Quillacoop Cooperative is intervened due to total loss of share capital, warns SBS

Last Wednesday, staff from the National Superintendency of Banking, Insurance and AFP went to the offices of the Quillacoop Cooperative in order to begin the dissolution process. In a statement, the SBS said that the cooperative, with its main headquarters in Quillabambapresented the total loss of its share capital. The intervention was made within the framework of the Law 30822which enables the intervention of the regulatory authority in the event of incurring in this cause. Therefore, given the intervention, the cooperative is prohibited from continuing its functions.

Likewise, the Superintendency of Banking, Insurance and AFP (SBS) has the power to start the judicial processes or administrative proceedings to collect the debts of an intervened savings and credit cooperative. In addition, it will not be able to execute judicial resolutions against it, establish liens on its assets as collateral, make payments or assume obligations with the funds of the cooperative. COOPAC in the hands of third parties, and adopt precautionary measures on their assets, with the aim of protecting the interests of the partners and the financial system. It should be noted that, a few days ago, the SBS also intervened Sullana Boxan entity that was absorbed by Caja Piura after winning a tender.

SBS: What does it mean when a cooperative has incurred a total loss of its share capital?

When a cooperative incurs in the total loss of its share capitalmeans that it has lost all the capital contributed by its members. This can occur due to bad investments, payment defaults, liquidity problems or inefficient management. The total loss of share capital indicates that the cooperative does not have the financial resources necessary to continue operating, which can lead to its liquidation or dissolution. In this case, the Superintendency of Banking, Insurance and AFP (SBS) can intervene to protect members and creditors.

In which cases can the SBS intervene in a cooperative?

The Superintendency of Banking, Insurance and AFP (SBS) may intervene in a savings and credit cooperative (COOPAC) in the following cases:

1. When the COOPAC incurs a cause for dissolution: The SBS may declare the dissolution of a COOPAC that already had a request for dissolution and liquidation pending before the Judiciary without a ruling, due to being subject to the causes of total loss of the share capital and the cooperative reserve and the conclusion of the specific purpose for which it was established, provided for in the General Law of Cooperatives.
2. If COOPAC presents significant losses
3. When the COOPAC is not registered in the national registry: The SBS identifies as informal entities those COOPACs that are not registered in the National Registry of Coopacs under its responsibility.
4. If COOPAC carries out unauthorized operations: The SBS supervises that the COOPACs registered in the National Registry carry out only the operations permitted according to their level in the modular supervision scheme.

SBS: What are its functions?

Created on May 9, 1931, the Superintendency of Banking, Insurance and AFP (SBS) is a public entity in charge of regulating and supervising the financial, insurance and private pension systems. Its main functions are:

1. Supervise and regulate the activities of banks, insurance companies, pension fund administrators and other financial institutions.
2. Protect the interests of depositors, policyholders and members.
3. Promote the stability, solvency and transparency of the financial system.