2018/2019 Edition of the Global Regulatory Update

Global Regulatory Update  | Corporates Edition 63 Another objective of the bill is to avoid potential bank insolvency to protect depositors, payment systems and financial stability through early intervention mechanisms in times of crisis. Lastly, the bill seeks to reduce fiscal costs provoked by the bailout of a financial institution or the compensation of depositors affected by a run on the bank. Some issues are not addressed by the proposal, including the supervision of consolidated financial holdings that control some of the largest banks in the country, an issue the IMF has criticized for years. The bill was approved by the Lower House in January 2018, and sent to the Senate Finance Committee in March. The bill was included on the Committee’s agenda in May but was not debated and has since stalled given lack of agreement among legislators. For the bill to be advance it has to be included in the Committee’s agenda by its president, who is part of the opposition. Additionally, the Executive has to give it presidential priority or the governing coalition will have to reach necessary consensus. 4) Spotlight on Ecuador The economic law sent by President Moreno to the National Assembly was approved in June 2018 without material changes. This represents an important political milestone for the Moreno administration and shows the credibility the president has built after the economic plan was announced and the new Minister of Finance Richard Martinez was appointed.