of operations of said rural bank occurred, transferring its administration to the SBS, who has already initiated sanctioning administrative procedures against the responsible officials and will proceed to present the corresponding complaints.
What will happen to the savers of Caja Raíz?
He SBS superintendent recalled that the resources of the Deposit Insurance Fund, which currently provides coverage of up to S/123,920. so, el 96.3% of the savers of the Caja Raíz will be able to recover 100% of their savings.
Source: Larepublica
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