Peru's Superintendencia de Banca, Seguros y AFP (SBS) issued a new regulation setting operational concentration limits for financing provided by entities in the financial system, aiming to simplify the framework and align it with Basel Committee and OECD standards. The measure implements Legislative Decree No. 1646, which amended Peru’s General Law of the Financial and Insurance System and reduced the set of applicable concentration limits. The regulation sets rules on economic groups and the criteria to define groups of connected counterparties for single-risk purposes, as well as methodologies to calculate the new limits under Article 204 and to identify “large exposures” in line with the Basel supervisory framework. It defines a “large exposure” as financing to a counterparty or connected group that is equal to or exceeds 10% of Tier 1 regulatory capital, and also updates criteria and calculations for limits on financing to related persons under Article 202 and for exposures to directors and employees under Article 201.
Superintendencia de Banca, Seguros y AFP del Peru 2025-03-13
Peru's Superintendencia de Banca, Seguros y AFP approves new operational concentration limits regime for financial system entities
Peru's Superintendencia de Banca, Seguros y AFP issued a regulation setting operational concentration limits for financial entities, aligning with Basel Committee and OECD standards. Implementing Legislative Decree No. 1646, it defines "large exposure" as financing equal to or exceeding 10% of Tier 1 regulatory capital and updates criteria for related persons and exposures to directors and employees. It also establishes rules for economic groups and methodologies for calculating new limits.