Guatemala: Rules Published for Rating Agencies

The Monetary Board has issued regulations governing the registration of local rating agencies, and the requirement for all financial institutions to be qualified.

Wednesday, April 24, 2013

In addition the Monetary Board (MB), published the regulation on Concentration in Contingencies and Investments as well as issues related to the operating permits for offshore entities, regulations that are part of the changes made to the Banking Act and financial groups that were in effect before April 1.

The first of the regulations states that banks, finance companies, offshore entities and insurers and reinsurers should have their first credit rating from January to June 2014. The second is the regulation on Concentration of Contingencies and Investments, which regulates the limits on financing provided by banks, finance companies and offshore entities to their shareholders or related companies.

The third regulation establishes the operating permits for offshore entities. "Among other things, the statute mandates that offshore companies may not open accounts for less than $10,000. In the case of deposits, they must be made and remain outside national territory, and the deposits are not covered by the Saver Protection Fund ", reported

More on this topic

Guatemala: Regulation on Rating Agency Operations

April 2013

Rating agencies registration is now mandatory and banking institutions must be rated by one of them.

Rating agencies will have to submit their paperwork to the Superintendency of Banks (SIB). According to the chairman of the Monetary Board (JM) and the Bank of Guatemala (Banguat), Edgar Barquin, "among the amendments to the Law on Banks and Financial Groups is the addition that now banks must have a risk rating" .

Guatemalan Banking Law Moves Forward

February 2010

The economy committee of Congress approved a series of changes to the Banking and Financial Groups Law.

The new regulation would come into effect on January 2011. It “obliges banks to hire risk rating companies, limits loans to shareholders, imposes off shoring limits, gives more power to exclusion boards, increases contributions to the Saver Protection Fund (Fopa) and removes value-added tax when purchasing banking portfolios”, reported

Guatemala: Banking Law to be Reformed in November

October 2009

The commission studying the law project in Congress could approve it in November.

The initiative, presented by the Banking Superintendence, intends to reform thirteen articles while adding six to the Banks and Financial Groups Law, and modify one item from the Organic Law of the Central Bank of Gutemala (Banguat).

Guatemala prepares for Banking law reform

February 2009

The Superintendence of Banks (SIB) will present the reforms to the Law of Banks and Financial Groups to Congress in March. reports: "According to the head of SIB, Edgar Barquin, the new amendments, which are still being fine tuned, will provide more power to the entity supervising the financial system, to the Monetary Board, and other boards, to deal with resolutions for banks that have been taken over."

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