On Oct. 23, PAN CB issued circular notifying of approval on new regs.
PAN CB issued Circular SBP-DR-0060-2023 to communicate capital conservation buffer requirements established by PAN CB board, under provisions of Agreement 005-2023.
Buffer Defined
For the purposes of this Agreement, it is the capital of the entities whose objective is to guarantee that the banks accumulate reserves that can be used in case of losses.
Objective that banks do not fail to comply with the established minimum requirements.
Without consider the conservation buffer, in episodes of deterioration of solvency.
Buffer Requirement
Banking companies must establish a capital conservation buffer of 2.5% of assets.
Assets weighted by risk (credit, market, operation) formed by ordinary primary capital
Also by to all minimum regulatory capital requirements that are established.
Agreement contains a table of capital adequacy ratios considering 2.5% buffer.
Effectiveness
Provisions of Agreement start to enter into force as of Jul. 1, 2024.
May 27, 2024 PAN CB Table SB36 Update
On May 27, 2024, PAN CB published Circular 2024-0017 to update the structure and include codes to the Capital Adequacy table (SB36), according to Agreement 5-2023.
Banking entities that have opted for the adaptation period established in article 12 of Agreement 5-2023 must ensure they comply with percentages in the gradual table.
Information requirements will continue to be sent quarterly within 30 calendar days.
Submission of information for quarter ending on Sep. 30, 2024, will be until Oct. 2024.
Consultations regarding the update of table SB36 may be sent until Sep. 30, 2024.
May 28, 2024 PAN CB Table SB84 Update
On May 28, 2024, PAN CB published Circular 2024/0018 to update some categories of the Auxiliary Table of Dynamic Provision (SB84), according to Agreement 3-2016.
Information requirements related to Table SB84 will continue to be submitted on a quarterly basis within 30 calendar days after expiration of the corresponding quarter.
Submission of information for quarter ending on Sep. 30, 2024, will be until Oct. 2024.
Consultations regarding the update of table SB84 may be sent until Sep. 30, 2024.
