SBS: How do I know if the cooperative where my savings are located could be at risk of being intervened?

Last Thursday, the Superintendency of Banking, Insurance and AFP (SBS) intervened the cooperative QuillaCoopfrom Cusco. This occurs a few days after the same entity also ordered the intervention and subsequent dissolution of the Savings and Credit Cooperative Caja Sullana. In both cases, according to the SBS, causes were violated that ended with the actions already known. With 257 savings and credit cooperatives (COOPAC) at a national level, there are many people who trust this system, so what happened with Sullana Box and QuillaCoop raises the question of what could happen if other cooperatives are intervened.

To validate these cases, the SBS relies on the Resolution SBSNº 5076-2018which approves the Regulations on special regimes for the liquidation of savings and credit cooperatives not authorized to collect funds from the public. Below, we present the reasons and how to know if the cooperative in which you trust your money is correctly registered with the corresponding regulatory entity.

SBS: for these reasons it can intervene in a cooperative

As mentioned above, the Resolution SBSNº 5076-2018 approved the Regulations on Special Regimes and the Liquidation of Savings and Credit Cooperatives Not Authorized to Collect Resources from the Public. According to Chapter II, Article 2, these are the causes of the intervention regime:

1. Due to a decrease in the number of partners to less than the minimum that arises from the number of directors established in the bylaws of the company Coopac in the case of primary cooperatives, and a single cooperative in the case of central cooperatives;
2. Due to total loss of the share capital and the cooperative reserve
3. By conclusion of the specific purpose for which the Coopac was established
4. When there is no representative with sufficient powers to administer the Coopac, or there is a conflict regarding the legitimacy of the Coopac’s representative that makes the regular operation of the Coopac unviable.

How can I know if my savings stored in a cooperative are safe?

Trust in a cooperative is based mainly on its formation, that is, whether it is registered and regulated by the Superintendency of Banking, Insurance and AFP (SBS). Below are some other points to check to avoid problems:

Supervision by the SBS

Since 2019, the Superintendency of Banking, Insurance and AFP (SBS) SBS has the authority to supervise savings and credit cooperatives in Peru. This supervision is crucial, as it ensures that these entities operate transparently and comply with financial regulations. The SBS has intervened and closed cooperatives that do not meet the necessary standards. If you wish to see the list of registered entities, you can do so at the following LINK.

Cooperative Deposit Insurance Fund (CDIF)

Check if the cooperative is affiliated with the Cooperative Deposit Insurance FundThis fund protects members’ savings up to a certain limit (S/5,000 or S/10,000, depending on the size and assets of the cooperative). Only cooperatives registered with the SBS and that have contributed to the fund for at least 24 months are covered.