REVISION OF AMENDMENTS TO THE GUATEMALAN BANKING LAW

On November 3, 2009 a multisectoral group began reviewing the proposal to reform 20 articles of the Banking and Financial Groups Law, Decree No.19-2002 of the Congress of the Republic of Guatemala, which may soon be known by the Congress.

At the meeting, convened by the Congressional Committee on Economic Affairs at the headquarters of the Banks Superintendence (SB), appeared bankers, monetary authorities, analysts and lawmakers.


The mayor and most discussed topic was that the amendments to the Depositors Protection Fund. Currently, banks must contribute to this fund 1.50 quetazales (US$0.18) per every thousand dollars deposited (US$119.80), and the proposal is to go to 2.00 quetzales (US$0.24) per thousand dollars (US$119.80).

It is also proposed to establish an additional amount of 2.00 quetzales per thousand, which would be calculated according to the risk of each bank.
The group requested information on revising the criteria that could be used to establish that risk, and even raised the need to establish an institute responsible for administering the related fund, which currently is responsible of the Guatemalan Central Bank.

The Guatemalan Bankers Association (ABG) has proposed giving legal certainty to the recipients into bank accounts, so that at time of owner’s death, the deposits could be delivered to the designated beneficiaries in the account, because actually, sometimes problems have been reported when people die intestate and leave as heir to a different person as the beneficiary in the account, after several years, ultimately, is a judge who will decide where the funds go, so the association requested to add an article on the proposed amendments, to regulate this matter.

One issue that did not reach consensus during the first meeting was the proposal to include the issue of consumer protection in the banking system and force the banks to improve information provided to customers.

The monetary authorities believe that this should be a power of the Office of Consumer Protection, whose law is pending in Congress for over three years now.

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