Costs of Financial Supervision

The government of Costa Rica is promoting a legal reform that would transfer the cost of financial supervision to banking institutions, insurance companies and pension operators.

Tuesday, April 24, 2012

The legal amendment was included in the Bill for the Efficient Management of Public Finances already sent to the Legislature.

So far, "the Central Bank is funding 80% of the operation of the Superintendent of Financial Institutions (Sugef), the Superintendent of Securities (Sugeval), the Superintendent of Pensions (Supen) and the Superintendent of Insurance (SUGESE)," reported Nacion.com.

For 2012, the total budget of supervisory bodies is ¢23,000 million ($46 million).

"The idea is that all those being supervised pay for the cost of supervision. That's true in many countries," said Luis Liberman, Vice President.

For his part, Fernando Naranjo, manager of the Banco Nacional, said the move could have consequences in two ways: an increase in the cost of financial services and a loss of independence of supervisors.

"I have serious ethical reservations about the suitability of this proposed change. I would have expected the opposite, that the supervised institutions do not contribute to the financing of regulators," said Naranjo.

¿Busca soluciones de inteligencia comercial para su empresa?



More on this topic

Financial Cooperatives in Costa Rica

October 2012

For the volume of assets and loan portfolios they manage, cooperatives together make up the fourth largest financial operator ivn the country.

In Costa Rica, the 30 cooperatives under the supervision of the Superintendent of Financial Institutions (Sugef) exceed in value the assets and loan portfolio of the "private bank BAC San José and are below the banks, Banco Nacional, Banco de Costa Rica and Banco Popular which are funded by public capital. "

Costly Superintendencies in Costa Rica

October 2012

The operations of the supervisory agencies for financial institutions, pensions companies, the stock market, and insurance market, has an annual cost of $48 million.

The government of Costa Rica is trying to organize it so that the institutions regulated by these superintendents, assume a greater share of these costs, 80% of which so far are paid by the Central Bank.

Changes to Pension Operators Costa Rica

December 2011

The Superintendency of Pensions is studying changing the rules for the transfer of members between companies, to reduce administrative costs.

The rate of transfer of members between pension operators (OPC) in Costa Rica is the highest in Latin America. In Mexico, Chile, Peru, Panama and Uruguay, the rate is less than 6%, while in Costa Rica it is 12%.

Public consultations to be held on regulations for insurance companies in Costa Rica

August 2008

These will be the first guidelines that will be used to regulate the insurance market that up to now has been monopolized by the National Insurance Institute (INS).

The Connassif (the Financial Regulatory Body in Costa Rica) approved the regulations for insurance companies and will hold public consultations for ten days.

ok