New Regulations For Banking Liquidity

©image: kevin rawlings

Edgar Barquín, head of the Superintendence, explained that the proposed regulation intends to comply with Basel accords and strengthen risk-based supervision.

Barquín added that "... they want banks to execute strategies which include credit profiling, policies for risk management and adequate liquidity controls".

Source: elperiodico.com.gt

More on this topic

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February 2009

The Superintendence of Banks (SIB) will present the reforms to the Law of Banks and Financial Groups to Congress in March.

PRENSALIBRE.com 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."

Modifications to the Banking Law of Guatemala in 2009

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Banks and financial entities, as well as some companies, will have to give account to the Superintendence of Banks next year.

The regulations include modifications to the Law that governs banks and financial groups in order for the Bank of Gualterio to be able to grand longer term loans to the banking system and to increase the participation of the financial system in the Savings Protection Fund, said the Banking Superintendent, Édgar Barquín.

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The president of the Banco de Guatemala, Edgar Barquin, said the bank plans for this year an increase in bank credit of 12.2%.

"Luis Lara, manager of Industrial Bank, said credit demand of individuals and companies have recovered since October 2010 and coincides with the growth of this variable estimated at 12 percent because it is expected for the economy to recover after the effects of the global financial crisis", reports the article in Elperiodico.com.gt.

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Guatemala's banks are born and die more fequently that is desirable for a solid, stable and reliable banking system, says Carlos Mendoza.

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