TECHNOLOGICAL HIGHER EDUCATION INSTITUTE

PUBLIC ARGENTINA

SPECIALTY:

ACCOUNTING

DIDACTIC UNIT:

FINANCIAL ACCOUNTING

TEACHER:

NANCY

THEME:

NON-BANKING SYSTEM

MEMBERS:

LÓPEZ CERNA, LISBETH

RAMIREZ PRUDENCIO, LUIS

SILVA CRUZ VALERIA

DIAZ MOLINA, GIANELLA

CARHUAS ZAMORA, RITA

SOTAYA I WILL MAKE YOU HAPPEN, YULISA

CYCLE V–B
 We dedicate this work
to God who has given us the
life and strength
to finish this work
of research. To
professor, with your
effort every day us
teaches to improve and thus be
the pride of our
parents. And to our
institution, that give us the
teaching and strength for
achieve our goals
traced.
 NON-BANKING SYSTEM

DEDICATION

INTRODUCTION

CHAPTER I: FINANCIAL SYSTEM

CHAPTER II: NON-BANKING SYSTEM

CHAPTER III: MEMBERS OF THE NON-BANKING SYSTEM

SECTION I: FINANCIAL

SECTION II: COFIDE

SECTION III: INSURANCE COMPANIES

SECTION IV: SAVINGS AND LOAN COOPERATIVES

SECTION V: RURAL BOXES

SECTION VI: MUNICIPAL BOXES

SECTION VII: AFP

SECTION VII: EDPYME

CONCLUSIONS

BIBLIOGRAPHY
 INTRODUCTION

As a result of advances in information technology, a phenomenon occurred

In the last twenty years, financial systems have increased in
complexity. It is becoming increasingly complicated to understand the language of the

financial experts, as well as the instruments they have created.

Individuals and companies turn to the financial system with the aim of
obtain funding (deficit agents) or look for some investment alternative
(surplus agents). The financial system connects both. It takes funds.
from the surplus ones and transfers them to the deficit ones.

An intermediate financial institution resources and is generally identified

with a traditional commercial bank; however, there is an additional set
of intermediaries that do not receive deposits directly from families.
Some examples are the AFPs, insurance companies, among others.

In the present work, in addition to the general concepts, we will focus on

we will expand on the topic of indirect financial intermediation, specifically in
the Non-Banking System, outlining the scope and services they provide
these types of institutions.
CHAPTER I: FINANCIAL SYSTEM

Definition

The financial system is understood as the set of institutions in charge

of the circulation of monetary flow and whose main task is to channel the money
from surplus agents (fund suppliers) to deficit agents
(fund applicants who carry out productive activities). From this
In this way, the institutions that fulfill this role are called intermediaries.
financial, using financial instruments as a means to make possible
the transfer of savings funds to productive units.

These consist of financial assets that can be direct.

(bank credits) and indirect (values), according to the form of intermediation to
that are linked.

2. Legislation

In our country, the financial system is regulated by the General Law of

Financial System and the Insurance System and Organic of the
Superintendency of Banking and Insurance (SBS), Law No. 26702.

This law constitutes the framework of regulation and supervision to which the
companies that operate in the financial system and insurance, as well as those
that carry out activities linked or complementary to the corporate purpose of
such people. Thus, our system is composed of financial institutions,
companies and institutions of public or private law, duly
authorized by the Superintendency of Banking, Insurance, and AFP that operate in
financial intermediation, interpreted as the usual activity
developed by authorized companies and institutions to raise funds from
public and place them in the form of credits and investments.

3. Importance
A financial system offers us services that are of primordial importance in
a modern economy. The use of a stable medium of exchange
accepted reduces transaction costs, facilitates trade and therefore
both specialization in production. Financial assets with
attractive yield, liquidity, and appealing risk characteristics stimulate the
savings in financial form.

When evaluating investment options and overseeing the activities of the

borrowers, financial intermediaries increase the efficiency of the use of the
resources. Access to a variety of financial instruments allows for
economic agents pool the risk of prices and trade.

4. Intermediation Classes

From the point of view of intermediation, the financial market is divided

in two large markets; where both are subdivided into two markets.
To understand the different forms of intermediation, get an idea of a
a very common case in companies, which need to finance
their projects; and for this they have two ways to do it: one through credit
commercial or banking (indirect intermediation), and the other through the market
of values (direct intermediation).

The following will explain what each of them consists of.

4.1 Direct Intermediation Market

Given a scenario in which people need money to finance

their projects (deficient agents) and it is not convenient for them to take them on
from the banking sector, perhaps due to high interest rates, then
they can resort to issuing securities (stocks or bonds) and thereby raise
resources they need, directly from the providers.

4.2 Indirect intermediation market

It is that place where an intermediary participates, usually the sector

banking (associated commercial banking and private), that grants
preferably short-term loans (main asset of the same)
previous fundraising from the public to then allocate them to a
 second, in the form of loans. This is how the capital provider and the
the plaintiff of the referred resource is indirectly linked through a
intermediary.

4.2.1. Banking sector

Composed of state banks (such as the Bank of the Nation) and the
multiple banking, which includes banks: Banco de Crédito,
Continental Bank, Scotiabank, among others.

4.2.2. Non-banking sector

Composed of financial companies, municipal savings banks, rural savings banks

savings and credit, development companies for small and medium-sized enterprises

company (EDPYME), financial leasing companies, among others.

Both markets are supervised y controlled by the

Superintendency of Banking, Insurance and AFP (SBS).

CHAPTER II: THE NON-BANKING SYSTEM

Definition

Non-Banking Financial Institutions are participating institutions of

financial system and do not belong to the banking system. These
institutions are dedicated to strengthening development and integration
financial of the country.

They are aimed at the collection of small savings and capitals and to
financing of micro, small and medium enterprises in the sectors
rural and urban.

2. Difference between the Banking and Non-Banking System

The main advantage of banks over non-banking companies is that

they offer a wide variety of financial services under one roof.
On the other hand, non-banking financial companies focus on one or a few
related services, often offering more competitive rates than the
banks. Furthermore, they are more willing to enter into offers or to work with the
clients that banks consider too risky.

3. Services offered

The IFNBs function as financial intermediaries, which can capture

public deposits and grant credits to the aforementioned sectors.
The services they offer are:

3.1 Financing of all kinds

Mechanism by which a company obtains resources for a
specific project that can be to acquire goods and services, pay
suppliers, etc. Through financing, companies can
maintain a stable economy, plan for the future, and expand.

3.2 Technical assistance to its members

Any independent service, provided, for which the provider
commits to using your skills through the application of certain
procedures, arts or techniques, with the aim of providing
specialized knowledge that is necessary in the process
productive, marketing, provision of services or any
another activity carried out by the user.

3.3 Training and consulting for its partners

Activity carried out in an organization, responding a sus
needs, which seeks to improve attitude, knowledge, skills or
behaviors.

3.4 Savings and contributions

Through this mechanism, the partners and clients strengthen their
wealth in the short and long term, while allowing for
Non-Banking Institution generates a whole variety of products and
financing services.
3.5 Insurance
Its objective is to conclude contracts by which they are obliged to, within
for certain limits and in exchange for a premium, to indemnify a specific
damage or to satisfy a capital, a rent, or other agreed benefits,
in the case of a certain future and uncertain event occurring.
CHAPTER III: MEMBERS OF THE NON-BANKING SYSTEM

This set of institutions engages in indirect intermediation which

they capture and channel resources, but do not qualify as banks, among these
we have:

SECTION I: FINANCIAL

Financial institutions are entities that act as intermediaries.

financial specialists in investment banking operations, are
constituted as joint-stock companies and promote the creation of businesses
productive. Through the capture and channeling of internal resources and
medium and long-term outsiders; they invest in these companies, either in
directly acquiring shares or participations; indirectly,
granting them credits for their organization, expansion, and development,
modification, transformation or fusion as long as they promote development and
diversification of production.

1. Characteristics of financial institutions

The main mission of financial institutions is to store and safeguard money.

deposited by the clients through their different products, accounts
currents, savings accounts, term deposits, and the different alternatives of
investment. For this, financial institutions are structured around offices and
branches, the phone, the internet portal, the self-service terminals, the
points of sale in stores, payment methods, and representatives do not
banking, to bring closer and facilitate the services of financial institutions with the

clients. In parallel, the financial institutions lend the money collected by

intermediate of their products, credit cards, flexible use loans,
of car, housing, and other financing alternatives. The same structure
of financial offices is used to offer these services and in
In some cases, specialized branches are used.

2. Classification of financial institutions:

Financial institutions can be classified according to the source of capital, into public,

private and mixed. Regarding their social purpose, financial institutions can be:
commercial, business, or industrial. According to the specialization in
services, financial ones can be savings and credit, business
international, electronic and virtual banking, consumer finance or
business, first or second floor financials, local coverage or
national, housing or car financing, and investment financials.

3. Difference between public finance and private finance

Although the main difference between public and private financial institutions is the
origin of the capital, the composition of the partners, and the election of the president
services and target market, since in the case of controlled entities
by the government, the orientation of services is to support policies
economic sectors that require more support, such as can be
agriculture or livestock or construction or key industrial sectors
and traditional ones of each country

3.2 Financial Companies

America Procompany
Crediscotia Mitsui
Trust One
New Vision Qapac S.A.
TFC Let's share finance
Effective
4. FINANCIAL MODEL: CREDISCOTIA

CrediScotia formally begins its operations in Peru in February 2009

combining the extensive knowledge of the Banco del Trabajo in the market of
microfinance and consumer banking, acquired in its 15 years of
experience in the country, backed by The Bank of Nova Scotia
(Scotiabank), an international financial group with more than 180 years of
experience, considered among the ten most solid and prestigious banks of
world.

Together they have started a new way of understanding business. CrediScotia

born to offer simple products and experiences to Peruvians, those
micro-entrepreneurs and employees who have things to do and projects that
carry out.

4.1 Products:

4.1.1 For individuals:

Personal loans
Free Availability Credit
Liquid Guarantee Credit
Self-construction credit
Credit Purchases
Motorcycles credit

Savings
Personal Savings Account
Time Deposit
Express Basic Account
CTS Account
Ahorro Plus
Insurance
Accidental Protection Insurance
Involuntary Unemployment Insurance or Temporary Disability
Debt Cancellation Insurance

Credit Card Protection Insurance

 Cancer Diagnosis Indemnity Insurance
Accidental Death Insurance
Burial Life Insurance

Collections
Remittances
Transfers

4.3 Cards

Unique Visa credit card Credit Installments Card

Mastercard credit card Gamarra Card

Control Card Mastercard Debit Card

4.1.2 For Business

Credits
Working Capital Credit
Working Capital Line
Financing for Assets and Investments
Credit for Infrastructure Projects
Liquid Guarantee Credit
Seed Credit

Savings
Business Savings Account
Time Deposit

Insurance
Insurance
Safe Business Safe
Multi-Insurance Health Insurance

Vehicle Insurance
All Risks Fire Insurance (Mortgage)
Deferment Insurance
SECTION II: COFIDE (Financial Development Corporation)

1. DEFINITION

It is a mixed-economy company that has administrative autonomy,

economic and financial. Its capital is 98.7% owned by the Peruvian State.
represented by the National Financing Fund for Activities
State Business (FONAFE), a dependency of the Ministry of Economy and
Finance, and 1.3% to the Andean Development Corporation (CAF). COFIDE
is part of the National Financial System and can carry out all those
financial intermediation operations permitted by its legislation and its
statutes and, in general, all kinds of related operations. Since its creation
Until 1992, COFIDE acted as a first-tier bank. Without
embargo, from that moment on, began to perform exclusively the
functions of a second-tier development bank, channeling resources
that is managed only through the institutions supervised by the
Superintendency of Banking, Insurance and AFP (SBS). The operational modality of
the second floor allows COFIDE to complement the work of the financial sector
private, in activities such as medium and long-term financing and of
exporting sector and the micro and small business through channeling
of resources.

2. FUNCTIONS OF COFIDE

Grant financing to natural and legal persons who

they dedicate themselves to productive and service activities, through companies
and entities of the financial system and promotion entities that support
effectively to rural economic activity and to small entrepreneurs in
general.
Perform loan operations, advances, and discounts on bills of exchange
change, promissory notes, vouchers and other documentary evidence of debts, to
favor of productive and service companies, through businesses and
entities of the financial system and of the promoting entities.
Promote and finance pre-investment studies, investment projects
productive, as well as infrastructure projects, including those that
 correspond to areas of lesser relative development, through the
companies and entities of the financial system and promotion entities.
Provide financial advisory services, without implying management of
money from their clients or investment portfolios on their behalf.
Grant guarantees, surety letters, and other guarantees in favor of the companies and
financial system entities and promotion entities.

In the context of law 28015 - law for the promotion and formalization of micro
small business

Design methodologies for the development of financial products and

technologies that facilitate mediation in favor of micro and small enterprises.

Predetermine the financial viability from the design of the products

Standardized Financials.
Implement a risk rating system for products
financial ones that I designed in coordination with the Superintendency of Banking and

Insurance (SBS).
Manage the acquisition of resources and channel them to the companies of
multiple operations, so that they proceed to allocate these resources
to the MSE.
Collaborate with the SBS in designing management control mechanisms
the intermediaries.
Coordinate and monitor activities related to the
services provided by private entities facilitating business or
supervised by the SBS or the CONASEV.

3. SERVICES OFFERED

3.1 SUPPORT FOR MSMEs

3.1.1 Programs and Financing Lines
a) Gonna
Objective: To promote the development of the Peruvian small business that
develop in the different economic activities, through the
financing for the establishment, expansion, and improvement of
 its plants and equipment as well as their design costs and services of
related support, and also as working capital.

b) Multisectorial Soles
Objective: Promote the development of the business sector for the
establishment, expansion, and improvement of its activities.

c) Subordinated Credit
Objective: Support the expansion of financing in favor of the
myths through the granting of loans for strengthening
patrimonial of the Specialized Institutions in micro and
small business.

d) Comex Export
Objective: to offer to individuals and legal entities in Peru
exporters, pre and post-shipment financing. The resources
will be used for the export of goods and services of origin
Peruvian.

e) Comex Importation
Objective: to offer to natural and legal persons of Peru
importers, financing for the import of goods.

3.2 SUPPORT FOR PRODUCTIVE INVESTMENT, INFRASTRUCTURE

AND OF THE ENVIRONMENT

Help in the implementation of road infrastructure (roads and

railways), connectivity (airports and ports), energy
(power generation plants, transmission lines, change of
energy matrix) and basic services (potable water and sanitation),
among others.

3.2.1 INFRASTRUCTURE FINANCING

3.2.2 TRUST SERVICES
3.2.3 ENVIRONMENTAL FUNDING
 COFIGAS
After the arrival of Camisea gas in Lima, COFIDE designed the Program
Funding for Conversion to Compressed Natural Gas (CNG)
called COFIGAS, with the aim of contributing to the change in the matrix
national energy through the mass conversion of
vehicles by different users.
While COFIGAS is remembered for the conversion of vehicles, it also
understands the financing of the construction of a network of
infrastructure that includes gas centers, distribution centers
regional, as well as the financing of machinery conversion,
teams and engines.
This program has directly benefited 214,341 vehicles.
with a financial facility of around US$ 356 million. This has
generated savings of more than US$ 4,700 million in a period of eleven
years and a reduction of more than 2.5 million metric tons of
carbon dioxide equivalent (t CO2 e).
b) BIONBUSINESS
It is aimed at both entrepreneurs and those companies
small and medium-sized enterprises (SMEs) that have related projects
Energy Efficiency (EE) and Renewable Energy (RE).
Additionally, this program promotes the consumption of various sources
of renewable energies in energy and production processes,
directly contributing to the mitigation of gas emissions from
greenhouse effect.

3.2.4 OTHER FINANCIAL SERVICES

a) Financial Structuring
They prepare funding proposals according to the needs of
clients, optimizing loan conditions, terms, and rates.
Financial Advisory
They provide financial advice, both for strengthening your situation.
financial, as well as for the diversification of funding sources,
via capital markets.
3.3 SUPPORT FOR THE FINANCIAL INCLUSION PROCESS
Promotes financial inclusion by impacting populations
vulnerable individuals, to then begin a financial literacy process,
generating an entrepreneurial culture that provides well-being to society.

3.3.1 PRIDER
The Inclusive Program for Rural Business Development aims to achieve
access to financial services for low-income population with the
to contribute to the reduction of poverty, promote equality
social and stimulate economic development.
It is aimed at families located in rural areas where the
weaknesses and threats can become opportunities and
strengths, with continuous training and consulting. As
the outcome is the integral development of the participating families to
through a positive attitude towards change.

3.3.2 Entrepreneur Fair

The Fair's main objective is to promote the emergence,
development and strengthening of the country's business sector, offering
integrated services linked to consulting, training, showing
best business practices and a portfolio of goods suppliers
services for the business sector.

SECTION III: INSURANCE COMPANIES

1. DEFINITION

Insurance companies are businesses that cover various risks: thefts,

losses, bankruptcies, disasters. All types of businesses, companies are insured.
automobiles, houses, etc. through clearly established contracts between the
the insured and the company (these contracts are also called policies). These
companies commit to compensate the insured affected by
change of a premium payment.

Insurance activity is a fundamental component of the markets

financial, along with the credit or banking market and the markets of
values or financial instruments

2. CHARACTERISTICS

Insurance entities, in order to face the risks arising from their

activity must have sufficient financial resources and in
consequently, the legislation imposes certain restrictions on them

Given the convenience of having permanence and stability in this sector,

Legal regulations often prohibit this activity from being carried out.
by natural persons.

To ensure the solvency of insurance companies, the legislation

rejects that these companies can engage in any activity other than
the insurance company

The mentioned reserves or technical provisions are invested by the companies of

insurances normally in real assets (real estate) or in other assets
financial (securities or securities, active operations).

3. INSURANCE COMPANIES IN PERU:

RIMAC INSURANCE
A POSITIVA - General and Life Insurance Company
MAPFRE Peru - Insurance and Reinsurance Company
SURA Insurance
INTERSEGURO - Insurance Company S.A
ACE INSURANCE S.A
CARDIF of Peru Insurance and Reinsurance Company
INSUR S.A. Insurance Company
PROTECTA Insurance Company
4. FINANCIAL MODEL: RÍMAC INSURANCE

4.1 For people:

4.2 For companies:

4.2.1 Insurance for Assets:

Asset Risks: It offers you insurance to protect your

fire, earthquake, theft, civil liability insurance company
to third parties, among others.

Engineering Risks: Ppolicies to protect your projects from

construction and engineering.
Boat Insurance
Transport Insurance

4.2.2 Employee insurance:

EPS
Collective Medical Assistance
SCTR: Complementary Insurance for Risky Work is an insurance
created by the State through Law No. 26790, Law of
Modernization in Social Health Security, regulated by the
Supreme Decree No. 003-98-SA. Provides coverage for care
medical and/or economic benefits required by the worker from
consequences of work accidents o diseases
professionals. This insurance is mandatory for the
 companies engaged in high-risk economic activities and that
are specified in Annex No. 5 of DS 009-97-SA, modified
by DS No. 003-98-SA.

5. FINANCIAL MODEL: ACE INSURANCE S.A

5.1 For Individuals and Families:

Accidents: Accidental Death and Total and Permanent Disability due to

Accident
Protected Bag and Personal Accidents

Family Protection: Accidental Death, Hospital Rent due to Accident

Illness and Medical Expense Reimbursement for Accidents

5.2 For Companies:

Individual transport insurance: The goods and/or merchandise described

against physical losses or material damages that occur to it during its
transport
Construction insurance: It consists of civil works in
construction
Insurance for machine breakdown
Liability insurance: covers the sums of money that the
The INSURED is legally obligated to pay Third Parties for being
civilly responsible for Personal Injuries and/or Property Damage
 involuntarily caused to said Third Parties, as a direct result
of the activities or businesses of the INSURED
Insurance against theft
Insurance against dishonesty, disappearance, and destruction
Dishonesty of Workers (Act of Dishonesty has
committed by the Worker
Money and/or Assets Outside the Premises (Money and/or assets in possession)
by any Messenger, during direct transit to, or from, the
Banks and/or among the premises
Counterfeiting of Checks, Other Means of Payment and Currency

SECTION IV: CREDIT AND SAVINGS COOPERATIVES

1. DEFINITION:

They are associations that promise their members the best service at the lowest
price. There are many types of cooperatives, but only the savings and credit ones
belong to the financial system.

Provides solidarity-based financial services, established freely and

voluntary to meet common needs. Its institutional life is
unfolds within the doctrinal framework of cooperative principles and values
globally accepted, as well as observing and respecting the provisions
current regulations issued for financial activity. They are known as 'the
"bank of the people" for its service to the needy classes, and its relationship with the
community.

2. IMPORTANCE

Savings and credit cooperatives serve segments of the population

fewer resources, compared to those served by the other systems. One
an indicator of this is the average credit level of the SCAC, even when it
strongly influenced by the amount of credit granted.
The presence of the cooperative system in the non-banking financial system is
significant, although reduced in the financial system as a whole.

3. CREDIT AND SAVINGS COOPERATIVES IN PERU

ABACO
HIGH HAPPY FOREST
FROM THE EMPLOYEES OF NEXTEL PERU S.A. LTDA
FROM THE WORKERS OF CIA. GOODYEAR LTDA.
OF THE WORKERS OF THE DISTRICT MUNICIPALITY OF
Free Town
FROM THE WORKERS OF THE CREDIT BANK LTD.

SECTION V: RURAL SAVINGS AND CREDIT BOXES (CRAC)

1. DEFINITION:

They are institutions that are authorized to accept deposits from the public.
which are protected by the Deposit Insurance Fund (DIF), and for
grant credits primarily directed towards medium, small, and micro enterprises
company.

The main characteristic is 'intermediation', that is, they capture deposits.

to later finance medium and small projects or businesses with them
my small business.

They are non-banking financial institutions regulated by the SBS, which

were established since 1993 with limited minimum capital requirements and
private shareholders. Initially conceived as a response to the
liquidation of public development banking, the Savings Banks were oriented to provide
financial services to segments of the population not served by banking
commercial, prioritizing the rural sector.
It is important to highlight that the CRACs have been created with private capital.
entrepreneurs and farmers from their respective regions, and their operation is limited
currently to the departmental scope.

2. ADVANTAGES

The establishment of these financial entities presents advantages for the

regional financing, since its shareholders have a greater understanding
deep into those markets. Likewise, their decision-making is more agile,
because the shareholders, directors, and managers reside in the same region
in which the CRAC operate, unlike other entities that operate at a level
national and make their main decisions at their headquarters in Lima.

3. DISADVANTAGES

At the same time, it is worth highlighting that its limited scope of operation also presents

some disadvantages, due to the higher credit risk they face, because of the
concentration of its loans in the same region, without having the
possibility of diversifying their portfolios in other markets. This situation is exacerbated by the

fact that these entities still maintain a significant concentration

in agriculture, a sector that is exposed to serious market risks and
natural. Likewise, the regional operating area results in a greater
economic linkage between clients, therefore recessionary effects on the
local economies can be felt more intensely in a good part of
the borrowers, which would deteriorate their repayment capacity. Finally, the fact
that the main investors in the CRAC are medium-sized entrepreneurs
Regional investors may limit their ability to make contributions.
capital fresco, which could hinder the growth of these entities in
the future.

4. Rural Savings and Credit Banks in Peru (CRAC)

Cajamarca The Andes

Chavin The Liberators of
Credinka Ayacucho
Lord of Luren Prymera
Incursion Sipán
 From the Center

5. FINANCIAL MODEL: MR. SIPAN's CASH

Caja Sipán is a private law corporation with 564 shareholders.

from the region, aimed at promoting financial intermediation services, in
special form of the small and microenterprise sector.

It is subject to the General Law of the Financial System, General Law of

Companies and directives issued by the Superintendent of Banking and Insurance and
Central Reserve Bank of Peru.

5.1 Products offered:

5.1.1 Savings:
Traditional Savings
Savings Payment Order
Term Accounts
CTS accounts
5.1.2 Credits:
Credit by Agreement
Personal loans
Commercial credits: Promissory notes and Guarantee Letters

SME Credits
Agricultural Credits: Financing starting from 5 Hectares.
We finance: rice, corn, sugar cane, and agro-exportable crops.
Credit Live Better
My housing credit
Daily Credit:
CreditSavings:
5.1.3 Services:
Foreign currency buying/selling
Transfers and Remittances
Collection of Public Services
SECTION VI: MUNICIPAL BOXES

1. DEFINITION:

The Municipal Savings and Credit Banks (CMAC) are institutions

financial institutions whose institutional mission is to provide financing,
mainly, to the micro and small enterprise (MYPE); and to attract deposits from
audience in all economic sectors and regions of the country, always with a
decentralized and inclusive orientation. They are regulated financial institutions
by the Superintendency of Banking, Insurance and AFP (SBS), and by the Bank
Central Reserve (BCRP), additionally, are within the scope
of the Comptroller General of the Republic (CGR). Likewise, they are members of
Deposit Insurance Fund (FSD) and mostly the sole shareholder is the
Council of the Provincial Municipality of origin. Since its creation, and to
Over the 30 years of operations, the CMAC have contributed significantly
direct and indisputable with financial and economic inclusion in Peru.

2. Contribution of the CMAC to the financial inclusion of the country

The Municipal Savings Banks were created in provinces as the financial alternative for
address the needs of lower-income sectors, through the
credits for entrepreneurs of MSE (micro and small enterprises)
when the traditional financial system did not consider them creditworthy,
contributing to make their ventures a reality and, with that, energize the
economy and reduce local poverty.

The total number of deposit accounts in the CMAC has quadrupled.

By November 2011, these reach 1 million 836 thousand accounts; while
in 2002 they totaled 421 thousand.

In the CMAC, 63% of the growth of their deposits between 2010 and 2006
it has occurred outside of Lima; quite the opposite to banking whose growth of
deposits were concentrated in Lima, representing 82% of all of them
captured.
46% of the CMAC credits are focused in the highland region of Peru,
compared to the 7% of the traditional financial system.

Just over 66% of the total debtors of the CMAC are MYPE;
that for the traditional financial system, these represent only 12%.

As a testimony to the commitment of the Municipal Savings Banks to the reduction

from poverty in Peru, it can be seen that in those areas where the
the total poverty rate is over 50%, such as the departments of
Huancavelica (66.1%), Apurímac (63.1%), Huánuco (58.5%), Puno (56%) and
Ayacucho (55.9%); the CMACs have placed 12% of their total credits,
against the traditional financial system that has only placed 1.23% of
total of your credits.

3. CHARACTERISTICS:

The profits of the CMAC are reinvested in the same Box to attend
better to their clients or are distributed to the Municipality for implementation
of his social works
The CMAC are leading microfinance institutions in inclusion
financial institutions, created in provinces in the 1980s with the aim of
decentralize credit and be the financial alternative that allows addressing
the needs of the lower-income sectors, offering them
opportunities and financial resources to make your small dreams come true
entrepreneurships.
 The Municipal Savings Banks were born in the provinces as a financial alternative.
to meet the needs of the lower-income sectors, through
from the credits to the entrepreneurs of the SMEs
The CMAC have developed microcredit in the country, inducing thousands.
from microentrepreneurs to formality and promoting the culture of savings and
the benefit of your credits
The mission of the CMAC is to provide financing, mainly, to the
micro and small enterprise (MYPE); and attract deposits from the public in all
the economic sectors.

4. Municipal Savings and Credit Banks (CMAC)

Arequipa Maynas
Cusco Paita
From Santa Piura
Trujillo Sullana
Huancayo Tacna
Ica Pisco (liquidated)

5. FINANCIAL MODEL: PIURA CASH

The Municipal Savings and Credit Bank of Piura (‘CMAC Piura’ and/or ‘the Bank’) is
a financial entity dedicated to multiple operations, created to promote
the development of small and medium-sized enterprises, having as
main areas of influence, the north of the country (coast and jungle).

Currently, the Box has 111 agencies distributed nationwide, one

important network of electronic customer service channels, in addition to a
wide variety of: information offices, correspondent tellers, and ATMs
automated, which has allowed to maintain in December 2015 the second
place in terms of placements and collections, within the system of
Municipal Savings Banks (13.95% of gross placements and 16.45% of deposits).

The Box has the Provincial Municipality as the majority shareholder.

Piura, which has 97.66% of its share capital and highlights the recent
incorporation of FOCMAC as owner of 2.34% of the shareholding, to
through the subscription of preferred shares in December 2015.

5.1 Products:
5.1.1 Savings
Savings Account
Payment order accounts
Fixed-term account
CTS account

5.1.2 Credits
Business Credits
SME Agricultural
Fishing boat Panderito
Microcredit Campaign
Capigas At the touch

b) Consumer Credits
Pledge Payroll discount
Credipersona Fixed-term guarantee
For sale of goods
awarded

SECTION VII: PENSION FUND ADMINISTRATORS (AFP)

1. DEFINITION
They are companies that gather resources from workers through deductions.
from a percentage or salaries, which will constitute a contingency fund
They receive basically individual contributions from the workers in order
that they can enjoy the benefit of retirement upon reaching the legal time.
These companies invest and manage the funds, on behalf and at the risk of the
workers, in various investment instruments, both fixed income as well
variable, forming an investment portfolio.

The Private Pension System (SPP) was created on December 6, 1992,

through Decree Law 25897. After 22 years, the SPP now has more
of five million affiliated people and plays a key role in growth
economic of Peru, as it has generated important resources for the
development of our economy and the creation of new jobs. Its
creation and development gave dynamism and greater efficiency to social security
of the country.

2. HOW DOES AN AFP WORK?

The AFPs manage pension funds under the modality ofAccounts

Capitalization Individuals (CIC)in favor of workers incorporated into
Private System of Pension Fund Administrators.

The AFPs provide retirement, disability, survival, and expense benefits.

of burial, in accordance with the Consolidated Text of the Law of the System
Private Pension System (SPP) Supreme Decree 054-97-EF.
For this purpose, they receive contributions, owned by the workers, investing them.
under the modalities permitted by law. The operations of the AFP are
are under the control and supervision of the Superintendency of Banking,
Insurance and AFP (SBS).
The main characteristics of each member's Fund are:
They are the sole property of each worker.
They constitute hereditary mass
They are unseizable.

3. TYPES OF PENSION FUNDS

There are different AFPs.
AFP HABITAT PRIMA AFP
AFP INTEGRA
PROFUTURO AFP
 The AFPs manage 4 types of Funds:
a) Type 0 Pension Fund or Capital Protection Fund
As of now, Fund 0 is not active, it is pending.
regulation by the SBS.
b) Type 1 Pension Fund This is a Fund where the investments are
of low risk, so it tends to offer moderate returns. It obtains
stable returns and is ideal for affiliates who are close to retiring or who
they have a conservative risk profile.
c) Type 2 Pension Fund of moderate growth and medium risk.
This fund presents a greater balance between profitability and risk. It obtains
moderate returns for affiliates between 45 and 60 years old or those who
they are willing to take on a higher level of risk than Fund 1
d) Type 3 Pension Fund of high growth and high risk. This is a
long-term oriented fund alternates periods of low growth and
great growth. It obtains high returns for young affiliates whose
retirement horizon is distant or those willing to take on greater
fluctuations in profitability thinking in the long term. It is more profitable
in the long term although taking on a greater risk
The profitability earned from the investments of the contributions of the

workers are deposited directly into each individual's account

of them, making it possible for the funds to multiply. Taking into
it states that the contributions remain in the account for many years
affiliate, we will see that they can easily multiply by improving
notably the pension they will achieve upon retirement.
4. AFFILIATION

The incorporation into the SPP is carried out through affiliation to an AFP, under the
affiliation procedures provided for in the law

4.1 The Affiliates

Affiliates are the workers participating in the Private System of

Pensions, those who contribute to an account throughout their working life.
pension savings, which in the SPP is referred to as Individual Account of
Capitalization, in order to build a property fund on it
worker, which will allow him to obtain a dignified pension upon reaching the age of
retirement.
To affiliate, it will be enough to contact AFP Hábitat through any of
the means it offers (phone, website) or visit any of
their agencies at the national level.

4.2 Percentages of contributions to the AFP

Contributions to the Private Pension System are divided as follows
way
. 10% of the Insurable Compensation, intended to increase
directly the Individual Capitalization Account (CIC).
. A percentage of the Insurable Remuneration, corresponding to the
commission that the AFP charges for the Administration of the Fund
Pensions.
. A percentage of the Insurable Remuneration, to pay for insurance
What will your pension and funeral expenses cover in case of disability or
death (disability insurance, survivorship, and expenses of
Burial.
4.3 When retirement is applicable
In the SPP there are two main ways to access the pension of
retirement
. Retirement by Legal Age: At the moment you decide from
the age of 65.
. Regular Early Retirement: Before the age of 65, if your
Accrued funds allow you to obtain a pension of 40% or more of
your average salary for the last 120 months.
. In addition, there are the following special retirement regimes:
. Early Retirement (Decree Law 19990)
. Early Retirement for High-Risk Workers
. Minimum Retirement Pension
SECTION VIII: Small and Microenterprise Development Company
(EDPYME)

1. DEFINITION

As expressed in Resolution SBS No. 847-94, the EDPYMES have

for the purpose of granting financing to natural and legal persons who
they carry out activities classified as small and micro enterprises,
using their own capital and the resources that come from
donations. Also, in the form of lines of credit of
financial institutions and those coming from other sources, prior to the
the corresponding authorization. The EDPYMES are authorized to grant
short, medium, and long term direct credits; grant guarantees, bonds, and others
guarantees; discount promissory notes and bills of exchange; receive lines of

financing from international cooperation institutions,

multilateral organizations, companies or financial entities and COFIDE.

Since its initial operation, an EDPYME can make transfers,

issue remittances against their offices or correspondent banks and provide services to
distance, without the need to open a myriad of agencies and incur costs
unnecessary initial fixed costs. It can also act as a trustee in
trusts, where a trustor (a civil association, NGO, agency of
cooperation or the same government) can transfer goods and assets to you as a
autonomous trust property, distinct from the assets of all agents
involved in the trust, which may allow you greater income from
commissions and appropriate training in managing an indirect portfolio
expanded, without this generating charges to the effective assets of the EDPYME.

2. Difference between an Edpyme and a Rural Savings Bank:

EDPYMES differ from rural banks, fundamentally, in that

They cannot accept sight deposits from the start.

3. Edpymes at the national level

Credit Access Credivision

Alternative Credijet
BBVA Consumer Finance My Little House
 Marcimex (before Pro Solidarity
Business GMG Services Peru
Root

4. FINANCIAL MODEL: Alternativa S.A.

Edpyme Alternativa S.A. is a microfinance institution with its main headquarters

in the city of Chiclayo, Lambayeque–Peru, in September 2001 begins
to operate in the market as a financial entity regulated by the
Superintendency of Banking and Insurance of Peru. As of today, its main
shareholders are the Abaco Savings and Credit Cooperative, the Financial Group
Diviso S.A. and Microvest LP.

4.1 PRODUCTS
4.1.1 SME Credit: Credit for the commerce, production and/or sector
services aimed at businesses with six months of existence and that
they want to invest in Working Capital or Fixed Assets.
4.1.2 SME Credit: Credit aimed at small and medium producers
dedicated to agriculture.
4.1.3 Vehicle Credit: Aimed at workers and/or employees who
belong to a public or private company and demonstrate a
permanent source of income.
4.1.4 Consumer Credit: Aimed at merchants located in markets,
galleries or stands. Payments are daily and amounts can be requested.
from S/. 200.00 to S/. 15,000.00, for a period of up to 180 days.
4.1.5 Credit improving my home: Aimed at merchants located in
markets, galleries or stalls. Payments are daily and can be requested.
amounts from S/. 200.00 to S/. 15,000.00, for a period of up to 180
days.
 CONCLUSIONS

. Non-banking financial entities are characterized by being drivers.

of regional economies, because it is a sector that drives the
economic development of certain regions, basically where poverty is
latent.

. Non-banking financial entities encourage state participation.

private initiative and the social sector regardless of the
fines that each of the mentioned sectors pursues fulfills a
specific objective, which is to meet the needs of an audience
objective that lacks the services offered by commercial banking,
population that is not of its interest due to being high risk.

. Entrepreneurs and business owners as investors have set their sights on the
non-banking financial sector, due to the growth and profitability that they have
having these economic entities and undoubtedly aware of their role by
the achievements and social goals that are pursued. A region or a society
having as a strength its productive capacity and its natural attributes,
through non-banking entities, they have managed to create chains
productive activities that have intertwined farmers, ranchers, artisans and
small business owners to integrate into the formal economy.

. Undoubtedly, the consequences of the development of the entities

non-banking financial institutions have great benefits for everyone
involved, primarily the culture of saving and good credit management
it is one of the purposes that are intended to be instilled in individuals.

. It is surprising to find that within these financial institutions

we also have non-profit institutions that have activities of
savings and credit as an important factor to fulfill its purpose
social focused on the satisfaction of a social need.
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