The Peruvian Banking, Insurance and Pension-Fund Supervisor (SBS) published SBS Resolution 6231/2015 amending various provisions relating to Tangible Equity for Credit Risk, the Regulation for Liquidity Risk Management and the accounting standard, in order to bring them into line with the Regulation on Repurchasing Transactions, approved under Resolution 5790/2014

According to article 4 of the resolution, it will come into force on 1st January 2016, except with respect to the presentation of Annexes N° 15-C “Monthly Liquidity Position" and N° 16-A “Liquidity Chart by Maturity Date" in the Accounting Manual, which will come into force for the information corresponding to January 2016, and with respect to the presentation of Annex N° 16-B “Stress Scenarios and Contingency Planning" in the Accounting Manual, which will come into force for the information corresponding to March 2016, and the information covered in numeral III.5, which will come into force the day after publication, and in numerals II.76, II.155, II.156, III.165 and III.20 of Annex A, which will come into force for the information corresponding to December 2015.

The most relevant changes include:

• Amendments to the Regulation for Tangible Equity Requirement for Credit Risk

Repo transactions are explicitly mentioned as within the scope of application of the Regulation for Tangible Equity Requirement for Credit Risk in the following aspects; (i) settlement and vesting risk; (ii) period of replacement and maintenance for securities trading; (iii) conditions for allocating a null discount; (iv) Maturity – standard IRB method; and, (v) Maturity - advanced IRB method.

• Amendment of the Regulation for Management of Liquidity Risk

 - Liquid assets

With this modification, the non-inclusion of certain assets in liquidity ratio calculations is regulated, when these are subject to repurchasing agreements (repos) or vest in repurchasing transactions.

- Short-term liabilities

Another modification is that to calculate liquidity ratios, obligations related to negotiable investment and to-term investments will no longer be considered short term liabilities. For such calculation the accounts payable for short sales are included as liabilities. The methodology has also been modified for the determination of short-term liabilities.

- Liquidity Contingency Plan

Finally, the amended regulation has withdrawn repurchasing agreements from the asset management foreseen in the contingency plan.

• Amendments of the Accounting Manual for Companies in the Financial System

The Accounting Manual has been modified to distinguish between deductible deferred tax assets associated to time differences and deferred tax assets associated to tax losses brought forward. Certain new accounts have been included in the catalogue of the Borrower Credit Report.