PERU Law and Practice Contributed by: Andrés Kuan-Veng and Luis Ernesto Marín, Rubio Leguía Normand
ridad (Information Security and Cybersecurity Management Regulation), approved by SBS Resolution No 504-2021. This Regulation man - dates that financial system entities implement an information security and cybersecurity manage - ment system proportional to the size, nature and complexity of their operations. It also outlines the responsibilities of the board of directors, management, and the risk committee concern - ing the information security and cybersecurity management system. In December 2023, the SBS published its regu - latory agenda, signalling significant reforms for financial institutions to enhance risk manage - ment, compliance and market transparency. The agenda outlines the following priority areas. • Management and classification of commit - ments: the SBS has introduced definitions and criteria for the management, classifica - tion and accounting of commitments. This includes credit lines and other exposures, aiming to improve transparency and regulato - ry oversight of capital, provisions and liquidity requirements associated with these items. • Update of the Regulation for Debtor Classifi - cation and Provisions: revisions to the debtor 11. Horizon Scanning 11.1 Regulatory Developments
evaluation and classification framework aim to better align provisioning schemes with expected credit losses and international standards. This update seeks to ensure finan - cial institutions are adequately calibrated to cover credit risks while maintaining long-term sustainability. • New framework for foreign exchange credit risk: recognising the impact of currency depreciation on borrowers with obligations in foreign currencies but incomes in local cur - rency, the SBS plans to replace the current framework with a standardised methodology. This approach will unify the criteria for iden - tifying debtors exposed to foreign exchange credit risk, replacing the individual method - ologies previously developed by supervised entities. • Implementation of Basel III standards: the SBS intends to update credit risk capital requirements following the Basel III frame - work, to align with global standards. This will include a more robust and risk-sensitive treat - ment of credit exposures, tailored to Peru’s local market characteristics. • Market discipline and disclosure: in line with Basel III’s Pillar 3, the SBS plans to enhance transparency by developing a disclosure framework for financial institutions. The goal is to provide stakeholders with better insights into financial conditions and risk profiles, promoting market discipline.
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