Promoting Best Practices for Banking Supervisionasbaweb.org/E-News/enews-58/JBS_58.pdf · Promoting...

Journal of the 58

July – September, 2019

Banking Supervisor Promoting Best Practices for Banking Supervision

of the

Table of Contents Banking Regulation and Supervision

• The Road to Innovation and its Regulation

• Margin Requirements for Non-centrally Cleared Derivatives

• Review of the Technical Implementation of the Total Loss-Absorbing Capacity (TLAC)

Standard

• Terrorist Financing Risk Assessment Guidance

• Guidance for a Risk Based Approach: Virtual Assets and Virtual Asset Service Providers

Market Outlooks and Reviews

• World Economic Outlook Update, July 2019: Still Sluggish

• Global Economic Prospects: Heightened Tensions, Subdued Investment.

Latin America and the Caribbean Region

• Economic Survey of Latin America and the Caribbean 2019. The New Global Financial

Context: Effects and Transmission Mechanisms in the Region

• Economic Study of Central America and the Dominican Republic in 2018 and

Perspectives for 2019

• Corporate Governance and Data Protection in Latin America and the Caribbean

Research and Analysis

International Standards Implementation

i. Provision Practices and IFRS 9 Implementation Challenges in the Americas (ASBA Publication)

ii. Basel III Reforms: Impact Study and Key Recommendations

iii. Overview of Pillar 2 Supervisory Review Practices and Approaches

iv. Proportionality under Pillar 2 of the Basel Framework

Macroprudential i. Is the Financial System Sufficiently Resilient: A Research Programme and Policy Agenda?

ii. Liquidity Ratios as Monetary Policy Tools: Some Historical Lessons for Macroprudential Policy

iii. Liquidity Risk Drivers and Banks Business Models

Technology in the Financial Sector: Cyber Risk and Fintech i. Navigating Cyber Risk Quantification: The Art and Science of Cyber Quantification

Through a Scenario-Based Approach

ii. Global Cyber Risk Perception Survey

iii. Global Rules for a Global Market Place? – The Regulation and Supervision of Fintech Providers

iv. Fintech: The Experience So Far

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Table of Contents


Integrity. Anti-money Laundering and Counter Terrorism Financing

i. Suptech Applications for Anti-Money Laundering

ii. Anti-Money Laundering (AML) & Countering Financing of Terrorism (CFT) Risk Management in Emerging Market Banks

iii. Beyond KYC Utilities: Collaborative Customer Due Diligence

Emerging and Current Trends

i. Machine Learning-based Early Warning System for preventing bank distress in Brazil

ii. Sustainable Finance in Emerging Markets and the Role of Securities Regulators

iii. Pull, Push, Pipes: Sustainable Capital Flows for a New World Order

Contributions and News

ASBA Events

asbasupervision.com Tel. +52 (55) 5662 0085,

[email protected] @ASBAnews

• Banco Central do Brasil, Brazil

• Superintendencia de Bancos, Ecuador

• Superintendencia del Sistema Financiero,

El Salvador

• Superintendencia de Bancos, Guatemala

• Comisión Nacional de Bancos y Seguros,

Honduras

• Comisión Nacional Bancaria y de Valores,

Mexico

• Comisión Nacional para la Protección y

Defensa de los Usuarios de Servicios Financieros, Mexico

• Superintendencia de Bancos y Otras

Instituciones Financieras, Nicaragua

• Superintendencia de Bancos de Panamá,

Panama

• Superintendencia de Banca, Seguros y AFP,

Peru

• Superintendencia de Bancos de la

República Dominicana, Dominican Republic


mailto:[email protected]

https://twitter.com/ASBAnews/




ASBA Events

4

Banking Regulation and Supervision

Margin Requirements for Non-centrally Cleared Derivatives

https://bit.ly/2mf5FXF

This document presents the final policy framework that establishes minimum standards for margin requirements for non-centrally cleared derivatives as agreed by the Basel Committee on Banking Supervision and the International Organization of Securities Commissions (IOSCO). The document lays out the key objectives,

elements and principles of the final margining framework.

Bank for International

Settlements (BIS) and International Organization of

Securities Commissions(IOSCO)

Basel Committee on Banking

Supervision

July, 2019

Review of the Technical Implementation of the Total

Loss-Absorbing Capacity (TLAC) Standard

https://bit.ly/2l4KFCV

The Total Loss-Absorbing Capacity (TLAC) Standard was designed so that failing Global Systemically Important Banks (G-SIBs) will have sufficient loss-absorbing and recapitalization capacity for authorities to implement an orderly resolution. Being able to implement orderly resolutions, minimizes impacts on financial stability, maintains the continuity of critical functions, and avoids exposing public funds to loss. This report sets out a technical review of the implementation of the TLAC.

Financial Stability Board

(FSB) July, 2019

asbasupervision.com

The Road to Innovation and its Regulation

https://bit.ly/2lsccyc

On this note, the Superintendent of Banks of Guatemala, Mr. Erick Armando Vargas Sierra, provides some insights regarding the entry of technological innovations in the financial sector, the surge of new risks and the current approaches for their regulation. Furthermore, the note introduces the recent creation of the Innovation and Development Unit (UNIDE), which aims to investigate, study and analyze innovative business models in the financial sector as well as their inherent risks for

the development of regulatory instruments.

Superintendencia de Bancos de Guatemala

Mr. Erick Armando Vargas, Superintendent of Banks

September, 2019






ASBA Events

5


Guidance for a Risk Based Approach: Virtual Assets and Virtual Asset

Service Providers

https://bit.ly/2IJVrYk

Based on revisions of the Financial Action Task Force (FATF) Recommendations in October 2018 and June 2019 in response to the increasing use of virtual assets for money laundering and terrorist financing, this Guidance was developed to help countries and virtual asset service providers understand their anti-money laundering and counter-terrorist financing obligations, and effectively implement the FATF’s requirements that apply to this sector.

asbasupervision.com

Financial Action Task Force (FATF)

June, 2019

Terrorist Financing Risk Assessment Guidance

https://bit.ly/2laeOAF

Building on the Financial Action Task Force’s (FATF) 2013 Guidance on National Money Laundering and Terrorist Financing Risk Assessments, this report provides good approaches, relevant information sources and practical examples for practitioners to consider when assessing Terrorist Financing Risk at the jurisdiction level.

Financial Action Task Force (FATF)

July, 2019


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ASBA Events

World Economic Outlook Update, July 2019: Still Sluggish Global

Growth

https://bit.ly/2Y9A7zZ

This is an update, with information from the first semester of 2019, of the World Economic Outlook published by the International Monetary Fund (IMF). It mentions that global growth remains subdued, with downward expectations (0.1 percentage points lower than April projections). This is due to the rise of global trade tensions, uncertainty related to Brexit and the volatility in energy prices due to the increase in geopolitical tensions.

asbasupervision.com

International Monetary Fund

(IMF)

July, 2019

Global Economic Prospects: Heightened Tensions, Subdued

Investment. Latin America and the Caribbean Region

https://bit.ly/2m9O0AW

This document mentions that the Latin American and Caribbean region (LAC) will grow a moderate 1.7% in 2019, due to the global economic context and the difficult conditions prevailing in several economies of the region. However, despite a complicated 2019 and according to projections, regional growth will increase to 2.5% by 2020, driven by a rebound in fixed investments after a long period of decline. On the other hand, the risks for the region's outlook could be a decrease in exports and investments due to commercial tensions, a slowdown in the economy of the United States and China, among other developed economies. Finally, government debt levels have risen steadily in much of the region, posing a risk if borrowing costs rise suddenly.

World Bank (WB) June, 2019

Economic Survey of Latin America and the Caribbean 2019.

The New Global Financial Context: Effects and Transmission Mechanisms in the Region

https://bit.ly/2laBUqO

In this new edition, the Economic Survey of Latin America and the Caribbean (LAC) has three fundamental parts. The first, summarizes the performance of the regional economy of 2018 and analyzes the performance during the first semester of 2019; the economic growth characteristics; prices and the labor market. The second part analyses the changes in the international financial system following the global financial crisis of 2007–2008. The third part contains the methodological notes on the economic performance of the countries of the LAC region in 2018 and the first half of 2019.

Economic Commission for Latin America and the

Caribbean (ECLAC) July, 2019


https://www.imf.org/en/Publications/WEO/Issues/2019/07/18/WEOupdateJuly2019



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ASBA Events

Economic Study of Central America and the Dominican Republic in

2018 and Perspectives for 2019

https://bit.ly/2TPnDgp

This document analyzes the economies of Central America (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama) and the Dominican Republic in 2018 and offers perspectives for 2019. The document is a joint analysis prepared by the Unit of Economic Development of the sub regional headquarters of the Economic Commission for Latin America and the Caribbean (ECLAC) with relevant information

from the first half of 2019.

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Caribbean (ECLAC) July, 2019

Corporate Governance and Data Protection in Latin America and

the Caribbean

https://bit.ly/2XlEhZS

This paper describes and discusses the relationship between cybersecurity and corporate governance with a special interest on data protection in Latin America and the Caribbean. The motivation for the work resides in the growing role that data protection and privacy laws and regulations in developed countries reserve for corporate governance. These laws increasingly assign responsibilities to boards of directors and management with the expectation to incentivize firms to take data protection seriously in the face of cybersecurity and privacy risks. The paper presents these new rules and explores their current and potential use in the region, focusing on the rules and practices on data protection in Argentina, Brazil, Chile,

Colombia, Mexico, Peru, and Uruguay.


Caribbean (ECLAC)

Héctor J. Lehuedé

Junio 2019


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ASBA Events

International Standards Implementation

asbasupervision.com

Provisioning Practices and IFRS 9 Implementation Challenges in the

Americas

https://bit.ly/2kGWYFp

In July 2019, the Technical Discussion Meeting on Provisioning Practices and IFRS 9 Implementation Challenges in the Americas was held among experts from ASBA member institutions. The issues discussed were divided into the following four sessions:

1. General issues for the Americas’ Financial Authorities

2. Asset valuation, data, and risk modelling concerns

3. Asset classification concerns

4. Prudential concerns

This document presents the most relevant topics drawn from the discussion held by experts from ASBA member institutions, which are expected to be helpful for other Supervision and Regulation Authorities in the region.

Association of Supervisors of

Banks of the Americas (ASBA)

Marcos Fabian C. and Antonio Pineda

September, 2019

Basel III Reforms: Impact Study and Key Recommendations

https://bit.ly/2T8dCu9

This report presents the findings of the EBA’s (European Banking Authority) impact assessment analysis on the various components of the reform of the standard Basel III. It also incorporates the full set of prudential recommendations and clarifications which are deemed necessary to ensure a smooth and consistent implementation of the revisions of the final Basel III framework in the European Union.

European Banking Authority (EBA)

August, 2019

Overview of Pillar 2 Supervisory Review Practices and Approaches

https://bit.ly/2kYRfuO

The document describes key concepts of Pillar 2 and supervisory review practices used across Basel Committee member jurisdictions. Furthermore, it covers key areas of the Pillar 2 supervisory review process, including the risk assessment process, risk appetites, board and senior management roles, supervisory practices adopted to enhance transparency, and bank disclosure practices.

Bank for International Settlements (BIS)

Basel Committee on Banking

Supervision (BCBS)

June, 2019




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ASBA Events

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Proportionality under Pillar 2 of the Basel Framework

https://bit.ly/2msyakT

This paper outlines the Pillar 2 implementation approaches in 16 jurisdictions, focusing on whether and how they apply proportionality. We also take stock of the post-crisis evolution of bank rating systems, given their fundamental role in shaping supervisory outcomes. While all surveyed jurisdictions have a process that incorporates the key elements of Pillar 2, their implementation approaches vary. Differences include variations in the methods used to determine Pillar 2 capital add-ons and what these add-ons are intended to cover. Diverging Pillar 2 approaches can also be attributed to the role of supervisory judgment in applying proportionality and in assessing an institution's risk profile. The authors find that some authorities provide explicit guidance to support the judgments of supervisors, while others allow greater discretion to supervisory teams to fulfill their Pillar 2 responsibilities.

Financial Stability Institute (FSI)

Vincent Duckwitz, Stefan Hohl, Katrin Weissenberg and

Raihan Zami

July, 2019

Macroprudential

Is The Financial System Sufficiently Resilient: A Research

Programme and Policy Agenda

https://bit.ly/2lGjb6U

This essay addresses the issue of the “resilience of the financial system” from two perspectives. One is asking whether the system is as resilient as policymakers say it is (which the author answers in the negative). The second is to explore what it would mean to operationalize, within a Money-Credit Constitution, recent theoretical discussions of “informationally insensitive” safe assets.

Bank for International Settlements (BIS)

Paul Tucker

July, 2019

Liquidity Ratios as Monetary Policy Tools: Some Historical Lessons

for Macroprudential Policy

https://bit.ly/2mEFwlp

This paper explores what history can tell us about the interactions between macroprudential and monetary policies. Based on numerous historical documents, it shows that liquidity ratios similar to the Liquidity Coverage Ratio (LCR) were commonly used as monetary policy tools by central banks between the 1930s and 1980s. The authors build a model that rationalizes the mechanisms described by contemporary central bankers, in which an increase in the LCR has contractionary effects, because it reduces the quantity of assets banks can pledge as collateral. This effect, akin to quantity rationing, is more pronounced when excess reserves are scarce.

International Monetary Fund (IMF)

August, 2019






ASBA Events

asbasupervision.com

Liquidity Risk Drivers and Banks Business Models

https://bit.ly/2lJcy3A

This paper investigates how the characteristics of a bank, such as size, capital, and business model, are related to liquidity risk, while using a sample of European banks in the period after the financial crisis, from 2011 to 2017. While employing a generalized method of moment two-step estimator, the authors find that the banking size increases the liquidity risk, whereas capital is not an effective deterrent. Moreover, the findings reveal that, for savings banks, income diversification raises the liquidity risk while investment banks reliance on non-deposit funding decreases the exposure to liquidity risk.

Multidisciplinary Digital Publishing Institute (MDPI)

Simona Galleta and

Sebastiano Mazzú

August, 2019

Technology in the Financial Sector: Cyber-risk and Fintech

Navigating Cyber Risk Quantification: The Art and Science of Cyber

Quantification Through a Scenario-Based Approach

https://owy.mn/2mBJQC6

This paper provides a structured approach to estimating Cyber Risk Exposures. Through the use of real examples, it describes how to avoid common pitfalls while detailing and quantifying scenarios. Quantification of cyber risk can help organizations deep dive into understanding their exposure and provide them with a baseline to prioritize strategic investments.

Oliver Wyman

2019

Global Cyber Risk Perception Survey

https://bit.ly/2kuXBBG

The 2019 Global Cyber Risk Perception Survey reveals encouraging signs of improvement in the way that organizations view and manage cyber risk. Cyber risk is now clearly and firmly at the top of corporate risk agendas, and there is a positive shift towards the adoption of more rigorous, comprehensive cyber risk management in many areas. However, many organizations still struggle with how best to articulate, approach, and act upon cyber risk within their overall enterprise risk framework—even as the tide of technological change brings new and unanticipated cyber risk concerns.

MARSH and Microsoft September, 2019

10






ASBA Events

asbasupervision.com

Global Rules for a Global Market Place? – The Regulation and

Supervision of Fintech Providers

https://bit.ly/342XhMx

Financial Technology (Fintech) revolutionizes the way in which financial services are rendered. Although the phenomenon is not new, it has taken on a novel dimension. Markets which were once national are morphing into global ones. The interest in regulating them not only exists, but to some extent is even higher compared to traditional services. This article illustrates the many different needs for regulating Fintech providers, from the protection of investors and consumers, to the fight against money laundering and tax evasion. The document also shows that idiosyncratic national rules would result in legal fragmentation and deprive the world of the benefits that digital services can provide.

European Banking Institute

Matthias Lehmann

July, 2019

Fintech: The Experience So Far

https://bit.ly/2KUSXZh

On June 17, 2019, the Executive Board of the International Monetary Fund (IMF) discussed a paper prepared jointly with the World Bank (WB) staff reviewing country and regional Fintech experiences as a follow up to the Bali Fintech Agenda. The paper finds that while there are important regional and national differences, countries are broadly embracing the opportunities of Fintech to boost economic growth and inclusion, while balancing risks to stability and integrity.

International Monetary Fund (IMF) and World Bank (WB)

June, 2019

Integrity. Anti-money Laundering and Counter Terrorism Financing

Suptech Applications for Anti-money Laundering

https://bit.ly/2l4pmkQ

Suptech is used by financial authorities of advanced data collection and as analytics tools enabled by new technologies. The development of such tools has been facilitated by advances in artificial intelligence and its practical application in machine learning, natural language processing and other advanced analytics capabilities. These tools have provided opportunities to enhance financial authorities’ capacity.

This paper dives deep into Suptech and it aims to explore the various data analytics tools used by authorities tasked with detecting potential anti-money laundering (AML) and combating the financing of terrorism (CFT); a field where data analytics tools seems more advanced.

Financial Stability Institute (FSI)

Rodrigo Coelho, Marco De

Simoni and Jermy Prenio

August, 2019

11






ASBA Events

asbasupervision.com

Anti-Money Laundering (AML) & Countering Financing of Terrorism

(CFT) Risk Management in Emerging Market Banks

https://bit.ly/2lJNsSb

For banks in emerging markets the regulatory landscape is more complicated than ever. Rules designed to fight money laundering and root out terror finance have made the financial system safer and more resilient but have also increased the cost and complexity of doing business in developing countries. That’s why the IFC has published a Good Practice Note for banks on AML/CFT risk management. The publication is designed to advance emerging market banks’ knowledge on the issue and strengthen their AML/CFT capabilities.

World Bank Group

International Finance

Corporation (IFC)

July, 2019

Beyond KYC Utilities: Collaborative Customer Due Diligence

https://bit.ly/2l95woL

The private and public sectors are increasingly leveraging new technologies to deliver collaborative approaches for financial service providers (FSPs) to meet customer due diligence (CDD) requirements. By pooling resources, these collaborative approaches have the potential to lower CDD costs and increase the effectiveness of anti-money laundering and combating the financing of terrorism measures, making it more feasible for FSPs to serve low-income customers with limited financial histories and other excluded groups. CGAP has developed a typology to help policy makers, regulators, and FSPs make sense of the expanding range of collaborative approaches to CDD and evaluate their likely impact on financial inclusion.

Consultative Group to Assist The Poor (CGAP)

Timothy Lyman

August, 2019

Emerging and Current Trends

Machine Learning-based Early Warning System for preventing bank

distress in Brazil

https://bit.ly/2mJqMla

The study presents some early warning system models for bank crises and bank distress which are empirically tested for Brazilian banks. In addition to the traditional logistic regression technique (logit), two machine learning techniques are analyzed: random forest (RF) and support vector machine (SVM). The findings suggest that RF and SVM underperform the logit model, considering accuracy, area under the ROC curve, sensitivity and specificity. Moreover, RF models presented greater predictive capacity for 32 and 34 months, proving adequate to the needs of the regulators.

Banco Central Do Brasil

Jorge H. de Frias Barbosa,

Herbert Kimura, Paulo Ribeiro Cortez and Flavio de Moraes

Barbosa

2019

12






ASBA Events

asbasupervision.com

Sustainable Finance in Emerging Markets and the Role of Securities

Regulators

https://bit.ly/2n7Ia3g

During the past several years market participants, regulators and policy makers have increasingly focused their attention on issues concerning sustainable finance in its many forms. This report explores the issues and challenges that affect the development of sustainable finance in capital markets, focusing on sustainable assets in emerging markets and on measures to facilitate market development in this area.

International Organizations of Securities Commissions

(IOSCO)

July, 2019

Pull, Push, Pipes: Sustainable Capital Flows for a New World Order

https://bit.ly/2ZcYm4O

In this publication, Governor Mark Carney of the Bank of England argues that capital flow volatility is rising because of the fundamental asymmetry in the international monetary financial system and the rapid rise of market-based finance. The paper explains why the conventional wisdom for emerging markets to ‘keep their house in order’ is no longer sufficient to achieve sustainable capital flows and why all countries must play a role.

Consultative Group to Assist The Poor (CGAP)

Mark Carney

July, 2019

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ASBA Events

We requested information on prudential and non-prudential financial regulation issued by member institutions of ASBA in the second quarter of the year. We include a brief summary of these regulations and the link to the documentation, if it is of public nature.

This compilation is an effort to expand communication and understanding among the countries of the Americas on approaches used to address various issues that are of joint interest in financial regulation.

Regulation information, second quarter of 2019

asbasupervision.com

Banco Central do Brasil, Brazil

1. Resolution n° 4.733 (Issued on 06/27/19)

Establishes the conditions for issuing Corporate Bonds by financial institutions.

More information: https://bit.ly/2xtoF7u


Establishes conditions and procedures for carrying out discount transactions of accounts receivable

from payment systems.

More information: https://bit.ly/2LyRnvD


Establishes the general criteria for the preparation and disclosure of financial statements by

financial institutions and other institutions authorized to operate.

More information: https://bit.ly/2IRCXVe

4. Circular n° 3.952 (Issued on 06/27/19)

Registration of transactions within the framework of the payment system.

More information: https://bit.ly/2NkmMob


Modifies Circular No. 3,64, establishing new treatments for exhibitions with real estate collateral

in the prudential framework for credit risk.

More information: https://bit.ly/2WZ8UPO


Modifies circulars that establish procedures to calculate the portion of risk-weighted assets (RWA)

of market risk exposures.

More information: https://bit.ly/2RxVuJm


Modifies Circular No. 3,681 that establishes risk management, minimum capital requirements, the

governance of payment institutions and the preservation of the value and liquidity of balances in

payment accounts.

More information: https://bit.ly/2WdA5e5


https://bit.ly/2xtoF7u

https://bit.ly/2LyRnvD

https://bit.ly/2IRCXVe

https://bit.ly/2NkmMob

https://bit.ly/2WZ8UPO

https://bit.ly/2RxVuJm

https://bit.ly/2WdA5e5

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ASBA Events

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Banco Central do Brasil, Brazil


Establishes procedures for the application of sanctions imposed by the United Nations Security

Council, including the unavailability of assets of persons and entities, and of persons investigated

or accused of terrorism, their financing or related acts.

More information: https://bit.ly/2OSbxm6


Establishes procedures for the Capital Composition Map.

More information: https://bit.ly/2IFoYDI


Modifies Circular No. 3,876, and establishes methodologies and procedures to assess the adequacy

of the value of the Reference Equity maintained to cover the risk of fluctuation of the interest rate

in instruments classified in the bank portfolio.

More information: https://bit.ly/2VKgxKV


Establishes procedures to send information related to microcredit operations and defines criteria to

measure compliance with regulations.

More information: https://bit.ly/32hs7Q5

Superintendencia de Bancos, Ecuador

1. Resolution 524-2019-F (Issued on 06/14/19)

Establishes the criteria, limits and responsibilities in the administration of the resources of the

Liquidity Fund of the Private and Popular and Solidary Financial Sectors.

More information: https://bit.ly/2VJgVcv

2. Resolution SB-2019-497 (Issued on 04/29/19)

Issues updated regulations related to operational risk management.

More information: https://bit.ly/2lyc2oY


Issues updated regulations related to risk rating agencies.

More information: https://bit.ly/2IPzXc4


https://bit.ly/2OSbxm6

https://bit.ly/2IFoYDI

https://bit.ly/2VKgxKV

https://bit.ly/32hs7Q5

https://bit.ly/2VJgVcv

https://bit.ly/2lyc2oY

https://bit.ly/2IPzXc4

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ASBA Events

asbasupervision.com


Superintendencia de Bancos, Ecuador


Reforms standard related to provision of credit references.

More information: https://bit.ly/32js7iL


Issues updated regulations related to sales in public auctions by the Superintendencia de Bancos.

More information: https://bit.ly/2Mj98iC


Issues updated regulations related to the authorization of the business name and commercial name

of the entities of the private financial sector.

More information: https://bit.ly/2VNOuui


Issues updated regulations related to the qualification and supervision of auxiliary services

companies.

More information: https://bit.ly/35B6gFw


Issues updated regulation for the provision of credit reference services.

More information: https://bit.ly/2VHFiY6

Superintendencia del Sistema Financiero, El Salvador

1. Resolution NSP-24 (Issued on 05/28/19)

Issues technical standards for the authorization, registration and operation of Voluntary Pension

Savings Funds.

More information: https://bit.ly/2oLQaIp

2. Resolution NSP-25 (Issued on 05/28/19)

Issues technical standards for investments of Voluntary Pension Savings Funds.

More information: https://bit.ly/33vF4WP

3. Resolution NSP-26 (Issued on 05/ 28/19)

Issues technical standards for remission and disclosure of information of Voluntary Pension Savings

Funds.

More information: https://bit.ly/2BhS6Li


https://bit.ly/32js7iL

https://bit.ly/2Mj98iC

https://bit.ly/2VNOuui

https://bit.ly/35B6gFw

https://bit.ly/2VHFiY6

https://bit.ly/2oLQaIp

https://bit.ly/33vF4WP

https://bit.ly/2BhS6Li

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ASBA Events

asbasupervision.com


Superintendencia de Bancos, Guatemala

1. Resolution JM-36-2019 (Issued on 04/10/19)

Issues provisions related to the creation and functioning of the Financial Inclusion Commission.

2. Resolution JM-44-2019 (Issued on 04/24/19)

Authorizes banks to obtain credits from non-bank financial institutions, cooperation entities and

development entities established abroad.

More information: https://bit.ly/2Bh1bUT

3. Circular No. 4828-2019 (Issued on 05/24/19)

Issues best practices for carrying out operations and financial services in the supervised financial

system.

More information: https://bit.ly/2BhdgJD

4. Circular No. 3786-2019 (Issued on 06/05/19)

Pilot test implementation program for the preparation of financial statements and the

requirement of presentation of reports by independent auditors.

Comisión Nacional de Bancos y Seguros, Honduras

1. Resolution SPV No.403/21-05-19 (Issued on 05/21/19)

Approval of the new accounting framework based on the International Financial Reporting

Standards (IFRS) for pension fund administrators, establishing the year 2020 for transition and the

year 2021 for implementation.

More information: https://bit.ly/2qizuc7

2. Resolution SSE No.470/13-06-2019 (Issued on 06/13/19(

Incorporates into the Accounting Manual for Insurance Institutions a section on models of financial

statements.

More information: https://bit.ly/32iFIH3

3. Resolution GES No.540/24-06-2019 (Issued on 06/24/19)

Approves reforms to Article 19 and Annex 1 of the "Standards for Liquidity Risk Management".

More information: https://bit.ly/2OWb7LH

4. Resolution SPV No. 2/2019 (Issued on 05/ 20/19)

Issues guidelines for Pension Fund Administrators to calculate the Minimum Capital and Loss

Reserves.


https://bit.ly/2Bh1bUT

https://bit.ly/2BhdgJD

https://bit.ly/2qizuc7

https://bit.ly/32iFIH3

https://bit.ly/2OWb7LH

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ASBA Events

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Comisión Nacional de Bancos y Seguros, Honduras

5. Resolution GPU No.437/28-05-2019 (Issued on 05/28/19)

Approves registration of data of interest rates, commissions, associated costs, benefits and

requirements related to the following products and services: 1) Savings Accounts, 2) Checking

Accounts, 3) Fixed Term Certificates, 4) Microcredits, 5) Personal Loans, 6) Vehicle Loans and 7)

Credit Cards.

More information: https://bit.ly/2MPgkSS

6. Resolution SBO No.4/2019 (Issued on 04/29/19)

Issues regulations regarding trusts.

7. Resolution SBO No.8/2019 (Issued on 05/20/19)

Issues regulations regarding the detail and balances that the public sector companies, including

public pension funds and excluding municipal mayors, maintain as deposits in their institutions.

8. Resolution SSE No.4/2019 (Issued on 05/07/19)

Issues regulations about reports related to the integration of guarantees granted.

Comisión Nacional Bancaria y de Valores, Mexico

1. Resolution amending the general provisions applicable to credit institutions (Issued on 04/15/19)

Issues regulations regarding the payment orders that will be charged through ATMs.

More information: https://bit.ly/2nMa8Co

2. Resolution amending the general provisions applicable to the use of the Sistema Electrónico de

Autorizaciones for the organization and operation of entities (Issued on 04/15/19)

Issues regulations regarding the use of the electronic system instrumented and administered by the

Comisión Nacional Bancaria y de Valores for the secure exchange of information and the proper

integration of files.

More information: https://bit.ly/2nMa8Co


https://bit.ly/2MPgkSS

https://bit.ly/2nMa8Co

https://bit.ly/2nMa8Co

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ASBA Events

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Superintendencia de Bancos y Otras Instituciones Financieras, Nicaragua

1. Resolution No. CD-SIBOIF-1105-1-ABR2-2019 (Issued on 04/02/19)

Establishes guidelines to obtain authorization from the Superintendencia to distribute profits.

More information: https://bit.ly/33zmMUK

2. Resolution No. CD-SIBOIF-1111-1-MAY7-2019 (Issued on 05/07/19)

Establishes temporary conditions for deferral of provisions for the loan portfolio of financial

institutions, as well as, provisions for the management of real estate received in payment or

awarded.

More information: https://bit.ly/2MFqyVE

3. Resolution No. CD-SIBOIF-1112-1-MAY16-2019 (Issued on 05/16/19)

Establishes that securities intermediaries may request the voluntary suspension of their operations

for up to a maximum period of one year.

More information: https://bit.ly/2pqxxKk

4. Resolution No. CD-SIBOIF-1116-1-JUN11-2019 (Issued on 06/11/19)

Establishes guidelines to be met by insurance companies for the management of the premiums

obtained from insurance policies and bonds.

More information: https://bit.ly/2prlDiY

Superintendencia de Bancos de Panamá, Panama

1. Agreement 5-2019 (Issued on 04/30/19)

Establishes guidelines for banks and fiduciaries that provide services as alternative insurance

marketing channels.

More information: https://bit.ly/2XEg4x9

2. Agreement 6-2019 (Issued on 05/28/19)

Modifies Agreement No. 003-2018 that establishes the capital requirements for the financial

instruments registered in the trading portfolio.

More information: https://bit.ly/31jOJy2


https://bit.ly/33zmMUK

https://bit.ly/2MFqyVE

https://bit.ly/2pqxxKk

https://bit.ly/2prlDiY

https://bit.ly/2XEg4x9

https://bit.ly/31jOJy2

20





ASBA Events

asbasupervision.com


Superintendencia de Banca, Seguros y AFP, Peru

1. Resolution SBS N° 1884-2019 (Issued on 05/02/19)

Updates the limits to the net accounting position of oversold and overbought in financial products

derived from foreign currency in order to facilitate the development of the derivatives market

within the framework of adequate risk management.

More information: https://bit.ly/32mNTC2

2. Project that updates and consolidates the regulations on business continuity management

(Published for public and industry comments on 06/14/19)

Draft standard that updates and consolidates the regulations on business continuity management by

supervised companies. The main provisions of the regulatory project are: a) incorporate the

proportionality criterion; b) establish guidelines for the development of the business continuity

management phases and c) update the provisions for reporting significant disruption of operations.

More information: https://bit.ly/32voiqV

Superintendencia de Bancos de la República Dominicana, Dominican Republic

1. Circular SIB: No. 001/19 (Issued on 05/22/19)

Approves an amendment to the Accounting Manual for Financial Institutions to adapt the

accounting record of the operations performed by the entities and the minimum information to be

disclosed in the audited financial statements which follows the International Financial Reporting

Standards (IFRS).

More information: https://bit.ly/2oJ51Dy


Issues measures regarding the selection of the external auditors' firms. It also states that the

report of the Audit Committee must be submitted to the Board of the audited entity on an annual

basis.

More information: https://bit.ly/32jij8q


Provides that the signatures of external auditors registered in the Superintendencia de Bancos must

comply with the new requirements established in Article 5 of the Regulations for External Audits.

More information: https://bit.ly/2nMzBvt


https://bit.ly/32mNTC2

https://bit.ly/32voiqV

https://bit.ly/2oJ51Dy

https://bit.ly/32jij8q

https://bit.ly/2nMzBvt

21





ASBA Events

asbasupervision.com

Regulation information, third quarter of 2019

Comisión Nacional Bancaria y de Valores, Mexico

1. Resolution amending the general provisions applicable to broadcasters of securities and other

stock market participants (Issued on 08/09/19)

Modifies provisions regarding the application of auditing standards during the external audits of

financial statements.

More information: https://bit.ly/2KnElAm

2. Resolution amending the general provisions applicable to credit institutions (Issued on 07/05/19)

Modifies provisions in order to: (i) incorporate operating tables of the credit institutions;

ii) incorporate rules applicable to direct electronic access channels, facilitate operations and block

orders; (iii) make adjustments regarding internal control; and (iv) incorporate the information that

such institutions must report, specifying the periodicity of their presentation.

More information: https://bit.ly/3286UIM; https://bit.ly/32cvKHF; https://bit.ly/2MNQoGW

Comisión Nacional para la Protección y Defensa de los Usuarios de Servicios

Financieros, Mexico

1. General provisions of CONDUSEF regarding transparency and sound practices applicable to

Financial Technology Institutions (Issued on 07/ 09/19)

Issues provisions with the purpose of having a specialized regulation in the areas of contracts,

supervision, transparency, information and publicity, regarding the products and services of the

Financial Technology Institutions.

More information: https://bit.ly/2G2zGRK

Some ASBA Associated Members and Collaborators sent information on prudential and non-prudential financial regulation issued during the third quarter of 2019. We include a brief summary of these regulations and the link to the documentation, if it is of public nature.


https://bit.ly/2KnElAm

https://bit.ly/3286UIM

https://bit.ly/32cvKHF

https://bit.ly/2MNQoGW

https://bit.ly/2G2zGRK

DISCLAIMER / COPYRIGHT Published by the Association of Supervisors of Banks of the Americas (ASBA). Its headquarters are located at C. Picacho Ajusco #238 Int. 601 Col. Jardines en la Montaña, Mexico City, Zip Code 14210, Mexico. To subscribe to this Newsletter send an email to [email protected] or call (5255) 5662-0085. Reproduction in whole or in part is prohibited without prior permission from ASBA. The information has been obtained by ASBA from sources deemed as reliable and, in most cases, publicly available or provided by an Associate Member. However, given the possibility of human and/or mechani-cal error from our sources, ASBA does not guarantee the accuracy, adequacy or completeness of any information. ASBA is not responsible for errors, omissions, or the results from using such information. The opinions and assertions contained in articles and documents published by individual authors are the sole responsibility of the authors, and do not represent the opinion of the Association of Supervisors of Banks of the Americas, its Board of Directors or the General Secretariat. ASBA reserves the right to release documents to the supervisory community in the Region, and it does not receive any payment for doing so.





ASBA Events

Subscribe to our Journal or send us comments and suggestions: Email us at [email protected]

or Call +52 (55) 5662-0085

Visit Our Website at:

http://www.asbasupervision.com/

Follow us on Twitter: https://twitter.com/ASBAnews/

22

Institutional Events

XIV High-Level Meeting

October 1 - 2, 2019.

Superintendencia de Banca, Seguros y AFP| Lima, Peru.

XXII Annual Assembly

October 2, 2019.

Superintendencia Financiera de Banca, Seguros y AFP| Lima, Peru.

Seminars

Balance Sheet and Liquidity Risk Management

October 21 - 25, 2019.

Panama City, Panama.

Gestión de Préstamos Dudosos: Aspectos Contables (NIIF 9) y Prudenciales

(Only in Spanish)

October 22 - 24, 2019.

San Jose, Costa Rica.

Courses

Riesgo Tecnológico y Ciberseguridad (Only in Spanish)

October 8 - 10, 2019.

São Paulo, Brazil.

Financial Sector Surveillance (Blended Course)

Online Course: October 24, 2019 - February 21, 2020.

On-site Course: March 16 - 20, 2020.

Panama City, Panama.

Efforts in Reducing the Negative Impact of Loss of Correspondent Banking

Relationships in The Caribbean: The Supervisors and Financial Institutions Role

October 19 - 21, 2019.

Kingston, Jamaica.

Technological Financial Innovation (FinTech): Regulatory and Supervisory

Considerations for the Americas

December 16 - 18, 2019.

Mexico City, Mexico.

http://www.asbasupervision.com/en/capacity-development/continental-training-program/liquidity-risk-management-seminar



http://www.asbasupervision.com/en/capacity-development/continental-training-program/gestion-de-prestamos-dudosos-non-performing-loans-aspectos-contables-ifrs-9-y-prudenciales-only-in-spanish



http://www.asbasupervision.com/es/desarrollo-de-capacidades/programa-de-capacitacion-continental/riesgo-tecnologico-y-ciberseguridad



http://www.asbasupervision.com/en/capacity-development/continental-training-program/blended-course-financial-sector-surveillance-fss




http://www.asbasupervision.com/en/capacity-development/continental-training-program/bid




http://www.asbasupervision.com/en/capacity-development/continental-training-program/technological-financial-innovation-fintech-regulatory-and-supervisory-considerations-for-the-americas




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