Financial Regulator Strenghening and Financial Inclusion Program

Project completed

The project aims at supporting financial stability in Peru by strengthening the country's financial regulatory and supervisory framework, promoting efficient consumer protection practices and supporting the implementation of a national anti-money laundering - combating the financing of terrorism strategy. It further aspires to encourage financial inclusion by creating a favorable legal framework conducive to the development of new financial products and increasing financial literacy of existing and potential customers. The direct beneficiaries of this program are Superintendencia de Bancos y Seguros (SBS) and regulated stakeholders, including financial intermediaries, private pension managers and insurance companies. The indirect beneficiaries are the public in general an final services consumers in particular.

Country/region Topic Period Budget
Peru
Economic and financial policy
01.01.2013 - 31.12.2016
CHF 3'777'180
Background Financial stability is crucial to economic growth as it contributes to consumer market confidence, a fundamental requisite to encourage local and international investment which in turn is key to economic growth, development and innovation. Only efficient, orderly, predictable, transparent and fair financial markets are capable of attracting sustained and long term investment. However, much remains to be done in Peru in this regard, particularly given the complex and changing financial environment, which requires continuous staff train to ensure that their knowledge remains relevant to emerging supervision requirements and in line with new tools and good international practices.
Objectives This contribution aims to support financial stability in Peru by strengthening the country’s financial regulatory and supervisory framework, promoting efficient consumer protection practices and supporting the implementation of a national AML/CFT strategy. It further aspires to encourage financial inclusion by creating a favorable legal framework conducive to the development of new financial products and increasing financial literacy of existing and potential customers.
Medium-term outcomes Establish and training center within the SBS.Improve the regulatory and supervisory framework.Implement an Anti Money Laundering and Combatting the Financing of Terrorism Strategy (AML/CFT).Promote financial inclusion, consumer protection and financial literacy.Promote regional cooperation on social and environmental risk management.
Results

Expected results:   Estimation of current and potential supply and demand for financial services.Development of metrics on the capital required for technical risks, including the application of industry standards to present financial information based on IFRS (International Finance Reporting Standards).Surveys on user knowledge and satisfaction on pension and insurance products.Development of proposals to broader insurance product offering, including the development of life annuity insurance markets, and the strengthening of distribution channels to improve the multi-fund structure. Strengthened processes, procedures and analytical tools of the Intelligence Finance Unit, including the development of IT systems to assist financial and economic analysis.Diagnostic on statistical inputs required for evaluating the effectiveness of the AML/CFT strategy.Studies to better understand the relation between AML/CFT with informality and corruption.Strengthened consumer protection policies.Reinforced quality of service, transparency and clarity of information provided by regulated institutions.Increased consumer awareness about their rights and obligations.


Directorate/federal office responsible SECO
Credit area Development cooperation
Project partners Contract partner
  • Financial Regulator


Budget Current phase Swiss budget CHF   3'777'180 Swiss disbursement to date CHF   0 Budget inclusive project partner CHF   19'860'000
Project phases

Phase 1 01.01.2013 - 31.12.2016   (Completed)