Supervisory functions

The Supervisory Authority carries out its duties from the initial stage of market access for a new supervised entity, issuing the necessary authorizations as required by law. It then ensures that the activities of the authorized entity are conducted in compliance with the established rules, with the authority to intervene through various measures, including sanctions. Supervision also extends to managing corporate crises and overseeing the liquidation phase.

Supervisory activities are primarily divided into three key areas:

• regulatory supervision;

• informational supervision;

• inspection supervision.

Through regulatory supervision, the Central Bank issues secondary regulatory measures, which may also include explanatory or interpretative guidelines, to implement the general principles outlined in the laws of the Republic. The Central Bank is responsible for analyzing the impact of regulations and ensuring transparency in the regulatory process by engaging in consultation procedures with the relevant stakeholders and those affected by the provisions.

Informational supervision involves the collection and analysis of data deemed necessary by the Central Bank to monitor the current and future capital and economic stability of supervised entities, ensuring compliance with rules of fairness and transparency.

Inspection supervision is tasked with conducting on-site audits at the premises of supervised entities. This allows the Central Bank to directly assess their operational practices, verify adherence to supervisory regulations, and evaluate the accuracy of the information provided.

The Central Bank's internal organizational structure responsible for overseeing the banking, financial, and insurance sectors is led by the Supervision Coordination, a collegial body comprised of the General Manager, who chairs it, and inspectors appointed by the Executive Board.