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Peru's savings and credit co-ops lack supervision; SBS seeks regulatory changes

Peruvian banking regulator SBS has raised concerns over a lackof supervision for the financial system's savings and credit cooperatives, Gestión reported March 29.

Peru has 322 savings and credit co-ops, known as CACs, but only27% of them are affiliated with Fenacrep, the national federation charged with managingthe sector. Presently, only 164 CACs submit financial information to Fenacrep, CarlosButrón, SBS' executive coordinator of banking and microfinances, reportedly said.

The lack of supervision, according to SBS officials, leaves theorganizations vulnerable to be used for money-laundering; there also are not anysafeguards in place for depositor funds, which presents another area of risk, theysaid.

Peru's congress has been asked to approve a proposed law thatwould designate the SBS as the regulator of CACs. The new measures would also requireCACs to have deposit insurance like the banking system, the publication noted.