I- New regulatory framework
On October 28, 2025, Resolution CDMF-XXXVII-1-25, “Regulations for the Authorization and Regulation of Savings and Credit Cooperatives,” was published in La Gaceta No. 200. It was approved on October 22, 2025, in the context of Law No. 1237, “Law on Reforms and Additions to Law No. 561, General Law on Banks, Non-Bank Financial Institutions, and Financial Groups,” published on February 25, 2025.
This reform marks a change in the regulatory model applicable to savings and credit cooperatives (CAC), formally integrating them into the country’s financial supervision system.
Article 134 septies of the amendment to the Banking Law establishes that the Superintendency of Banks and Other Financial Institutions (SIBOIF) is the authority responsible for regulating, supervising, monitoring, and overseeing the savings and credit cooperatives covered by said law, empowering it to issue the procedures, instructions, and administrative provisions necessary for their operation.
This regulatory design replaces the traditional model of limited cooperative supervision with a regime of Prudential Financial control, aligned with the standards of the banking system.
II- Traditional legal framework for cooperatives
Internally, cooperatives continue to be governed by Law No. 499, the “General Law on Cooperatives,” with its amendments and regulations, which constitutes the legal basis for their incorporation, operation, organization, supervision, and dissolution. The Law defines a cooperative as an autonomous association of people who voluntarily unite to meet common economic, social, and cultural needs through a jointly owned and democratically managed enterprise.
The Nicaraguan Institute for Cooperative Development (INFOCOOP) continues to promote, register, and supervise the cooperative sector.
Cooperatives are classified according to their purpose as production, consumer, savings and credit, transport, housing, and other types. According to INFOCOOP’s Report on Financial Intermediation Cooperatives, as of May 2025, there were 122 active financial intermediation cooperatives.
III- Dual supervisory regime: INFOCOOP and SIBOIF
The reform introduces a dual regulatory system:
- Savings and credit cooperatives that carry out regular financial intermediation and whose total assets are equal to or greater than C$100,000,000.00 (USD 2,730,427.61) are subject to regulation, supervision, monitoring, and direct oversight by SIBOIF.
- Cooperatives with assets below this threshold maintain their traditional cooperative status but must register with SIBOIF and submit the information it requires.
This scheme makes certain cooperatives regulated financial entities with prudential obligations that are essentially comparable to those of non-bank financial institutions.
IV- Regulations for the authorization and regulation of CACs
Resolution CDMF-XXXVII-1-25 establishes the technical and regulatory framework applicable to savings and credit cooperatives with assets equal to or greater than C$100,000,000.00 (USD 2,730,427.61), regulating their entire cycle: incorporation, authorization, operation, supervision, and termination.
Relevant structural aspects:
- Incorporation and authorization
A formal procedure is established before the SIBOIF, which includes an application addressed to the Superintendent, legal and corporate documentation, a feasibility study, information on promoting members, and proof of the lawful origin of the assets.
Once the requirements have been verified, the Superintendent submits the application to the SIBOIF Board of Directors, which will make a decision within a maximum period of 120 days. If approved, INFOCOOP is notified for registration in the National Registry of Cooperatives and the Financial Analysis Unit is notified for registration as a regulated entity.
- Commencement of operations
CACs must demonstrate complete legal formalization, appointment of authorities, operational infrastructure, technological systems, human resources, policies, manuals, and internal risk management regulations.
- Operating authorization
The CAC must demonstrate to SIBOIF full compliance with the prerequisites for operating.
- Regulatory capital
A minimum capital ratio of 10% of total assets is established, empowering SIBOIF to require higher levels for prudential reasons or due to risk profile.
- Operations and limits
CACs may carry out active and passive operations, including taking deposits, granting loans, and issuing debit and credit cards. Among the relevant limits are individual credit: maximum 10% of the capital calculation base, and loans to members of the Board and related parties: maximum 25% combined.
- Application of the General Banking Law
Provisions of Law No. 561 are incorporated in areas such as surplus distribution, loss coverage, deposit regime, interest rates and default interest, information to debtors, financial secrecy, outsourcing of operations, and credit endorsement.
- Risk management and auditing
Requirement for formal risk management systems, ongoing internal auditing, and annual external auditing by firms registered with SIBOIF.
- Supervision and corrective measures
SIBOIF is empowered to conduct inspections, issue corrective measures, impose sanctions, and order the cessation of operations when appropriate.
V- Transitional regime
The regulation establishes transitional provisions for cooperatives already in operation, granting a period of 120 days from its entry into force to submit an application for registration with SIBOIF.
VI- Conclusion
The new regulatory framework represents a change of model for savings and credit cooperatives in Nicaragua:
- There is a shift from a classic cooperative scheme to a hybrid cooperative-financial model.
- Formal prudential supervision is introduced.
- Capital, risk management, corporate governance, and financial control standards are incorporated.
- CACs are no longer purely associative structures and are functionally integrated into the regulated financial system.
This new regulatory framework requires cooperatives to reconfigure their operations, corporate structure, and compliance, transforming their economic role, internal control structure, and regulatory exposure.
Link to the relevant regulation: http://legislacion.asamblea.gob.ni/gacetas/2025/10/g200.pdf