Note: The data are provided for informational purposes only and in some cases, the information may be incomplete, not fully accurate or out of date. For more information on how data are compiled, see "A Note About Sources." The date of the last update for each country is marked in the section "Country Indicators." We welcome updates and comments. Click here to write to us.
Peru
Country Indicators
Information Last Updated
September 2006
Information Compiled by
IRIS Center (in collaboration with Alfredo Ebentreich)
Information Verified by
Alfredo Ebentreich, Senior Analyst, Perú Superintendency of Banking, Insurance, and Private Pension Fund Administrators.
Ownership structure of banks (and financial institutions if available)
There are 11 commercial banks. Four of them are owned by Peruvian nationals, including the largest one, Banco de Credito del Peru. The remaining seven banks are controlled or largely owned by foreigners.
Formal and Semi-Formal Sources of Microfinance
There are several commercial banks in microfinance. Aside from these, in Peru there are three types of regulated microfinance institutions: municipal savings and loan institutions (Cajas Municipales de Ahorro y Credito [CMACs]); rural savings and loan institutions (Cajas Rurales de Ahorro y Credito [CRACs]); and entities for the development of small and micro enterprises (Entidades de Desarollo de la Pequeña y Micro Empresa [EDPYMEs]).
Corporacion Financiera de Desarrollo (COFIDE), a second-tier state-owned financial institution; Fondo Mivivienda (for mortgage loans) (COFIDE [Spanish]); (Fondo Mivivienda [Spanish]).
Definitions of microfinance or microcredit
Superintendency of Banking, Insurance, and Private Pension Fund Administrators (SBS) defines loans to small and microenterprises as loans granted for productive purposes that are less than US$ 30,000 (Resolution N° 808-2003, Section 1.2 [Spanish]).
NGO microfinance provider formalization or transformation issues
Most of the currently existing EDPYMEs were formerly Credit NGOs. These organizations transformed because they wanted to be regulated and/or wanted to avoid paying VAT on interest earned on their loans. There are still many NGOs that offer credit to their clients, and are not regulated nor supervised by the SBS. More information on these credit NGOs is available from the consortium of private organizations that supports the development of small and microenterprises (COPEME [Spanish]).
Ongoing microfinance policy development status
There has been a recent change in the Modular Scheme, which makes it easier for microfinance institutions to gain approval for the provision of new services and operations under the regulatory framework (See Resolution No. 1122-2006 (Spanish))
Non-deposit-taking microfinance services. Although EDPYMEs are not allowed to take deposits, under the Modular Scheme, they might eventually take deposits from the public after completing certain requirements (see Law Nº 26702, Arts. 288, 290).
Municipal Savings and Loan Institutions
Supreme Decree No. 157-90-EF [Spanish]; General Law of the Financial and Insurance Systems (Law Nº 26702)
A deposit-taking financial institution specializing in the financing of small and micro enterprises. CMACs are owned by local provincial governments.
Provision of deposit-taking services for SMEs by institutions run by local provincial governments.
Rural Savings and Loan Institutions
General Law of the Financial and Insurance Systems (Law Nº 26702)
A deposit-taking financial institution specializing in the financing of small and micro enterprises in rural areas. Often owned by local entrepreneurs.
Superintendency of Banking, Insurance and Private Pension Funds (SBS).
Corporate
No maximum holdings per individual or related group. Individuals or related groups acquiring 1% or more of the institution's stock in a 12-month period -- or any amount of stock that gives the individual or group aggregate holdings of 3% or more -- must supply the SBS with any requested information regarding its economic activities and structure of assets. Public officials and majority owners of a similar institution type limited to max. 5% of institution's stock. Transfers that would give a party over 10% of the institution's stock require SBS authorization (Law Nº 26702, Arts. 50-51, 54-57)
There is no registration fee. Under the law, the SBS must issue a resolution with respect to authorization within 120 days after complete application materials have been received. However, the entire process takes at least a year and requires extensive documentation (Resolution SBS Nº 600-98 [Spanish]); (Law Nº 26702, Art. 21).
Superintendency of Banking, Insurance and Private Pension Funds (SBS).
Corporate
No maximum holdings per individual or related group. Individuals or related groups acquiring 1% or more of the institution's stock in a 12-month period -- or any amount of stock that gives the individual or group aggregate holdings of 3% or more -- must supply the SBS with any requested information regarding its economic activities and structure of assets. Public officials and majority owners of a similar institution type limited to max. 5% of institution's stock. Transfers that would give a party over 10% of the institution's stock require SBS authorization (Law Nº 26702, Arts. 50-51, 54-57)
There is no registration fee. Under the law, the SBS must issue a resolution with respect to authorization within 120 days after complete application materials have been received. However, the entire process takes at least a year and requires extensive documentation (Resolution SBS Nº 600-98 [Spanish]); (Law Nº 26702, Art. 21).
Superintendency of Banking, Insurance and Private Pension Funds (SBS).
Originally state (province) –owned, transition to private corporation
No maximum holdings per individual or related group. Individuals or related groups acquiring 1% or more of the institution's stock in a 12-month period -- or any amount of stock that gives the individual or group aggregate holdings of 3% or more -- must supply the SBS with any requested information regarding its economic activities and structure of assets. Public officials and majority owners of a similar institution type limited to max. 5% of institution's stock. Transfers that would give a party over 10% of the institution's stock require SBS authorization (Law Nº 26702, Arts. 50-51, 54-57)
There is no registration fee. Under the law, the SBS must issue a resolution with respect to authorization within 120 days after complete application materials have been received. However, the entire process takes at least a year and requires extensive documentation (Resolution SBS Nº 600-98 [Spanish]); (Law Nº 26702, Art. 21).
Superintendency of Banking, Insurance and Private Pension Funds (SBS).
Corporate
No maximum holdings per individual or related group. Individuals or related groups acquiring 1% or more of the institution's stock in a 12-month period -- or any amount of stock that gives the individual or group aggregate holdings of 3% or more -- must supply the SBS with any requested information regarding its economic activities and structure of assets. Public officials and majority owners of a similar institution type limited to max. 5% of institution's stock. Transfers that would give a party over 10% of the institution's stock require SBS authorization (Law Nº 26702, Arts. 50-51, 54-57)
There is no registration fee. Under the law, the SBS must issue a resolution with respect to authorization within 120 days after complete application materials have been received. However, the entire process takes at least a year and requires extensive documentation (Resolution SBS Nº 600-98 [Spanish]); (Law Nº 26702, Art. 21).
Licensing Requirements and Standards
Standards for ownership officers
Feasibility study/business plan
Operating Manuals
Prohibited sources of funds
Banks
Commercial Banks
Organizers: Must have sufficient moral integrity and financial capacity. The following are prohibited: those previously convicted of drug, terrorism, national security, or fraud-related crimes; those prohibited by law from engaging in commerce; those declared insolvent or bankrupt; government officials (national and local); financial regulators; Directors or employees of a similar institution type; those whose documents have been questioned by the SBS in the last 5 years without resolution to the SBS's satisfaction; those who were found to administratively responsible for sanctions while directing or managing a financial institution or other company. Shareholders: The following are prohibited: those previously convicted of drug, terrorism, national security, or fraud-related crimes; employees of the National Supervisory Commission of Firms and Stocks (CONASEV) or SBS; those who were found to administratively responsible for sanctions while directing or managing a financial institution or other company. Directors: Min. 5 Directors. Must satisfy technical skills and moral integrity requirements, including all requirements for Organizers and Shareholders (see above). May not be institution's employees (except General Manager). May not have overdue loans exceeding 120 days (or represent a company with such loans) (Law Nº 26702
, Arts. 19, 20, 52, 54, 79, 81).
Feasibility study, market survey in proposed area of operation, and three years’ financial projections required.
Policies, regulations, and operating manuals are required. The existence of -- and compliance with -- these policies, regulations, and operating manuals are verified during on-site inspections.
No restrictions on the currency or the lender (except in special circumstances). However, the equity of any financial institution in Peru has to be denominated in local currency.
Non-bank Financial Institutions
EDPYMEs
Organizers: Must have sufficient moral integrity and financial capacity. The following are prohibited: those previously convicted of drug, terrorism, national security, or fraud-related crimes; those prohibited by law from engaging in commerce; those declared insolvent or bankrupt; government officials (national and local); financial regulators; Directors or employees of a similar institution type; those whose documents have been questioned by the SBS in the last 5 years without resolution to the SBS's satisfaction; those who were found to administratively responsible for sanctions while directing or managing a financial institution or other company. Shareholders: The following are prohibited: those previously convicted of drug, terrorism, national security, or fraud-related crimes; employees of the National Supervisory Commission of Firms and Stocks (CONASEV) or SBS; those who were found to administratively responsible for sanctions while directing or managing a financial institution or other company. Directors: Min. 5 Directors. Must satisfy technical skills and moral integrity requirements, including all requirements for Organizers and Shareholders (see above). May not be institution's employees (except General Manager). May not have overdue loans exceeding 120 days (or represent a company with such loans) (Law Nº 26702
, Arts. 19, 20, 52, 54, 79, 81).
Feasibility study, market survey in proposed area of operation, and three years’ financial projections required.
Policies, regulations, and operating manuals are required. The existence of -- and compliance with -- these policies, regulations, and operating manuals are verified during on-site inspections.
No restrictions on the currency or the lender (except in special circumstances). However, the equity of any financial institution in Peru has to be denominated in local currency.
Municipal Savings and Loan Institutions
Organizers: Must have sufficient moral integrity and financial capacity. The following are prohibited: those previously convicted of drug, terrorism, national security, or fraud-related crimes; those prohibited by law from engaging in commerce; those declared insolvent or bankrupt; government officials (national and local); financial regulators; Directors or employees of a similar institution type; those whose documents have been questioned by the SBS in the last 5 years without resolution to the SBS's satisfaction; those who were found to administratively responsible for sanctions while directing or managing a financial institution or other company. Shareholders: The following are prohibited: those previously convicted of drug, terrorism, national security, or fraud-related crimes; employees of the National Supervisory Commission of Firms and Stocks (CONASEV) or SBS; those who were found to administratively responsible for sanctions while directing or managing a financial institution or other company. Directors: Min. 5 Directors. Must satisfy technical skills and moral integrity requirements, including all requirements for Organizers and Shareholders (see above). May not be institution's employees (except General Manager). May not have overdue loans exceeding 120 days (or represent a company with such loans) (Law Nº 26702, Arts. 19, 20, 52, 54, 79, 81).
Feasibility study, market survey in proposed area of operation, and three years’ financial projections required .
Policies, regulations, and operating manuals are required. The existence of -- and compliance with -- these policies, regulations, and operating manuals are verified during on-site inspections.
No restrictions on the currency or the lender (except in special circumstances). However, the equity of any financial institution in Peru has to be denominated in local currency.
Rural Savings and Loan Institutions
Organizers: Must have sufficient moral integrity and financial capacity. The following are prohibited: those previously convicted of drug, terrorism, national security, or fraud-related crimes; those prohibited by law from engaging in commerce; those declared insolvent or bankrupt; government officials (national and local); financial regulators; Directors or employees of a similar institution type; those whose documents have been questioned by the SBS in the last 5 years without resolution to the SBS's satisfaction; those who were found to administratively responsible for sanctions while directing or managing a financial institution or other company. Shareholders: The following are prohibited: those previously convicted of drug, terrorism, national security, or fraud-related crimes; employees of the National Supervisory Commission of Firms and Stocks (CONASEV) or SBS; those who were found to administratively responsible for sanctions while directing or managing a financial institution or other company. Directors: Min. 5 Directors. Must satisfy technical skills and moral integrity requirements, including all requirements for Organizers and Shareholders (see above). May not be institution's employees (except General Manager). May not have overdue loans exceeding 120 days (or represent a company with such loans) (Law Nº 26702, Arts. 19, 20, 52, 54, 79, 81).
Feasibility study, market survey in proposed area of operation, and three years’ financial projections required.
Policies, regulations, and operating manuals are required. The existence of -- and compliance with -- these policies, regulations, and operating manuals are verified during on-site inspections.
No restrictions on the currency or the lender (except in special circumstances). However, the equity of any financial institution in Peru has to be denominated in local currency.
Capital and Reserves
Minimum capital
Minimum capital adequacy/gearing ratios
Forms of capital recognized
Risk-weighting of assets
Loan loss provisioning, write-off
Reserves, Liquidity requirements
Banks
Commercial Banks
US$ 6.4 million (PEN 20.7 million) (for July-September 2006). This capital changes quarterly according to the wholesale price index (Law Nº 26702
, Articles 16, 18) (Circular No. G-126-2006)
Risk-weighted assets can not exceed 11 times regulatory capital (i.e., mínimum capital ratio of 9.1%) (Law Nº 26702, Article 199).
Paid capital, subordinated capital, legal reserves, provisions on good loans (up to 1% of the loan portfolio), etc. (for more information, see Law Nº 26702, Articles 184-187).
Determined by type of issuer and level of liquidity. Meets Basel I standards. There are five categories: Category I (0%), Category II (10%), Category III (20%), Category IV (50%), and Category V (100%) (for more information, see Law Nº 26702, Articles 188-196).
Specifically for microcredit: 1-8 days past due: 1% 9-30 days past due: 5% 31-60 days past due: 25% 61-120 days past due: 60% 120 days or more: 100% (with specific collateral, provision rates are lower) (Resolution N° 808-2003, Chapter II, Section III; Chapter III, Section II).
Liquidity requirements: 8% of liquid assets in local currency with respect to short-term liabilities; 20% for foreign currency assets and liabilities.Reserves at the Central Bank: 20% of foreign-currency denominated deposits, and 6% for local-currency denominated deposits (Resolution SBS No. 472-2001 (Spanish), Circular 17-2006-BCRP, Circular 11-2006-BCRP).
Non-bank Financial Institutions
EDPYMEs
US$ 289,000 (PEN 939,000) (for July-September 2006). This capital changes quarterly according to the wholesale price index (Law Nº 26702
, Articles 16, 18) (Circular No. G-126-2006)
Risk-weighted assets can not exceed 11 times regulatory capital (i.e., mínimum capital ratio of 9.1%) (Law Nº 26702, Article 199).
Paid capital, subordinated capital, legal reserves, provisions on good loans (up to 1% of the loan portfolio), etc. (for more information, see Law Nº 26702, Articles 184-187).
Determined by type of issuer and level of liquidity. Meets Basel I standards. There are five categories: Category I (0%), Category II (10%), Category III (20%), Category IV (50%), and Category V (100%) (for more information, see Law Nº 26702, Articles 188-196).
Specifically for microcredit: 1-8 days past due: 1% 9-30 days past due: 5% 31-60 days past due: 25% 61-120 days past due: 60% 120 days or more: 100% (with specific collateral, provision rates are lower) (Resolution N° 808-2003, Chapter II, Section III; Chapter III, Section II).
Liquidity requirements: 8% of liquid assets in local currency with respect to short-term liabilities; 20% for foreign currency assets and liabilities.Reserves at the Central Bank: 20% of foreign-currency denominated deposits, and 6% for local-currency denominated deposits (Resolution SBS No. 472-2001 (Spanish), Circular 17-2006-BCRP, Circular 11-2006-BCRP).
Municipal Savings and Loan Institutions
US$ 289,000 (PEN 939,000) (for July-September 2006). This capital changes quarterly according to the wholesale price index (Law Nº 26702
, Articles 16, 18) (Circular No. G-126-2006)
Risk-weighted assets can not exceed 11 times regulatory capital (i.e., mínimum capital ratio of 9.1%) (Law Nº 26702, Article 199).
Paid capital, subordinated capital, legal reserves, provisions on good loans (up to 1% of the loan portfolio), etc. (for more information, see Law Nº 26702, Articles 184-187).
Determined by type of issuer and level of liquidity. Meets Basel I standards. There are five categories: Category I (0%), Category II (10%), Category III (20%), Category IV (50%), and Category V (100%) (for more information, see Law Nº 26702, Articles 188-196).
Specifically for microcredit: 1-8 days past due: 1% 9-30 days past due: 5% 31-60 days past due: 25% 61-120 days past due: 60% 120 days or more: 100% (with specific collateral, provision rates are lower) (Resolution N° 808-2003, Chapter II, Section III; Chapter III, Section II).
Liquidity requirements: 8% of liquid assets in local currency with respect to short-term liabilities; 20% for foreign currency assets and liabilities.Reserves at the Central Bank: 20% of foreign-currency denominated deposits, and 6% for local-currency denominated deposits (Resolution SBS No. 472-2001 (Spanish), Circular 17-2006-BCRP, Circular 11-2006-BCRP).
Rural Savings and Loan Institutions
US$ 289,000 (PEN 939,000) (for July-September 2006). This capital changes quarterly according to the wholesale price index (Law Nº 26702
, Articles 16, 18) (Circular No. G-126-2006)
Risk-weighted assets can not exceed 11 times regulatory capital (i.e., mínimum capital ratio of 9.1%) (Law Nº 26702, Article 199).
Paid capital, subordinated capital, legal reserves, provisions on good loans (up to 1% of the loan portfolio), etc. (for more information, see Law Nº 26702, Articles 184-187).
Determined by type of issuer and level of liquidity. Meets Basel I standards. There are five categories: Category I (0%), Category II (10%), Category III (20%), Category IV (50%), and Category V (100%) (for more information, see Law Nº 26702, Articles 188-196).
Specifically for microcredit: 1-8 days past due: 1% 9-30 days past due: 5% 31-60 days past due: 25% 61-120 days past due: 60% 120 days or more: 100% (with specific collateral, provision rates are lower) (Resolution N° 808-2003, Chapter II, Section III; Chapter III, Section II).
Liquidity requirements: 8% of liquid assets in local currency with respect to short-term liabilities; 20% for foreign currency assets and liabilities.Reserves at the Central Bank: 20% of foreign-currency denominated deposits, and 6% for local-currency denominated deposits (Resolution SBS No. 472-2001 (Spanish), Circular 17-2006-BCRP, Circular 11-2006-BCRP).
Risk Management Guidelines
Guidelines & restrictions on financial services
Guidelines & restrictions on operational rules
Guidelines & restrictions on interest rates
Concentration of risk
Connected/insider business
Banks
Commercial Banks
Permitted: Full banking activities; see Art. 221 of the General Law of the Financial and Insurance Systems for a full list. Prohibited: See Art. 217 of the General Law of the Financial and Insurance Systems for a full list (Law Nº 26702, Articles 217, 221).
SBS authorization needed to open, close, transfer, or convert branches, except when the bank has a rating of A during the last two semesters. Financial institutions must take measures to prevent use of the institution for illegal activity and to report suspicious transactions (Circular No. B-2147-2005, Art. 3 [Spanish]) (Law Nº 26702, Articles 375-381).
None
Max Credit to Individual or Legal Entity: 10% of regulatory capital (5% if not domiciled in Peru); may increase up to 30% with liquid collateral. Max Investment in Stock Companies: 20% aggregate, 15% per company. Max. Investment in Securities of Multilateral Credit Agencies: 20% aggregate. Max. Investment in Real Property, Personal Property, and Equipment: 75% aggregate. Max. Contingent Loans and Financial Leasing with Term of over 1 Year: 400% aggregate. Max. Credit to other Financial Institutions: 30% (domestic); 5-50% (foreign) (Law Nº 26702, Articles 200, 204-211, 221).
Loans to Directors, Employees, and their Families: Max. 7% of regulatory capital (aggregate), 0.35% per individual/family. Terms may not be more favorable for employees than for other clients (except for mortgage loans for personal housing). Financing to Parties that Own or Control 4% or more of Company: Max. 30% of regulatory capital (aggregate) (Law Nº 26702, Articles 201-202).
Non-bank Financial Institutions
EDPYMEs
Credit (with or without collateral); bills of exchange, promissory notes, and other debt instruments; granting securities, guarantees, and other collateral; credit and deposit transactions with domestic companies; accepting time bills from commercial transactions; foreign currency operations; acquiring real property, personal property, and equipment; collections, payments, fund transfers, and issuance of bank drafts; trustee functions. All other financial services may be permitted subject to SBS approval, which is contingent upon demonstrating compliance with requirements under the modular scheme. Prohibited: See Art. 217 of the General Law of the Financial and Insurance Systems for a full list (see Law Nº 26702, Articles 211, 217, 288, 290).
SBS authorization needed to open, close, transfer, or convert branches. A simplified authorization process applies when the EDPYME has a rating of A or B for the last two semesters. Financial institutions must take measures to prevent use of the institution for illegal activity and to report suspicious transactions (Law Nº 26702, Articles 375-381); (Circular No. B-2147-2005, Art. 3 [Spanish]).
None
Max Credit to Individual or Legal Entity: 10% of regulatory capital (5% if not domiciled in Peru); may increase up to 30% with liquid collateral. Max Investment in Stock Companies: 20% aggregate, 15% per company. Max. Investment in Securities of Multilateral Credit Agencies: 20% aggregate. Max. Investment in Real Property, Personal Property, and Equipment: 75% aggregate. Max. Contingent Loans and Financial Leasing with Term of over 1 Year: 400% aggregate. Max. Credit to other Financial Institutions: 30% (domestic); 5-50% (foreign) (Law Nº 26702, Articles 200, 204-211, 221).
Loans to Directors, Employees, and their Families: Max. 7% of regulatory capital (aggregate), 0.35% per individual/family. Terms may not be more favorable for employees than for other clients (except for mortgage loans for personal housing). Financing to Parties that Own or Control 4% or more of Company: Max. 30% of regulatory capital (aggregate) (Law Nº 26702, Articles 201-202).
Municipal Savings and Loan Institutions
Savings and pawn loans permitted in 1st year, and later microenterprise loans (3rd year); foreign currency operations; collections, payments, fund transfers, and issuance of bank drafts; trustee functions. All other financial services may be permitted subject to SBS approval, which is contingent upon demonstrating compliance with requirements under the modular scheme. Prohibited: See Art. 217 of the General Law of the Financial and Insurance Systems for a full list (Supreme Decree No. 157-90-EF [Spanish]) (Law Nº 26702
, Articles 211, 217, 286, 290).
SBS authorization needed to open, close, transfer, or convert branches. A simplified authorization process applies when the CMAC has a rating of A or B for the last two semesters. Financial institutions must take measures to prevent use of the institution for illegal activity and to report suspicious transactions (Law Nº 26702, Articles 375-381); (Circular No. B-2147-2005, Art. 3 [Spanish])
None
Max Credit to Individual or Legal Entity: 10% of regulatory capital (5% if not domiciled in Peru); may increase up to 30% with liquid collateral. Max Investment in Stock Companies: 20% aggregate, 15% per company. Max. Investment in Securities of Multilateral Credit Agencies: 20% aggregate. Max. Investment in Real Property, Personal Property, and Equipment: 75% aggregate. Max. Contingent Loans and Financial Leasing with Term of over 1 Year: 400% aggregate. Max. Credit to other Financial Institutions: 30% (domestic); 5-50% (foreign) (Law Nº 26702, Articles 200, 204-211, 221).
Loans to Directors, Employees, and their Families: Max. 7% of regulatory capital (aggregate), 0.35% per individual/family. Terms may not be more favorable for employees than for other clients (except for mortgage loans for personal housing). Financing to Parties that Own or Control 4% or more of Company: Max. 30% of regulatory capital (aggregate) (Law Nº 26702, Articles 201-202).
Rural Savings and Loan Institutions
Term and savings deposits; credit (with or without collateral); granting securities, guarantees, and other collateral; credit and deposit transactions with domestic companies; offering credits and guarantees jointly with other companies (may acquire and negotiate certificates of deposit in the process); accepting time bills from commercial transactions; deposit and credit transactions with foreign financial institutions; foreign currency operations; investment of foreign funds in Perú; acquiring real property, personal property, and equipment; collections, payments, fund transfers, and issuance of bank drafts; trustee functions. All other financial services may be permitted subject to SBS approval, which is contingent upon demonstrating compliance with requirements under the modular scheme. Prohibited: See Art. 217 of the General Law of the Financial and Insurance Systems for a full list (see Law Nº 26702, Articles 211, 217, 285, 290).
SBS authorization needed to open, close, transfer, or convert branches. A simplified authorization process applies when the CRAC has a rating of A or B for the last two semesters. Financial institutions must take measures to prevent use of the institution for illegal activity and to report suspicious transactions (Law Nº 26702, Articles 375-381); (Circular No. B-2147-2005, Art. 3 [Spanish])
None
Max Credit to Individual or Legal Entity: 10% of regulatory capital (5% if not domiciled in Peru); may increase up to 30% with liquid collateral. Max Investment in Stock Companies: 20% aggregate, 15% per company. Max. Investment in Securities of Multilateral Credit Agencies: 20% aggregate. Max. Investment in Real Property, Personal Property, and Equipment: 75% aggregate. Max. Contingent Loans and Financial Leasing with Term of over 1 Year: 400% aggregate. Max. Credit to other Financial Institutions: 30% (domestic); 5-50% (foreign) (Law Nº 26702, Articles 200, 204-211, 221).
Loans to Directors, Employees, and their Families: Max. 7% of regulatory capital (aggregate), 0.35% per individual/family. Terms may not be more favorable for employees than for other clients (except for mortgage loans for personal housing). Financing to Parties that Own or Control 4% or more of Company: Max. 30% of regulatory capital (aggregate) (Law Nº 26702, Articles 201-202).
Reporting and Supervision
Supervision Method
Supervision costs and fees
Disclosure and reporting requirements
Depositor protection mechanisms (e.g., deposit insurance or lender of last resort)
Banks
Commercial Banks
Off-site supervision based on gathering of financial information sent on a monthly basis by each financial institution. On-site inspections visits are held regularly once a year, and sometimes more often (Law Nº 26702, Articles 357).
Banking Supervision (SBS) charges a fee based on financial institutions assets. The fee must be lower than 0.2%, and varies according to the rating received from the rating agency (higher fees are for lower ratings) (Law Nº 26702, Article 374).
REPORTING. Annually: Cash flow statement. Twice Annually: Changes in net worth. Monthly: General balance statements, profit & loss statements, reports of loan portfolio quality, interest rate risk, foreign exchange risk, and many others (based on permitted operations -- see "Complete List of Reporting Requirements" for full list). DISCLOSURE. Quarterly: Must publish balance statement, profit & loss statement, and risk-weighted assets report in either the Official Newspaper or in both a national paper and a local paper where the financial institution's headquarters are located (Complete List of Reporting Requirements, SBS [Spanish]; Accounting Manual, Chapter 2, Section C; Chapter 1, Section F [Spanish]).
Deposit Insurance Fund, which covers deposits from the public up to approx. US$ 23,000 (PEN 75,554) (as of June-August 2006) (Circular B-2156-20062) (Law Nº 26702, Arts. 144-157).
Non-bank Financial Institutions
EDPYMEs
Off-site supervision based on gathering of financial information sent on a monthly basis by each financial institution. On-site inspections visits are held regularly once a year, and sometimes more often.
Banking Supervision (SBS) charges a fee based on financial institutions assets. The fee must be lower than 0.2%, and varies according to the rating received from the rating agency (higher fees are for lower ratings) (Law Nº 26702, Article 374).
REPORTING. Annually: Cash flow statement. Twice Annually: Changes in net worth. Monthly: General balance statements, profit & loss statements, reports of loan portfolio quality, interest rate risk, foreign exchange risk, and many others (based on permitted operations -- see "Complete List of Reporting Requirements" for full list). DISCLOSURE. Quarterly: Must publish balance statement, profit & loss statement, and risk-weighted assets report in either the Official Newspaper or in both a national paper and a local paper where the financial institution's headquarters are located (Complete List of Reporting Requirements, SBS [Spanish]; Accounting Manual, Chapter 2, Section C; Chapter 1, Section F [Spanish]).
N/A, as EDPYMEs are not currently authorized to take deposits. However, if they become authorized under the Modular Scheme, they would be subject to the same rules as for other deposit-taking financial institutions (see Law Nº 26702, Arts. 288, 290).
Municipal Savings and Loan Institutions
Off-site supervision based on gathering of financial information sent on a monthly basis by each financial institution. On-site inspections visits are held regularly once a year, and sometimes more often. CMACs receive additional inspections from the Peruvian Federation of Municipal Savings and Credit Banks (FEPCMAC).
Banking Supervision (SBS) charges a fee based on financial institutions assets. The fee must be lower than 0.2%, and varies according to the rating received from the rating agency (higher fees are for lower ratings) (Law Nº 26702, Article 374).
REPORTING. Annually: Cash flow statement. Twice Annually: Changes in net worth. Monthly: General balance statements, profit & loss statements, reports of loan portfolio quality, interest rate risk, foreign exchange risk, and many others (based on permitted operations -- see "Complete List of Reporting Requirements" for full list). DISCLOSURE. Quarterly: Must publish balance statement, profit & loss statement, and risk-weighted assets report in either the Official Newspaper or in both a national paper and a local paper where the financial institution's headquarters are located (Complete List of Reporting Requirements, SBS [Spanish]; Accounting Manual, Chapter 2, Section C; Chapter 1, Section F [Spanish]).
Deposit Insurance Fund, which covers deposits from the public up to approx. US$ 23,000 (PEN 75,554) (as of June-August 2006) (Circular B-2156-20062) (Law Nº 26702, Arts. 144-157).
Rural Savings and Loan Institutions
Off-site supervision based on gathering of financial information sent on a monthly basis by each financial institution. On-site inspections visits are held regularly once a year, and sometimes more often.
Banking Supervision (SBS) charges a fee based on financial institutions assets. The fee must be lower than 0.2%, and varies according to the rating received from the rating agency (higher fees are for lower ratings) (Law Nº 26702, Article 374).
REPORTING. Annually: Cash flow statement. Twice Annually: Changes in net worth. Monthly: General balance statements, profit & loss statements, reports of loan portfolio quality, interest rate risk, foreign exchange risk, and many others (based on permitted operations -- see "Complete List of Reporting Requirements" for full list). DISCLOSURE. Quarterly: Must publish balance statement, profit & loss statement, and risk-weighted assets report in either the Official Newspaper or in both a national paper and a local paper where the financial institution's headquarters are located (Complete List of Reporting Requirements, SBS [Spanish]; Accounting Manual, Chapter 2, Section C; Chapter 1, Section F [Spanish]).
Deposit Insurance Fund, which covers deposits from the public up to approx. US$ 23,000 (PEN 75,554) (as of June-August 2006) (Circular B-2156-20062) (Law Nº 26702, Arts. 144-157).
Tax Treatment
Taxes on Income
Taxes on Transactions
Taxes on Payroll
Treatment of costs, provisions, reserves
Other
General Applicability
General Applicability
Corporate income tax rate (2005): 30%; individual income tax rate: progressive, up to 30%; capital gains are taxed as income. (Deloitte Tax and Business Peru Guide)
Dividends: 4.1%. Interest: 4.99% (to non-related parties) or 30% (to related parties). Royalties: 30%. Technical assistance services provided by non-domiciled companies: 15% (Deloitte Tax and Business Peru Guide).
Other Relevant Business Legislation
Debt Enforcement and Collection
Credit Rating and Reporting Requirements: Content Requirements
Competition/Consumer protection rules: standard disclosure formats
General Applicability
General Applicability
Banking Supervision (SBS) collects the info from all debtors of the financial system, and consolidates their information in its credit bureau. It also sells the information to two private credit bureaus (Infocorp and Certicom), which complement that information with other sources (utilities, tax collector, retail stores, etc.) (INFOCORP[Spanish]) (Certicom [Spanish]).
Deposit-taking financial institutions must have a credit rating from a rating agency (Law Nº 26702, Art. 136).
The Institute for the Defense of Competition and Property Rights (INDECOPI) signed an agreement with the SBS to review complaints from clients of the financial sector. The SBS also receives and processes these complaints. In 2005, the SBS issued Resolution N° 1765-2005 to increase transparency in contracts of the financial system, and created a unit dedicated to its supervision. The Association of Banks (ASBANC) established an ombudsman of the financial client (Defensor del Cliente Financiero) to solve conflicts between banks and their clients (Resolution SBS N° 1765-2005 [Spanish]); (ASBANC [Spanish]); (Defensor del Cliente Financiero [Spanish]).
MFI-specific
MFI-specific
Regulated microfinance institutions are not required to have such ratings. However, external ratings are one of the prerequisites for authorization to perform additional operations (Resolution SBS N° 672-1997 [Spanish]); (Resolution N° 1622-2006).
