On Sep. 20, PER SBS issued rules on operational concentration limits.
PER SBS issued Bulletin 34 re Decree 1646 of Sep. 13, 2024 (D.Leg) regarding the operational limits of concentration applicable to companies in the financial system.
Document dated Sep. 20, 2024, received from PER SBS Sep. 26, summarized Sep. 30.
Highlights
D.Leg. 1646 modified the operational limits of portfolio concentration, referencing treatment established in international standards and the national financial system.
Updated limit re financing to directors and workers to 10% of effective level 1 assets.
Also updated financing limit to related persons from 30% of total effective assets to 25% of level 1 effective assets, and sets provisions of the large exposure standard.
Financing granted by a financial system company to counterparty/counterparties may not exceed 15% of effective level 1 equity of company when there are no guarantees.
Limit can be extended to 25% of effective Tier 1 assets if the excess is covered with guarantees regulated by the SBS or corresponds to exposures in the financial system.
Additionally, established a stricter limit for operations between entities of the financial system that are subject to maintaining the risk cushion due to market concentration.
