On Tuesday, December 11, the Central Bank of Costa Rica (BCCR) issued two documents outlining modifications to the Payment System Regulations. The General Superintendence of Financial Entities (SUGEF) published on Thursday, December 13, in the Official Gazette, the incorporation of new articles to the text of SUGEF Agreement 17-13 which contains general guidelines on liquidity risk management. All agreements entered into force once they were published in the Official Gazette.
In the first regulation, the BCCR stipulates that investment fund management companies may demand or offer money in the integrated liquidity market (MIL). The MIL is the means by which banking and financial entities negotiate liquidity operations, in foreign and domestic currency. The second measure enables the guarantees accepted in the MIL, so that the bank certificates of the investment funds can be used as collateral to carry out operations in the MIL.
On the other hand, the SUGEF measure requires financial institutions to send a report explaining the reasons that led to the fall of the Liquidity Coverage Indicator, when it gave them less than 100%. Within no more than five days after the presentation of this information, the entities must submit a Liquidity Restoration Plan. The plan that the entities send to SUGEF must have data on the missing amount of liquidity, sources of resources to increase their assets and the period in which 100% of the liquidity will be covered.