Organized Text of Law No 1488 of Banks and Financial Institutions Dated April 14th, 1993
This paper relates to legislation (2001) for regulating the activities of the financial institutions in Bolivia with the clear objective of promoting a solid, reliable and competitive financial system.
The paper begins by interpreting the application of this Law and defines the use of common terms. It classifies the entities that carry out the financial services under three types:
- Financial banking institutions;
- Ancillary financial services companies;
- Non-banking financial intermediaries.
With respect to the working of the institutions, the paper lays down the prudential norms and provisions which they are expected to adhere to under the present Law. The other sections of the paper relate to the following:
- Deposit of prescribed reserves by the financial intermediaries with the Central Bank and its implications otherwise;
- Banking oath of secrecy which prohibits unauthorized disclosure of sensitive information about the clients;
- Consequences of illegal financial activities;
- Control and inspections of financial intermediaries;
- Regularization, voluntary liquidation and intervention of financial intermediaries.
The paper concludes by outlining the objectives and powers of the Superintendence of Banks and Financial Institutions, which regulates the financial intermediaries of the country.
