|
Banking is currently regulated by the Law 183-02. It adopts de concept of Monetary and Financial Administration which includes the Monetary Board, the Central Bank and the Superintendence of Banks.
It is up to the Monetary Board to determine the nation’s monetary exchange and financial policies, to grant and revoke authorizations to operate as financial entity, to authorize mergers, acquisitions, etc. among entities, to adopt monetary and financial regulations for the application of the law, and to adopt regulations of general application to regulate the monetary and financial system.
It is up to the Superintendence of Banks to carry on the supervision of the financial entities in order to see to the compliance of their legal obligations. This body may also impose sanctions and propose the authorization and revocations of financial entities to the Monetary Board.
The Central Bank implements and drafts the monetary, financial and exchange rate policies. It is an autonomous and public institution and it is its own legal entity.
The Banking operation is governed by the regimen of previous authorization. In that sense, to initiate its operations as a financial entity, banks have to get a previous authorization by the Monetary Board.
Banks and credit entities will be subject to the deposit insurances established by the Monetary Board.
|
