2016年-世界发展银行全球_Colombia___Key_Attributes_of_Effective_Resolution_Regimes_for_Financial_Institutions_75页_815kb

Summary of the Assessment of Colombia's Financial Institution Resolution Regime

Core Content

This document presents the findings of a pilot assessment of Colombia's financial institution resolution regime conducted in 2016, in response to the request of the Colombian authorities. The assessment was carried out using the draft methodology developed by the Financial Stability Board (FSB), International Monetary Fund (IMF), and World Bank, and focused on the Key Attributes (KA) of effective resolution regimes for financial institutions.

Main Points

1. Current Resolution Regime Overview

• Authorities: The Superintendency of Financial Institutions (SFC) and the Deposit Insurance Fund (FOGAFIN) are the primary authorities responsible for resolution.
• Scope: The regime applies to all banks and systemically important financial institutions (SIFIs), but does not extend to holding companies or non-financial conglomerates.
• Resolution Tools: The SFC has the authority to take over and control failing institutions, and to apply preventive measures such as capital raising or asset transfer. However, the regime lacks direct resolution powers that override shareholder consent, such as purchase and assumption (P&A) or bridge bank mechanisms.
• Fiscal Risk: The regime does not impose losses on shareholders or unsecured creditors, and public funds are not required to be used before losses are absorbed by these parties.

2. Key Shortcomings

• Non-Viability Trigger: There is no formal mechanism to assess whether a financial institution is non-viable, which is a key requirement in the KAs.
• Shareholder and Creditors Protection: The regime does not emphasize minimizing taxpayer exposure to loss, nor does it include mechanisms to impose losses on shareholders or creditors.
• Lack of Legal Safeguards: There are no legal stays or protections for resolution actions, which could hinder the implementation of resolution measures.
• Recovery and Resolution Planning: No formal recovery or resolution planning is required for SIFIs, and this is identified as a priority for reform.
• Cross-Border Coordination: While Colombia is a host jurisdiction for three G-SIFIs, there are no formal cross-border resolution coordination mechanisms or memoranda of understanding (MOUs) with foreign authorities.

3. Institutional and Legal Framework

• Legal Basis: The regime is governed by the Organic Statute of the Financial System (EOSF) and other related laws, with the SFC and FOGAFIN having independent authority.
• Supervision: The SFC is responsible for the supervision of financial institutions, including banks, insurance, and securities firms, while the Superintendence of Corporations (SSoc) handles corporate insolvency.
• Constitutional Role: The President of the Republic has primary responsibility for regulating and supervising the financial system, with the Ministry of Finance (MHCP) and the Superintendency of Financial Institutions (SFC) playing key roles.

4. Mixed Conglomerates and Resolution Challenges

• Structure: Large financial groups in Colombia are part of mixed-function conglomerates, which include non-financial entities and real sector operations.
• Interconnectedness: These conglomerates pose resolution challenges due to their complex and opaque structures, with potential for contagion and reputational risks.
• Regulatory Need: There is a need for enhanced regulation and supervision of intra-group exposures, including limits on large and related party exposures, and transparency in financial and non-financial activities.

5. Financial System Overview

• Size and Diversity: Colombia has a large and diversified financial system, with total assets equivalent to about 150% of GDP.
• Banking Sector: Banks account for about 45% of total financial system assets, with the largest four banking groups holding over 70% of total banking assets.
• Systemic Importance: The three largest domestic banking groups are considered regionally systemic, and one of them is part of a G-SIFI (BBVA).
• Deposit Funding: The banking system is predominantly deposit-funded, with limited complexity in financial products and low interconnectedness.

Key Recommendations

• Introduce Resolution Powers: The SFC should be granted direct resolution powers, including the ability to override shareholder consent and impose losses on shareholders and creditors.
• Establish Non-Viability Triggers: Clear criteria for assessing non-viability should be developed to enable timely resolution actions.
• Implement Legal Safeguards: Legal stays and protections for resolution actions should be introduced to support the use of resolution tools.
• Enhance Recovery Planning: The SFC should require recovery and resolution planning for SIFIs, and develop a work program with specialized staff.
• Strengthen Cross-Border Cooperation: Formal MOUs and coordination mechanisms with foreign jurisdictions should be established to support cross-border resolution actions.
• Include Holding Companies in Resolution Regime: Resolution powers should be extended to holding companies to ensure comprehensive and orderly resolution of conglomerates.

Authorities' Response

• The Colombian authorities have acknowledged the need for reform and have provided a detailed self-assessment.
• They have expressed willingness to cooperate with the assessment team and have engaged in constructive discussions.
• The assessment was limited to the banking sector, and no ratings were assigned due to the use of a draft methodology.

Conclusion

While the Colombian resolution regime has managed several financial institution failures effectively, it falls short of the Key Attributes of Effective Resolution Regimes. The regime emphasizes the prevention of systemic disruption and the protection of financial stability, but lacks the tools and legal safeguards necessary for a full resolution process. The presence of mixed conglomerates and the absence of clear resolution powers and non-viability triggers represent significant challenges. Reform is needed to align the regime with international standards and to enhance the effectiveness and efficiency of financial institution resolution in Colombia.