PERU Law and Practice Contributed by: Andrés Kuan-Veng and Luis Ernesto Marín, Rubio Leguía Normand
depositor(s) – whether individuals or non-profit private legal entities – appears. Covered depos - its include demand deposits, savings accounts, time deposits and compensatory time sav - ings accounts (CTS). Interest accrued on these deposits is also covered from the start date or last renewal. Other types of legal entities are only covered for their demand deposits, up to the maximum coverage limit. Notably, deposits made by financial institutions with each other are not covered. The maximum coverage amount is updated quarterly. For the period from September to November 2024, it stands at PEN121,900 (approximately USD32,500). The insurance cov - erage applies to deposits that a depositor holds in each FSD member institution, up to the maxi - mum coverage limit in each institution. The FSD’s resources are primarily constituted by the premiums paid by member institutions. Addi - tionally, it receives income from fines imposed by the SBS and BCRP, as well as from deposits, securities and other assets that remain dormant in a financial institution for ten years without any movement. Exceptionally, the FSD may access lines of credit from the Public Treasury, approved through an Emergency Decree, and credit lines guaranteed by the Public Treasury under the same terms. These resources are invested according to an investment policy determined by the Board of Directors, considering criteria of safety, liquid - ity, profitability and diversification. The Banking Law prohibits the FSD from placing deposits or making investments in national financial sys - tem companies or from purchasing machinery, equipment and furniture. The primary source of income for the FSD comes from the premiums that its members pay within ten business days
after each quarter ends. These premiums are determined by the risk classification assigned to the institutions by specialised companies and by the amount of covered deposits. 7. Prudential Regime 7.1 Capital, Liquidity and Related Risk Control Requirements Adherence to Basel III Standards The SBS has progressively implemented key components of Basel III, adapting them to the Peruvian context. The framework focuses on risk-sensitive capital requirements, liquidity cov - erage and improved risk management practices. While Peru generally aligns with Basel III princi - ples, notable differences include gradual imple - mentation schedules and adjustments tailored to local market conditions. Through Legislative Decree No 1531, enacted in March 2022, various articles of the Peruvian Banking Law were amended. These amend - ments were made under the delegation of leg - islative powers to the Executive Branch, aiming to align the regulatory framework for financial system companies with Basel III standards, par - ticularly in terms of the composition of regulatory capital. The amendments revised the provisions regard - ing the regulatory capital applicable to financial system companies, limits on its calculation, and risk measurement methodologies used to determine effective capital requirements, among others. Additionally, financial system compa - nies were mandated to maintain capital buffers, including conservation buffers, countercyclical buffers and market concentration risk buffers, above the minimum requirements established by the Peruvian Banking Law. As a result of these
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