General Regulations for Financial System Institutions

Through this law, the Bank and Insurance Regulator designates a special commission to permanently oversee the environment and quality risk of all assets held by financial institutions. The results of this oversight will be periodically reported to the Regulator.

The law regulates the repayment capacity and commercial credit coverage of credit and derivative portfolios. Methodologies for the calculation of risk are laid out in the Appendix, and must be evaluated by the Regulator. The repayment capacity and credit coverage for mortgage risk, microcredit, education credit and public investment is also regulated.

Microcredits are defined as any credit above 150 minimum wage salaries, but with sales of no less than 100,000 USD. Institutions are required to maintain their clients' information according to the guidelines provided. Credit manuals must, at a minimum, include the identification information of lenders and debtors, certification of loan approval, and any necessary information to effect payments.

Document Details

Title (Non-English): 
Normas Generales para las Instituciones del Sistema Financiero
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Date of Document: 
Saturday, January 1, 2011
Document Authors: 
Banks and Insurance Regulator of Ecuador
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