The recent amendment to the law governing the financial system in Peru includes key measures that promote the participation of new entities in the sector. It thus promotes the diversification of the range of local financial services, in particular those that offer alternatives to the traditional model, such as digital banking.
On March 20, 2022, in order to promote greater competition within the financial system and using the powers delegated in December 2021, the Peruvian Ministry of Economy and Finance (MEF) amended, by Legislative Decree No. 1531 , the General Finance and Insurance System Law and the Organic Law of the Superintendency of Banking and Insurance, approving measures that will allow the entry of new entities and allow the expansion of an alternative offer to financial services traditional in Peru.
The main amendments include: (i) reduction of capital requirements for companies that carry cash; (ii) simplification of the approval and supervision process for companies that do not collect deposits from the public; (iii) facilitating the existence of 100% digital entities or offices; and, (iv) adaptation of capital requirements, in accordance with international best practices in banking regulation and supervision (Basel III).
Among the aforementioned provisions, one of the main developments is the existence of 100% digital financial entities. Thus, the MEF has indicated that this measure is in line with its permanent policies and plans for greater financial inclusion. For these entities, it will no longer be necessary to have a main office or premises to display the authorization resolution, which must be published in such a way as to be permanently accessible to the public.
In this way, supervised financial entities should be able to continue to be competitive in a market of increasing development of digital finance, which allows for lower costs and greater alternatives for the benefit of consumers.
This Legislative Decree No. 1531 complies with the legal framework designed for the regulatory sandbox established in the regulation on the temporary conduct of activities in new models, which came into force in February 2022.