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nid 93847
Jul 08, 2026
rghosh@vixio.com
Colombia
Financial Reguation Unit
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2122 charsColombia's Ministry of Finance Modifies Large Exposure Limits for Credit Institutions
Colombia's Ministry of Finance and Public Credit issued a decree modifying Decree 2555 of 2010 concerning exceptions to large exposure limits for credit institutions. The decree expands exemptions for certain short-term, transitory operations that credit institutions conduct with counterparties, recognizing their essential role in maintaining efficient financial market functioning.
The decree exempts four categories of operations from large exposure calculations: foreign exchange settlement operations in compensation accounts not exceeding three business days following negotiation; acquirer service operations for payment orders and fund transfers through low-value payment systems not exceeding one business day following settlement; tax collection operations generating transitory account balances not exceeding one business day following settlement; and intraday positions necessary for payment system continuity. These operations exhibit volatile behaviour driven by counterparty mandates and settlement cycles rather than discretionary risk concentration decisions by credit institutions.
The modification aligns Colombian regulation with international standards, including frameworks established by the Basel Committee on Banking Supervision, the European Union's Capital Requirements Regulation (EU No. 575/2013), and prudential standards adopted by Australia and the United Kingdom. The decree also permits Financiera de Desarrollo Nacional (FDN), Colombia's development finance institution, to approve large exposure limits up to 45 percent of its capital base for infrastructure project financing through public-private partnerships or public works contracts, subject to technical documentation and Financial Superintendency approval.
Credit institutions must establish policies, controls, and limits based on their capital base for managing large exposures and concentration risk related to exempted operations. The Financial Superintendency of Colombia will issue implementing instructions within six months of the decree's entry into force. The decree takes effect the day following its publication.
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3012 charsColombia's Ministry of Finance Modifies Large Exposure Limits for Credit Institutions
On June 25, 2026, Colombia's Ministry of Finance and Public Credit published a decree proposing amendments to Decree 2555 of 2010 . The amendments address exceptions to transactions counted toward compliance with the limits established in the regulations for the identification and management of large exposures and risk concentration at credit institutions.
Two new categories of transactions are added to Article 2.1.2.1.4 of Decree 2555 of 2010 as exemptions from the large exposure limit calculation: foreign exchange transactions that must be channeled through designated channels and are reflected in overseas bank accounts registered with the Central Bank as clearing accounts, provided that such transactions are settled within three business days following their execution. transactions arising from the provision of acquiring services intended to fulfill payment orders and fund transfers for payment to merchants or aggregators carried out through low-value payment systems, and transactions generated in connection with the payment of taxes, provided that such transactions do not exceed one business day following their settlement.
foreign exchange transactions that must be channeled through designated channels and are reflected in overseas bank accounts registered with the Central Bank as clearing accounts, provided that such transactions are settled within three business days following their execution.
transactions arising from the provision of acquiring services intended to fulfill payment orders and fund transfers for payment to merchants or aggregators carried out through low-value payment systems, and transactions generated in connection with the payment of taxes, provided that such transactions do not exceed one business day following their settlement.
For the exempted transactions, credit institutions must establish policies, controls, and limits, in relation to their capital base, for managing the risk of large exposures and risk concentration, in accordance with the instructions issued for this purpose by the Financial Superintendency of Colombia.
The National Development Finance Corporation (FDN) may approve a limit different from that set forth in the articles, exceeding 45 percent of the equity base referred to in paragraph 4 of Article 2.1.2.1.2 of the decree, provided that it pertains to the financing of infrastructure projects-including contracts entered into for the provision of services associated with such projects-that are executed through public-private partnership (PPP) schemes or through public works contracts, as well as for the specialized financing of high-quality projects. The FDN must prepare a technical document for each such project and submit it to the Financial Superintendency of Colombia following Board approval.
The Financial Superintendency of Colombia is required to issue implementing instructions within six months of the decree's entry into force. The decree takes effect the day following its publication (June 26, 2026).