NewsWhore
02-18-2009, 02:20 PM
The Monetary Board is open to modifying various prudential regulations for banking institutions and the Banking Rules for Asset Evaluation. The latter require banks and other financial entities to regularly classify their assets according to their risk and to calculate and create allowances or reserves against those risks. The Monetary Board sent banking institutions the proposed changes and has opened a seven-day consultation period.
As reported in Diario Libre, during the Unity Summit convened by President Leonel Fernandez, the financial sector called for the authorizing that financial intermediaries be able to establish procyclical provisions of up to 2%. Businessmen requested that rules for debtor evaluation and classification be relaxed. And that the consideration of contingency operations that are generated by non-used amounts of lines of credit on credit cards be reduced to 20%.
The Monetary Board has also cleared the Superintendence of Banks so it may apply administrative measures to increase the liquidity of the financial sector, including a revision of the Manuel of Risk-based Supervision and the restructuring of interest rates to adjust them to market conditions without affecting the quality of credit.
Bank Superintendent Rafael Camilo forecast that interest rates will continue to drop significantly given the authoriteis have been relaxing monetary restrictions, as reported in El Caribe.
More... (http://www.dr1.com/index.html#2)
As reported in Diario Libre, during the Unity Summit convened by President Leonel Fernandez, the financial sector called for the authorizing that financial intermediaries be able to establish procyclical provisions of up to 2%. Businessmen requested that rules for debtor evaluation and classification be relaxed. And that the consideration of contingency operations that are generated by non-used amounts of lines of credit on credit cards be reduced to 20%.
The Monetary Board has also cleared the Superintendence of Banks so it may apply administrative measures to increase the liquidity of the financial sector, including a revision of the Manuel of Risk-based Supervision and the restructuring of interest rates to adjust them to market conditions without affecting the quality of credit.
Bank Superintendent Rafael Camilo forecast that interest rates will continue to drop significantly given the authoriteis have been relaxing monetary restrictions, as reported in El Caribe.
More... (http://www.dr1.com/index.html#2)