On December 18 2000 the Superintendency of Banks and other Financial Institutions issued Resolution 353/00 (Official Gazette 37,104, December 21 2000), in which the minimum capital requirement for all financial institutions is changed in line with current inflation rates. The resolution applies to universal, commercial, mortgage and investment banks as well as to other financial institutions regulated by the 1993 Law of Banks and other Financial Institutions. A schedule has been drawn up so that the new capital requirements can be met. It is hoped that they will be met within three semesters. Financial institutions that deal mainly with subscribing loan agreements with small enterprises may request an exemption before the superintendency.
On December 19 2000 the Central Bank issued Resolution 00/12/01 (Official Gazette 37,107, December 27 2000), in which the percentage of the bank reserve required for banks and other financial institutions regarding liabilities that originate from the acquisition of capital stock from regulated banks and financial institutions is changed. The change is achieved by means of a public auction authorized by the Financial Regulatory Board.
On December 20 2000 the Superintendency of Banks and other Financial Institutions issued Resolution 354/00 (Official Gazette 37.107, December 27 2000), in which the minimum capital requirement for loan and savings institutions (as regulated by the 1993 Law of the Loan and Savings National System) is changed. An identical schedule to that established by Resolution 353/00 has been set out.
On February 10 2001 the Presidential Office issued Statutory Decree 1,203 (Official Gazette 37.148, February 28 2001). This decree promotes the ongoing transformation of the banking sector as it strengthens its capital and rationalizes expenses. The decree orders the Superintendency of Banks and other Financial Institutions to give priority to mergers and acquisitions between savings and loan institutions and other financial institutions (mainly commercial and/or universal banks). The decree also gives the Ministry of Finance the power to propose the approval of tax incentives in order to promote the sector's transformation.
For further information on this topic please contact Reinaldo Hellmund or Juan Carlos Muller at Rodriguez & Mendoza by telephone (+58 212 285 4944) or by fax (+58 212 285 1379) or by e-mail ([email protected] or [email protected]).
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