Actualidad Peru

More competition and wider service offering

Legislative Decree 1321

This Decree, published on 5th January 2017, encourages acknowledged top-tier banking institutions to invest in the Peruvian Financial system, guaranteeing the public’s savings and complying with the State’s duty to defend the interests of consumers and users, while protecting free competition.

Law 26702, Law on the General Financial & Insurance System and The Organizational Structure for the Banking and Insurance Authority, limits the participation of companies in the financial and insurance system in the capital and majority shareholding structure of another company with the same activity.

This decree includes a new provision and indicates that the restriction on participation in the capital of a company by another, similar one, established under current law, does not apply in the following two cases:

  • When a foreign banking firm is included in the List of Top Category Banks published by the central bank, BCR.
  • When a company in the country’s own banking system satisfies the criteria used by the BCR for inclusion in the List of Top Category Banks.

In these cases, the majority shareholder of the companies referenced may only be, in turn, a shareholder in another company of the same type.

Should a company be removed from the List of Top Category Banks or no longer fulfil one of the criteria indicated by the central bank for inclusion in said list, this will not affect the investment made at the time under the protection of this final, additional provision to the law.

The recitals of the law argue that while new companies may be set up in the search for greater competition in the Peruvian financial system, participants should always retain appropriate solvency levels, for which reason it is essential that those wishing to participate should be recognised as solvent.