MEF opens the doors to more money transport companies

The Ministry of Economy and Finance (MEF) modified this Saturday through DL No. 1531, the General Law of the Financial System in order to promote greater competition in the sector, within the framework of the powers delegated by Congress.

Among the most important points, it stands out the reduction of the minimum capital required for money transport companies – from S/ 21 million to S/ 14 million –. It is worth emphasizing that currently only Hermes and Prosegur occupy this area, for which, according to the head of the MEF, Oscar Grahamthe entry of new companies that offer this service will be facilitated, without relaxing the security standards required by law.

“We hope that the measure will generate greater competition in the transfer of money,” he added.

More modifications

I also know They simplified the licensing and supervision processes for companies that do not take deposits from the public. These new conditions make the procedures for opening, transferring and closing branches, agencies or special offices more flexible, which will encourage the entry of new entities to compete with banks and other entities in the delivery of consumer loans.

In addition, the MEF details that in order to take care of the “health” of the financial system, measures are provided that simplify the exit of companies from the market that do not capture deposits from the public through the incorporation of two new assumptions or causes: when the effective equity is less of half of the required amount or, due to loss or reduction of effective equity. Surveillance, intervention, and dissolution and liquidation regimes will not apply to these.

On the other hand, the existence of 100% digital financial entities will be allowedTherefore, it will not be necessary to have a headquarters or main premises for its authorization. This guarantee must be accessible to the public.

“Currently there is a growing development of digital finance, this allows cost reduction and greater alternatives for the benefit of consumers, mainly those with lower incomes,” said Graham.

Finally, in relation to the best international practices in banking regulation and supervision (Basel III), Three new types of capital linked to market, economic cycle and conservation risks are requested from financial entities in the face of possible losses due to systemic events.

According to the MEF, this will improve the protection of the financial system that can affect lower-income depositors and mypes.