[El Universal] Banking services will be classified as a "public service" and all the goods, no matter their nature, contributing to the development of this activity will be awarded the status of public utility, according to the draft Law on Banking Sector Institutions that will be discussed on Thursday in a plenary session at the National Assembly.
"The private-law legal entities and assets of any nature that allow for development of such activities or are used in those activities shall be considered a public utility service."
This legislation would replace the General Law on Banks which governs the financial activity in the country and also fits in the provisions of the Organic Law on the National Financial System which provides that the institutions have to comply with the Economic and Social Development Plan.
Under the recitals, among the reasons to remove a board of directors, to take over or seize a financial institution are: carrying out "activities that undermine the constitution or are detrimental to the economic and financial activities of the Republic or disrupt the provision of banking services."
The new regulation would also increase the accountability of the members of the board of directors of the banks.
The new bill is more exacting for the financial system. For instance, financial institutions will have to allocate 5 percent of their profits to community councils. |