03 Oct Base Legal Del Encaje Bancario En Guatemala

The decision provides that the calculable reserve (or liquidity reserve) that these banks must maintain may be temporarily constituted from government bonds of the Republic of Guatemala and/or certificates of deposit in Banguat denominated in dollars only for deposits transferred from the offshore entity to the system bank that is part of the same financial group. The percentage of bank reserve requirements in domestic and foreign currencies is currently set at 14.6 percent and calculated based on the amount of deposits each company`s deposits, De Bonilla explained. For deposits currently held by banks, the calculation of minimum reserves does not change; For dollar deposits transferred from an offshore entity to the bank that is part of the same financial group, the provision allows for the temporary inclusion in this calculation of investments in government bonds of the Republic of Guatemala or dollar-denominated certificates of deposit in the Banguat; “It should be noted that both shares are largely liquid,” he added. The expert noted that the purpose of the petition is to take advantage of the wide range of operations and services that these banks can perform; and by making this gradual transfer, deposits would be subject to the bank reserve, which is a liquidity reserve that banks would have to hold in the form of immediate demand deposits in the banguat and in the form of cash in the banks` lodges and, if “conditions warrant”, at the discretion of the JM. They may also be held in the form of liquid investments in domestic or foreign securities, documents or securities. And he points out that the change in the business strategy of financial groups by transferring the deposits of the companies to the company responsible for the group could mean a change in the brokerage margins of the bank, that is, their profitability not only because of the passive interest rates agreed in companies outside the place. but also because of the need to establish the bank`s necessary reserve requirement for deposits to be transferred, so that a temporary and moderate change in the requirement for bank reserves could help to maintain an adequate financial balance in the receiving banks. “Considering that if the transfer of resources is carried out in a comprehensive manner, the deposits of the beneficiary banks would increase by about 17,000,802.1 million tons, which represents 29.5% of the total foreign currency deposits of the banking system (to 30. September 2021) and 36.5% of the total foreign currency deposits of the four corresponding companies; In this sense, banks that would absorb corporate deposits outside the market currently have a reasonable level of liquidity capitalization and profitability that would allow them to absorb these resources,” he adds. Therefore, this calculation of minimum reserves (in government bonds and Banguat certificates) will be allowed at 100% in 2022, 50% in 2023 and 25% in 2024. In this sense, from 2025, these assets could no longer be included in the calculation of the minimum reserve requirement, but only direct execution and liquidity deposits. In De Bonilla`s view, the resolution will help to ensure that the brokerage margin of these banks is not increased so that they can continue to offer competitive interest rates in their active and passive operations, as the transfer of deposits from the respective offshore unit would mean that, as stated, they would begin to be subject to the banks` minimum reserves and, for example, would start to: contribute the corresponding proportional share to FOPI.

The bank reserve is a liquidity reserve that banking institutions must maintain in order to cover the fulfilment of their obligations arising from the raising of funds. This mandatory reserve is calculated as a percentage of recoveries and must at all times take the form of direct enforceable deposits with the Bank of Guatemala, cash in bank boxes and, if circumstances warrant, liquid investments in securities, documents or securities in accordance with the provisions of the Monetary Committee (ABC of Financial Education, n.d.). It is apparent from the recitals that, in letter PABG-076-19/20 of 16 September 2021, the Chairman of ABG expressed his interest in transferring deposits from companies located outside the market or offshore companies to banking institutions in the country that are part of the same financial group, bearing in mind that currently, under the current legal framework, these institutions can carry out a wide range of operations and provide various services. in domestic and foreign currency. Articles 26, 43 and 45 of the Law on the Organs of the Bank of Guatemala (Banguat) confer this power on the JM, said María Antonieta del Cid de Bonilla, former President of the Bank of Guatemala (Banguat) and Dean of the Faculty of Economics and Economics of the Rafael Landívar University (URL). We provide you with our telephone system: +502 2208-2208 ext. 2415, 2416, 2417, 2418 and 2419. As well as our email: [email protected] It is also mentioned that the transfer of deposits from companies misdirected to the companies responsible for the financial groups, i.e. to the banks concerned, is subject to the fees that each bank must deposit monthly in the fund to protect savings, in addition to the fact that since December 2018, only four companies outside the square part of the financial groups since then have declined their active and passive activities in general. In case you wish to consult the document, please submit the request through our legislative department and therefore give priority to the desired integration. The category to which the publication belongs is in the process of integrating text and/or images, as it is an old document.

Therefore, the SIB currently receives regular information from supervised entities and carries out specific field inspections. In this sense, it will include in its work the verification of compliance with the provisions of the above-mentioned resolution. You must log in to prensalibre.com to submit a comment. The Banking Supervisory Authority (SIB) was asked how it intends to ensure strict compliance with the regulatory provisions to which the above-mentioned resolution relates, to which it replied that Article 3 of the Financial Supervision Act stipulates that the tasks of this supervisory body include compliance with and enforcement of laws. applicable rules, regulations and decisions; and to supervise the persons subject to their supervision and inspection in order to maintain adequate liquidity and solvency that enables them to fully and fully discharge their obligations and to properly assess and manage the coverage, distribution and level of risk of their investments and potential transactions. Yesterday, at the Diario de Centroamérica, the Monetary Council (JM) adopted Resolution JM 105-2021, in which it addressed the third point of the Minutes 51-2021, which was adopted at the meeting of the 1st. In accordance with article 43 of the Organic Law of the Bank of Guatemala, the Banking Association of Guatemala (ABG) has requested the adoption of temporary provisions for deposits transferred from mismanaged companies or offshore companies to the banks of the system.