Changes in Banking Regulations in Costa Rica

Tighter analysis of customers and better control of risk in lending are part of the changes that are being prepared by the financial regulator.

Friday, February 28, 2014

In 2013 the General Superintendence of Financial Entities (Sugef) began a process of regulatory changes for banks to continue during 2014. Tighter analysis of customers and better control of risk when granting loans are some of the changes being contemplated.

Javier Cascante, chief of the Sugef told Nacion.com that "the goal is to have a safe and stable financial system."

"One of the main changes was the requirement to perform a so-called "stress test" an analysis of affordability that will apply to all customers as of March 2015. In the past it was only carried out on those applying for a loan larger than $120,000. "

Moreover, "Sugef will send at least a dozen regulations, during the year, for approval by the National Council of Supervision of the Financial System(Conassif).

José Luis Arce, president of Conassif said: "Financial regulation is somehow an unpopular subject, a lot of the time it would be good for us to adopt measures that are expensive for banks in the short term but mean a benefit for society in the future.

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Longer Deadlines for Credit Restrictions

August 2013

Financial institutions in Costa Rica will have a maximum of 48 months to implement the new measures which restrict lending.

The information was confirmed by the National System for Financial Supervision (Conassif), which approved "11 new regulations, with a phased implementation period of up to 48 months, when the original version stipulated 36. Most of the grace periods start from 1 January 2014 ", reported Nacion.com.

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