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LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR
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DECREE NO 595
THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR,
WHEREAS:
I.-That by Legislative Decree Nº 746, dated March 22, 1991, published in the Official Journal No. 80, Tomo 311, of May 3 of the same year, the Organic Law of the Central Bank was issued The Reserve of El Salvador.
II.-That it is necessary to reform the Law described in the previous recital, so that it is in harmony with the new regulations concerning the Supervision and Regulation of the Financial System that grants new powers to the Central Reserve Bank, regarding the creation of technical regulation.
III.-That for the above effects, it is necessary to carry out reforms to the Organic Law of the Central Reserve Bank of El Salvador.
BY TANTO,
in use of its constitutional powers and on the initiative of the President of the Republic, by means of
REFORMS TO THE ORGANIC LAW OF THE CENTRAL RESERVE BANK OF EL SALVADOR
Art. 1.- Replace Article 5 as follows:
" Art. 5. The financial year of the Bank shall be the calendar year and at the end of each financial year the basic financial statements shall be drawn up, taking into account the applicable international standards and the practices adopted. by other central banks. The Financial System Superintendence will certify the Bank's financial statements.
The balance sheet and the statement of results for each financial year shall be published in the Official Journal and in a newspaper national circulation, within the first three months following the end of the relevant year, including relevant notes, the certification of the Superintendence of the Financial System and the opinion of the external auditor. The general balance sheet and the statement of results shall also be published, at least three times a year, in a national circulation paper, one of which shall be referred to at 30 June of each year. In addition, they may be published by electronic means to be determined by the Council.
The Bank shall establish an Audit Committee, in which at least three members of the Board shall be included, of which two shall not be executive. full time. "
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Art. 2.- Add a final paragraph to Article 6 as follows:
"Products that have not been actually received may not be distributed."
Art. 3.- Modify Article 10 as follows:
I. Replace literals (b), (c), (d) and (e), as follows:
" (b) A Vice-President appointed by the President of the Republic;
(c) Two directors appointed by the President of the Republic of the Republic of the Republic of the Republic of the Republic of Economy;
d) Two directors appointed by the President of the Republic of terns proposed by the College of Professionals in Economic Sciences and by the Board of Directors of the Public Accounting and Audit Profession; and
e) A Director appointed by the President of the Republic of a Terna proposed by the Universities Private, which has knowledge in economic or financial matters. "
II. Defeat the literals f) and g).
III. Replace the third and fourth points with the following:
" For each of the directors referred to in literals (c), (d) and (e) of this article, there shall be an alternate director, who shall attend the sessions with a voice but without a vote. They will be appointed in the same way as the owners to whom they will replace Council members in the event of absence.
The terns referred to in literals (c), (d) and (e) shall be proposed thirty days in advance of the termination of the period of the Director to be replaced. If the terms of the term are not proposed, the President of the Bank shall appoint them. ";
IV. Replace the sixth paragraph with the following:
" The members of the Council, prior to assuming their position, shall be required to give an affidavit regarding the non-existence of a conflict of interest for the exercise of the office, obliging them to exercise it independently of the person or entity that proposed it, in the same way with respect to the fulfilment of the requirements that the law establishes for the fulfillment of the charge and of not attending in its person causal any of the inability for the appointment and exercise of the same. ";
V. Add a seventh indent, as follows:
" Members of the Board of Directors shall be required to keep strict confidentiality on the matters dealt with and documents which, due to their quality as a member of the Board, are given to them; they shall not use or take advantage of such information for personal purposes, in favour of third parties or to the detriment of the functions and decisions of the Central Bank or of the State, in which
they shall beLEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR
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liability for damages caused without prejudice to legal or administrative actions of any nature that correspond. "
Art. 4.-Modify the first paragraph of Article 16 as follows:
" Art. 16.-Any resolution, action or omission by the Council which contravene the constitutional provisions, shall make it necessary for all members who have attended with their vote to form a resolution, in personal responsibility for the damages which has been caused in accordance with Article 245 of the Constitution. "
Art. 5.- Replace the first paragraph of Article 18 as follows:
" Art. 18.-For the members of the Council, participation in the administration or in the ownership, direct or indirect, of the capital of any of the institutions belonging to the financial system as well as the maintenance of relations shall be incompatible. professional, commercial or financial, except those arising from their status as a user of the services usually provided by the financial system's constituent institutions. "
Art. 6.- Modify Article 22 as follows:
" Art. 22.-The members of the Council may not be separated from their posts but by a decision taken by the appointing authority. Removal shall be based on any of the following grounds:
a) Stop fulfilling the requirements of your appointment;
b) Incur any of the prohibitions set forth in this Act;
c) Have been convicted of crime dolous; or
d) To have lost or been suspended in their citizen's rights. "
Art. 7.- i) Substitute (i) and (l) of Article 23 as follows:
" i) Approve, the bank's annual budget, as well as the salary and other remuneration arrangements of its directors, officials and employees, in agreement with the wage regime of the country's financial sector. This budget must be approved by 31 December of the previous year at the latest; "
" l) Dictate, after reporting the Superintendence, the rules relating to the general requirements and conditions of the financial statements of the Bank. Such financial statements shall be audited and delivered by an external auditor appointed for that purpose, which may be appointed for successive periods in accordance with the respective laws provided that it does not exceed five years. successive; "
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Art. 8.- Replace Article 49 literal (b) as follows:
"b) Ceder documents from your portfolio of credits and investments to banks and other financial system institutions, the latter in temporary form or and to acquire documents from these entities in their portfolio of loans and investments, the latter in a temporary or final form. It will have the same power with the cooperative banks, the savings and credit companies, the insurance companies, the pension fund managers and the brokerage houses. All in the conditions determined by the Council "
Art. 9.- Intercalese between Articles 49 and 50 an article 49-A, as follows:
" Art. 49-A. -By way of derogation from Article 51 of the Organic Law of the Central Reserve Bank of El Salvador, the Central Bank may be empowered to use the resources of international or regional financial organizations, central banks or other states, grants loans or any other form of liquidity financing to banks, as determined by their Board, to deal with withdrawals from deposits, only in the following cases:
(a) In the event of a structural deterioration of the liquidity of a or more institutions;
b) To prevent general system illiquidity situations financial;
c) To restore liquidity in the event of a crisis caused by a strong market contraction; and,
d) Public Calamity.
For the exercise of this faculty, the Central Bank shall have timely account all relevant information, which shall require the banks and the Superintendency in the form and means to be determined by their Board. Banks will be required to provide the Central Bank with all information required for these purposes.
The terms of granting these credits must be in harmony with the source of resources.
operations shall have the same payment ranking as the credits referred to in the literal (c) of Article 112-A of the Banking Act.
The Central Bank shall issue the respective technical standards for the application of this Article. "
Art. 10.- Intercalase between Articles 50 and 51 an article 50-A, as follows:
" Art. 50-A.-The Central Bank shall establish a Liquidity Reserve Surveillance Committee, which shall be composed of two representatives with their alternates, proposed by the institutions that constitute a Liquidity Reserve in the Central Bank. referred to, who shall comply with and verify the following requirements:
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a) Five years of experience in management or senior management positions in banking or financial institutions, at least;
b) Being of recognized honorability and economic solvency; and
c) Contar with extensive knowledge and experience in financial matters as well as in
The Board of Directors will issue regulations for the functioning of the Liquidity Reserve Surveillance Committee.
The Liquidity Reserve Surveillance Committee should follow up Quarterly as follows:
a) Compliance with the investment policy of the liquidity reserve that has been incorporated in the Central Bank in deposits or securities of the Central Bank, as well as modifications thereto;
b) Detail of the assets supporting the liquidity reserve which has been established in the Central Bank in deposits or securities of the Central Bank, in accordance with the Banking Act; and
c) Main risk assessments of investments.
The Supervisory Committee may present recommendations on the management of the Central Bank. Liquidity for the consideration of the Board.
The external auditor of the Central Bank shall carry out a special examination of the assets that make up the liquidity reserve, issuing an opinion every three months and an annual report. This opinion shall be made known to the Supervisory Committee and shall be disclosed to the public by written or electronic means, as determined by the Council. "
Art. 11.- third and fourth indent is added to Art. 54 as follows:
" In case a bank transfers credits from its loan portfolio to the Central Bank of El Salvador, material delivery of the loans will not be necessary. titles and the notification to the debtor for the perfection of the act. Notwithstanding the Central Reserve Bank of El Salvador, it will have at all times the right to demand the delivery of these securities and to notify in the form established in this article the transfer. The same procedure will be observed when it is the Central Bank that makes the transfer of loans.
The contracts concluded by the Central Bank, in the exercise of its legal powers, will not cause registration rights in the National Center. of Records. "
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Art. 12.-Replace Article 55 (e) in the following way:
" e) Sell and buy tickets, foreign currencies and trade effects. You may also conduct operations abroad with derivative products in order to manage your financial risks; "
Art. 13.- Replace Article 64 as follows:
" Art. 64.-The Bank shall prepare and publish, in due course, the main macroeconomic statistics of a monetary nature, balance of payments, national accounts and short-term indicators of foreign trade, and other indicators deemed necessary by the Bank. Council, defining the means in which they will be disclosed.
For the purposes set out in the preceding paragraph, the Central Bank's Board of Directors shall establish the nature, content and periodicity of the information to be disclosed.
The Central Government, the institutions and state-owned enterprises of an autonomous nature, the official credit institutions, municipalities, different Superintendents, banks, the Salvadoran Social Security Institute and other institutions responsible for social security, insurance companies, stock exchanges and goods, exchange houses, administrators or operators of payment and securities settlement systems, broker-dealers ' houses, and other institutions which are members of the financial system, as well as private entities financial, they will have the obligation to provide the Bank with all the information
Bank and its staff will be required to keep confidential information on the individual data provided by the Bankinstitutions, entities and persons mentioned above, and will disseminate information at the aggregate level to facilitate the analysis of the country's economic situation as well as to promote financial culture. Any official, employee, adviser, auditor or person who is served by the Bank shall be prohibited from disclosing any details of the information obtained pursuant to this article. Those who infringe this provision shall be punished in accordance with this Law, without responsibility for the Bank, without prejudice to the criminal liability to which it occurs.
In case of non-compliance with the obligation to provide The Central Bank shall, in due time, provide the Bank with all the relevant information required by the Central Bank in accordance with this Law when the non-compliance comes from subjects not supervised by the Superintendence of the Financial System. non-compliance of the subjects supervised by the aforementioned Superintendence, will be sanctioned by this one of conformity with the procedure laid down in his law. In any event, a reasonable period should be established in which the information required by the Central Bank must be provided.
The Bank may charge for the supply of the economic information it produces, when it is requested to specific purposes that require larger than published series, or in different formats than published, as determined by your Board. In any case, the amounts receivable must not exceed the cost of the Bank, the provision of the information. "
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Art. 14.- Replace Article 67 as follows:
" Art. 67.-The Bank shall ensure the normal functioning of payment and securities settlement systems, especially those which are fundamental to the efficiency and stability of the financial system. It will also dictate the technical standards that will define the income, participation, suspension and exclusion of the participants and administrators of the payment and securities settlement systems.
The operation of the payment systems may be be made by the Central Bank or by other entities.
The transactions carried out in payment systems may be carried out by electronic data exchange. For that purpose, they shall be valid for any of the participants, including the Bank, the registers or logbooks contained in the computer systems, the impressions reflecting the transactions carried out by the same registers. of digital signatures or personal identification numbers of the authorised participants in such systems. The certifications extended by the official authorized by the Bank to carry records and controls of the above will have executive force against the party that defaulted.
The Bank will charge for the services of the systems of payments, as established by your council, considering the costs involved in the provision of the service. It will also charge costs involving the provision of a service or any participation in another activity which, regardless of its functions, is entrusted to it by the Law, as determined by its Board.
Failure to comply with the rules The technical provisions referred to in this Article shall be sanctioned by the Central Bank. "
Art. 15.- Addition as the second indent of Article 71 as follows:
" The Bank may make use of microfilm, optical discs, magnetic media, electronic means or any other means to archive documents and information, in order to save in an efficient manner the records, documents and reports that correspond, including securities, in accordance with what is established by the Council. Copies or reproductions resulting from microfilm, optical disc, magnetic media, electronic means or any other means shall have the same evidentiary value as the originals provided that such copies or reproductions are certified by the Bank. "
Art. 16.-Intercalase between item 75 and 77 as follows:
" Art. 76.-The Central Bank shall formulate, analyse, evaluate and ensure the implementation of public policies in the financial sector. "
Art. 17.- Replace Article 94 as follows:
" Art. 94.- Any person who, by way of action or omission infringes this Law or does not comply with the resolutions or orders given in its application, shall be fined up to three hundred minimum urban wages in the trade sector, taking into account consideration of the aspects that the Financial System Superintendence applies to the imposition of sanctions, without prejudice to the criminal responsibilities that might affect it.
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In the event of infringements of the payment systems regulation, the Bank may impose the following penalties: fine, suspension and exclusion, depending on the impact that the offending conduct has on the normal operation of the country's payment system. "
Art. 18.- Replace Article 95 as follows:
" Art. 95.-The penalties referred to in the previous Article shall be imposed by the Bank, applying the procedure observed by the Superintendence of the Financial System in the imposition of sanctions. "
Art. 19.- Within a maximum period of 60 days from the date of this Decree, the Central Bank shall modify its accounting manual to identify the assets supporting the liquidity reserve that has been established in the Central Bank in the deposits or securities of the Central Bank. Function Continuity and Appointment
Art. 20.- The members of the Board of Directors of the Central Reserve Bank of El Salvador, who are in the exercise of their position at the time of the reform of the Law, will continue in their duties until the end of their term of office. appointment.
Within a period of not exceeding 30 days, as of the validity of this Law, the second director corresponding to the literal c) of Article 10 of the Organic Law of the Central Bank of El Salvador shall be appointed. by this Decree is modified.
Art. 21.-This Decree shall enter into force eight days after its publication in the Official Journal.
GIVEN IN THE BLUE HALL OF THE LEGISLATIVE PALACE: San Salvador, at the twentieth day of the month of January of the year two thousand eleven.
CRUZ ZEPEDA PENA, PRESIDENT.
OTHON SIGFRIDO REYES MORALES, GUILLERMO ANTONIO GALLEGOS NAVARRETE, FIRST VICE PRESIDENT. SECOND VICE-PRESIDENT.
JOSÉ FRANCISCO MERINO LÓPEZ, ALBERTO ARMANDO ROMERO RODRÍGUEZ, THIRD VICE PRESIDENT. FOURTH VICE-PRESIDENT.
FRANCISCO ROBERTO LORENZANA DURAN, FIFTH VICE PRESIDENT.
LORENA GUADALUPE PEÑA MENDOZA, CESAR HUMBERTO GARCIA AGUILERA, FIRST SECRETARY. SECOND SECRETARY.
ELIZARDO GONZÁLEZ LOVO, ROBERTO JOSÉ D' AUBUISSON MUNGUÍA, THIRD SECRETARY. FOURTH SECRETARY.
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IRMA LOURDES PALACIOS VÁSQUEZ, FIFTH SECRETARY. SIXTH SECRETARIAT.
MARIO ALBERTO TENORIO GUERRERO, SEVENTH SECRETARY.
CASA PRESIDENTIAL: San Salvador, two days in the month of February of the year two thousand eleven.
PUBESCOSE, Carlos Mauricio Funes Cartagena,
President of the Republic.
Juan Ramón Carlos Enrique Cáceres Chávez, Minister of Hacienda
Hector Miguel Antonio Dada Hirezi, Minister of Economy.
D. O. No 28 Took Nº 390 Date: 9 February 2011.
SV/adar 23-2-2011
