Streng.Superintendence Banks & Insurance

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The technical cooperation seeks to improve access to financial services for low-income earners by strengthening the supervision of the Superintendency of Banks and Insurance (SBS) over micro-financial institutions (MFIs). The TC funds three components: (a) a program of visits to MFIs for inspection and audits with external support; (b) a program of training in the theory and practice of microfinance; and (c) an evaluation program. The first component provides for SBS visits, without advance notice, to all MFIs in the country, including municipal and rural credit unions and small and micro-enterprise development agencies (SMEDAs), for inspection by duly authorized auditors, once in 1999 and once in 2000. The second component has four subcomponents: (a) specialized training/internships in the areas of rural insurance, financial indicators for microfinance, and exchange programs with other superintendencies; (b) basic and advanced courses for microfinance inspectors; (c) courses abroad for training not offered in Peru; and (d) consultancies. The third component funds two sets of evaluations. The first set consists of a midterm and a final program performance evaluation, conducted by SBS staff. The second set of two evaluations: (a) analyzes the feasibility of implementing reforms in the legal and regulatory framework of the Law on Banks that would further strengthen the SBS's ability to supervise microfinance entities; and (b) analyzes the viability of establishing a specialized unit within the SBS for inspection of microfinance entities.