09 Sep COVID-19 Challenge: Innovation in Peru for Economic Reactivation and Regulatory Adaptation
The Financial System proves once again to be the backbone of the economy, fully fulfilling its role within the intermediation and payment chain ecosystem, being an instrument to sustain and reactivate companies and people. The COVID-19 pandemic has been affecting the health of millions of people worldwide and thousands of people in Peru, this has forced isolation measures and mobility restrictions that have physically reduced the payment chain and the economic activity of all businesses and sectors, some more affected than others in particular, but all sharing the global effects.
At the beginning of the emergency, the pandemic caused a default in payment of financial obligations almost entirely. In the same way, withdrawals were made of deposits, of money in the pension fund, of the CTS accounts (Compensation of Time of Service), among others. Not least, formal unemployment increased and businesses closed due to lack of online sales and / or delivery.
New Regulatory Provisions of the SBS and the BCRP.
The Superintendency of Banking, Insurance and AFP (SBS), one of the regulatory entities in Peru, leads the strategies and measures that have been adopted to face the effects on the Financial System, and has been dictating regulatory changes as a result of the pandemic. The first provisions taken by the SBS are related to loan rescheduling. The rescheduled amounts have been large, in the case of consumption, it is estimated at more than 50%, in SMBs a little more than 60% and in mortgages less than 40%. On the side of the other regulatory entity of Peru, the Central Reserve Bank of Peru (BCRP), two important provisions were issued.
Innovation in Peru for Regulatory Reports
COVID-19 has driven change and technological innovation in Peru and the world for regulatory compliance and as support for economic reactivation, which has helped to minimize the impact of the pandemic on these processes and in support to reestablish the affected economy of the countries through the implementation, reporting and monitoring of all the measures taken. Technologically innovated regulatory compliance should not be an obstacle but rather a support for the reactivation of the country, business continuity, digital transformation and new opportunities.
To read more about the regulatory changes issued by the SBS and the BCRP, the reality highlighted by COVID-19 and the lessons learned from this pandemic, read the full article by filling out the following form: