Summary.
The bill replaces Article 22 of Decree Law 9 of 1998 (Decreto Ley 9 de 1998) to establish an annual banking regulation and supervision fee payable to the Superintendency (Superintendencia). Banks holding a general license would pay thirty thousand balboas (B/.30,000.00) plus thirty-five (B/.35.00) balboas for each million balboas (B/.1 ,000,000.00), or fraction thereof, in total assets. Banks holding an international license would pay fifteen thousand balboas (B/.15,000.00), while those holding a representation license would pay five thousand balboas (B/.5,000.00). The fee must correspond to the costs budgeted for the Superintendency’s functions, and the agency could increase or reduce it. Any balance remaining at the close of a budget year would be transferred to a special account to cover expenses in later years. If balances remained for two consecutive budget periods, the Superintendency would have to reduce the fee to prevent further balances.
The amendment to Article 79 retains banks’ authority to set lending and deposit interest rates freely and excludes the application of other rules imposing maximum rates. It creates an exception for a rate granted as a promotion, preference or offer: for short-duration banking products, the promotional rate would remain in effect throughout the contractual relationship between the bank and borrower. If a contract bars the borrower for a specified period from selling, donating, pledging, mortgaging, otherwise transferring or encumbering property acquired through bank credit, the bank could not change lending or deposit rates until that period ends. Rate setting would also be tied to the period of any other time-limited restriction the bank imposes on the borrower. The applicable periods for both parties would have to appear in their contractual documents.
The proposed wording of Article 80 would require banks to state clearly the effective interest rate on loans and deposits, taking account of the periods established for borrowers’ restrictions and obligations. Banks would provide that information in account statements and contractual documents, or when a customer requests it. When an advertisement states a nominal rate, the bank would have to specify the condition for applying the effective rate and include both elements in the contractual documents. The Superintendency would issue rules on this subject.
The bill identifies these changes as amendments to Articles 22, 79 and 80 of Decree Law 9 of February 26, 1998 (Decreto Ley 9 de 26 de febrero de 1998), which reforms the banking regime and creates the Superintendency of Banks (Superintendencia de Bancos), systematically compiled by Executive Decree 52 of April 30, 2008 (Decreto Ejecutivo 52 de 30 de abril de 2008). It provides for commencement upon promulgation. Its provisions concern the Superintendency of Banks, banks in the specified license categories, their customers and borrowers under bank credit agreements.
What it proposes.
- Annual banking regulation and supervision fee.
- Setting and preservation of bank interest rates.
- Interest rate disclosures in contracts, advertising and account statements.
Who it would affect.
- Banks holding general, international or representation licenses.
- Bank customers.
- Borrowers under bank credit agreements.
- Superintendency of Banks.
Key points.
- Sets annual regulation and supervision fees by banking license and, for general licenses, by total assets.Art. 1
- Allows the fee to reflect supervision costs and governs remaining balances and fee reductions if balances persist for two consecutive budget periods.Art. 1
- Retains banks’ freedom to set lending and deposit rates, with an exception for promotional rates on short-duration products.Art. 2
- Prevents rate changes during time-limited contractual restrictions on borrowers concerning property acquired through bank credit.Art. 2
- Requires disclosure of effective loan and deposit rates in account statements, contractual documents or upon a customer’s request.Art. 3
- Requires the conditions for applying the effective rate when a nominal rate is advertised and assigns rulemaking to the Superintendency.Art. 3
- Identifies the amended articles and sets promulgation as the commencement point.Arts. 4-5