The Peruvian financial sector remains characterized by banking sector domination and concentration, low penetration, and underdeveloped non-bank segments. Similarly, the country is still facing complex challenges in controlling illicit financial flows and enforcing a robust Anti-Money Laundering and Combatting Financing of Terrorism (AML/CFT) regime. While the SBS characterizes by strong professionalism and a track record in the implementation of reforms, it has limited access to international expertise that meets the demands of the developing financial sector and the evolving international regulatory and supervisory standards and practices.

This Program aims at strengthening financial sector stability in Peru by supporting improvements in the country’s financial, insurance and pension funds regulatory and supervisory framework. An additional objective is to improve financial depth and inclusion through ensuring regulations and their implementation is evidence-based and supportive of increased financial diversity and access to finance. The ultimate beneficiaries are the public in general, including the private sector, as final users from financial services.

More up-to-date financial sector regulations that have greater compliance with international standards.

Improved financial sector supervisory practices that more effectively enforce regulations and demonstrate increased adherence to international standards.

An AML/CFT framework that demonstrates greater compliance with international standards and national plans, which is more effectively enforced.

SBS institutional processes and practices improved and staff capacity built.

Risultati principali attesi:  

Updated regulations related to Basel III, bank resolution, insurance sector risk-based supervision, IFRS implementation for the insurance sector.

Procedures, manuals, software developed for early warning macroprudential indicators, business contingency plans, and pension funds risk-based supervision.

Studies on financial sector inclusion, insurance market development, pension funds demand and supply and deposit insurance for non banking institutions.

Implementation of measures of the National AML/CFT Strategy.

AML/CFT procedures, manuals, software developed and implemented.

SBS training courses developed and implemented related to technical supervisory topics, project management and leadership.

SBS organizational development processes designed and implemented.

SBS digital transformation and data management processes and structures developed and implemented.

Risultati fasi precedenti:  

Phase I built foundations for developing regulatory and supervisory frameworks for small financial institutions- it contributed to increase financial institutions’ resilience to natural disasters through the development of Business Continuity Plans- it allowed the issuance of various regulations simplifying the opening of bank branches and easing business licensing requirements- it contributed to improve the reliability of information submitted by supervised institutions- it allowed for introducing risk-based supervision for several non-banking institutions- on the insurance sector, it supported the introduction of solvency tests based on the Swiss methodology. Finally it supported the creation of the SBS Training Centre, which since turned out essential for ensuring adequate knowledge and skills among SBS staff as well as among its supervised entities.