General

 

The Centrale Bank van Suriname (CBvS) strives to maintain the stability of the financial system, as stated in Article 9 of the Central Bank Act 2022. It aims to achieve this goal by carrying out the supervisory tasks stated in Article 10 of the aforementioned law. According to this article, the CBvS has, among other tasks, the duty of supervising the banking and credit system, the pension and insurance system, currency exchange providers, money transfer remittances from and to foreign countries, and the capital market, with the applicable legislation and regulations taken into account. Supervision focuses on the soundness and integrity of the institutions in these sectors, for which the Supervision Directorate is responsible.

 

This Directorate consists of:

  • a Secretariat;
  • a Staff Unit;
  • the Credit Union Supervision Department;
  • the Pension Funds Supervision Department;
  • the Banking, Money Transaction Offices and Capital Markets Supervision Department;
  • the Insurance Supervision Department;
  • the Financial Integrity Department and
  • the Financial Stability Department.

 

The Banking and Credit System Supervision Act 2023 (BCSS 2023) forms the basis for the technical implementation of the supervision of credit institutions. According to the BCSS 2023, a credit institution is a legal person whose business mainly consists of obtaining immediate or repayable funds, whether or not in the form of savings or against the issue of one or more types of debt securities and the extension of loans or investments on its account. Based on this definition, credit unions are classified as credit institutions and supervision of credit unions has been delegated to the Credit Union Supervision Department.

 

Considering the definition, a credit union is more than a financial institution. A credit union is a democratically managed organization on a cooperative basis and does not have a profit as the main goal. Members pay an entrance fee to become a member. This enables the members to take ownership of the credit unions and grants them the right to elect a Board that sets the policy. An executive director may also be appointed.

Subsequently, the names of the supervised Credit Unions are published annually in the first half of January in the National Gazette Of The Republic Of Suriname.

 

Establishment of a credit union

The establishment of a credit union must be done through a legal process.

According to the BCSS 2023, a license from the CBvS is required to carry out the activities of a credit union, with the legal form of a cooperative association. With regard to Article 3 of the BCSS 2023, this license must be requested from the CBvS by registered letter.

 

In addition, the documentation listed in Article 3 of the BCSS 2023 must be submitted for approval of the CBvS. Besides, the documents mentioned in Article 3, the CBvS may also require further information to be provided. Articles 2, 4 to 11 must also be considered for the establishment of a credit union. Furthermore, The Cooperative Associations Act 2017, the Annual Accounts Act 2017 and the Act on Preventing and Combating Money Laundering and Terrorism Financing 2022 must also be taken into account.

 

The license application process

Before a credit union is established, documents will have to be prepared. This may take some time. In addition, a Board must be formed consisting of at least five members. A Supervisory Committee (supervisory body) will also have to be formed. Only members of the credit union can staff these bodies. The names and functions of these persons must also be provided to the Bank. In accordance with Article 19 paragraph 2 of the BCSS 2023, permission from the CBvS is required for the staffing of the aforementioned bodies. Furthermore, persons and/or officials can also be hired within the credit union who, in the Bank's opinion, can influence the risk profile of a credit union. These persons and/or officials will also be assessed by the Bank in accordance with Article 19 paragraph 3 of the BCSS 2023. Before permission is granted, the members of the Board and the Supervisory Committee, if present the director and de aforementioned persons and/or officials will undergo a fit and proper test, in which the availability and time, the importance of the institution and independence, professional competence, financial soundness, personal characteristics and the integrity are tested by completing an application. Also, assessment and introductory interviews are held.

 

Furthermore, a preliminary investigation must be carried out, demonstrating that the credit union will be viable. The results of this investigation must be included in a business plan, among other things. This plan should also include the following:

  • The goal and vision, including the need for establishment, activities and target groups.
  • The staffing.
  • The segregation of duties (front office, back office, internal audit and compliance officer).
  • An organization chart.
  • The procedure regarding the manner and frequency of reporting to the board/director.
  • A minimum number of members of 250 to establish a viable credit union.
  • Financial projections for the first three years of operation, consisting of a balance sheet, income statement and cash flow statement. This must also include a forecast of the expected solvency and liquidity position following the applicable standards of the CBvS.
  • Risk management process (including automation and security).
  • The competitive position of the credit union.
  • Name of the external auditor.

 

After all documentation is submitted under Article 3 of the BCSS 2023, the CBvS will proceed with the assessment. Furthermore, costs will be charged with regard to the license application.

 

When the documents have been approved and the members of the Board and the Supervisory Committee have received permission from the CBvS, the license is issued by means of an order. The Bank shall make its decision within three months from the date of receipt of a complete application.

 

Hereafter, the credit union will have to comply with the monthly/quarterly and annual reporting obligations. Credit unions are also institutions of public interest, which means that annual accounts must be prepared in accordance with the Annual Accounts Act 2017.

 

Supervision on credit unions

The supervision of credit unions consists of:

  • prudential supervision that focuses on the financial structure. The aim is to create a healthy credit union sector to protect the entrusted funds and to enhance the trust of the members in the institutions;
  • integrity supervision that focuses on:
    • corporate governance (good governance), which relates to honest and expert directors, who formulate and implement a responsible policy for the institutions based on provided guidelines;
    • combating Money Laundering and Terrorism Financing (ML/TF). The aim is to provide credit unions with a minimum framework to adequately and proactively combat ML/TF by identifying, assessing, investigating and taking actions to mitigate these risks.

 

Furthermore, supervision is conducted through off-site monitoring and on-site inspections:

  • Off-site monitoring

After a credit union is granted a license, the institution must report on a regular basis, in a form prescribed by the CBvS (off-site monitoring). The off-site monitoring consists of analyzing these reports, which is carried out periodically (monthly, quarterly, semi-annually, annually) based on the prescribed reporting statements, instructions and guidelines. The results of these analyses act as a warning signal for possible problems, whereas, it may be necessary to write a letter or arrange a meeting. In addition, periodic meetings are held with the aim of keeping the supervisor abreast of developments within the institutions.

 

  • On-site inspection

During the on-site inspections, the business operation and management of the institution are assessed on the spot based on its books and records. The basis of this is the off-site monitoring.

 

Recovery and resolution of credit institutions

With the implementation of the Central Bank Act 2022, the CBvS is required to establish rules with regard to taking and implementing preventive, early intervention and resolution measures with regard to credit institutions, in order to maintain financial stability in Suriname. As a result, the Credit Institutions Recovery and Resolution Act 2024 was promulgated. Therefore, in addition to being a monetary and supervisory authority, the Bank is also a resolution authority.

The CBvS, knowledgeable and experienced with regard to the supervision (supervisory function) of credit institutions, is already familiar with the information regarding credit institutions, which provides the necessary efficiency in the performance of its tasks, therefore the resolution function will take, the information, expertise and capacity available at supervision into account. This allows the supervisory task to involve the resolution function at an early stage if it identifies certain developments and problems. This is conducive to prompt an effective intervention, if it can be derived from the reported figures and trends that risks appear to be taking on undesirable proportions and a credit institution is or is likely to find itself in a situation of discontinuity. This can only improve the stability within the financial sector. In addition, a credit institution in resolution remains under the supervision of the Bank, unless the resolution process ultimately leads to the withdrawal of the license and the liquidation of the institution, which underlines the importance of close cooperation between the supervisory function and the resolution function.

 

Liquidation by the savings institution itself

A credit union can decide to liquidate itself. Therefore, any credit union will be obliged to notify the Bank in writing within two business days in accordance with Article 33 of the BCSS 2023. A period to be determined by the Bank will be observed before a decision to liquidate can be implemented. Such decisions must be made under the supervision of the Bank and according to its instructions.

Exchange RatesMarch 09th and until further notice

Currency Buying Selling
USD 14,018 14,290
EUR 16,628 16,959
GBP 19,396 19,782
ANG 7,699 7,852
AWG 7,784 7,939
BRL 2,438 2,485
TTD 2,063 2,103
BBD 6,907 7,044
XCD 5,190 5,293
PER 100 GYD 6,657 6,790

Gold CertificatesMarch 09th and until further notice

Coupon SRD
5 gram 7.814,97
10 gram 15.629,94
50 gram 78.149,69
100 gram 156.299,39
500 gram 781.496,94
1000 gram 1562993,88
Gold LME: USD 1.701,00 /tr.oz.

Inflation

    Average End-of-period
2022   52.4 54.6
       
2023   Month-to-month Year-to-year
Jan   3.7 55.6
Feb   3.2 57.9
Mar   3.2 59.6
Apr   5.7 65.4
May   2.4 65.0
Jun   2.3 54.6
Jul   3.0 56.6
Aug   2.0 53.5
Sep   1.5 50.8
Oct   1.0 42.9
Nov   0.6 38.7
Dec   0.1 32.6
       
2024   Month-to-month Year-to-year
Jan   0.9 29.0
Feb   0.4 25.4
Mar   4.4 26.8
Apr   0.7 20.9
May*   0.5 18.6

*) Preliminary figures

 

 

Weighted Average RatesJuly 19 - 15:00h (Transfers)

Currency Buying Selling
USD 29.359 29.455
EUR 31.491 32.045
GBP 37.935 38.679
ANG 16.131 16.447
AWG 16.311 16.630
BRL 5.302 5.406
TTD 4.330 4.415
BBD 14.473 14.756
XCD 10.874 11.087
GYD PER 100 13.951 14.224
CNY 4.039 4.118

Weighted Average RatesJuly 19 - 15:00h (Banknotes)

Currency Buying Selling
USD 28.345 28.770
EUR 29.870 30.217
GBP 36.625 37.350
ANG 15.574 15.883
AWG 15.747 16.059
BRL 5.119 5.220
TTD 4.180 4.263
BBD 13.973 14.250
XCD 10.498 10.706
GYD PER 100 13.469 13.735
CNY 3.899 3.976

Gold CertificatesJuly 19

Coupon SRD
5 gram 23.332,17
10 gram 46.664,35
50 gram 233.321,75
100 gram 466.643,49
500 gram 2.333.217,45
1000 gram 4.666.434,90
Gold LBMA USD 2.463,80 /tr.oz.

Weighted Average Accepted
OMO Rate

Auction ID Auction Date Rate (%)
CBTD240717-1W 2024-07-17 8,5
CBTD240710-1W 2024-07-10 10,1
CBTD240703-1W 2024-07-03 13,0
CBTD240626-1W 2024-06-26 14,1

Standing Lending Facility Interest Rate

Auction ID Auction Date Rate (%)
CBTD240717-1W 2024-07-17 10,2
CBTD240710-1W 2024-07-10 12,1
CBTD240703-1W 2024-07-03 15,6
CBTD240626-1W 2024-06-26 16,9
Balance sheet

Inflation

    Average End-of-period
2022   52.4 54.6
       
2023   Month-to-month Year-to-year
Jan   3.7 55.6
Feb   3.2 57.9
Mar   3.2 59.6
Apr   5.7 65.4
May   2.4 65.0
Jun   2.3 54.6
Jul   3.0 56.6
Aug   2.0 53.5
Sep   1.5 50.8
Oct   1.0 42.9
Nov   0.6 38.7
Dec   0.1 32.6
       
2024   Month-to-month Year-to-year
Jan   0.9 29.0
Feb   0.4 25.4
Mar   4.4 26.8
Apr   0.7 20.9
May*   0.5 18.6

*) Preliminary figures