CNBV New Package of Measures for Credit Restructuring

September 23, 2020 – The CNBV agreed to promote new measures to protect the economy of individuals and companies, with the aim of reducing their credit commitments and protecting their assets, by reducing the monthly payments to be paid through interest rate reductions or term extensions in the various modalities of consumer, mortgage, business and other loans.

For this reason, four new measures were implemented to encourage and allow banks and other intermediaries to restructure the loans of clients who request it. These measures are:

  1. Compute a lower amount of specific reserves when a restructuring is agreed with the client.
  2. Recognition of the specific reserves released by the restructuring of a loan as additional reserves.
  3. May recognize higher regulatory capital by considering additional reserves as part of complementary capital.
  4. Prudently reduce capital requirements for credit risk.

 

Additionally, the following three measures will be carried out, in order to encourage the granting of credits:

  1. The use of the capital buffer is extended until December 31, 2021.
  2. Liquidity requirements are extended until March 2021, with which banks will be able to temporarily reduce their liquidity buffers below 100% of their needs.
  3. The regulation is expanded (for legal entities) that allows the opening of accounts and contracting of credits without the need for the client to go to the branch.

 

Jurisdictions affected: Mexico

For more information, visit Comisión Nacional Bancario y de Valores.



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