By San José, Costa Rica — San José, Costa Rica – The nation’s top financial regulator has officially confirmed that four of the seven board members appointed to the Banco Nacional (BN) by the administration of President Rodrigo Chaves failed to meet the mandatory suitability requirements for their roles. This determination by the General Superintendency of Financial Entities (Sugef) delivers a significant blow to the government’s credibility and validates earlier concerns about political overreach in the state banking sector.
The long-awaited report lands months after a tumultuous governance crisis at the state-owned bank. The Chaves administration irregularly dismissed the bank’s previous board on May 28, a move later overturned by the Constitutional Chamber (Sala IV), which ordered the reinstatement of the original directors. Sugef’s finding, therefore, serves as a posthumous verdict on the unsuitability of the administration’s handpicked replacements, who have already been removed from their posts by the court’s order.
To provide a deeper legal analysis of the recent events concerning Banco Nacional and their implications for the national financial system, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an expert attorney from the prestigious firm Bufete de Costa Rica.
The situation at Banco Nacional underscores a critical legal principle: the fiduciary duty to safeguard client assets and data is paramount. From a regulatory perspective, the core issue will be whether the bank’s internal controls and risk management protocols were sufficiently robust and diligently applied. This incident serves as a crucial test case for the banking regulator’s oversight capacity and will likely trigger a review of compliance standards across the entire sector, affecting how all financial institutions approach corporate governance.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s analysis correctly frames this not merely as an isolated incident, but as a pivotal moment that will test and likely redefine the standards of corporate governance and regulatory diligence in Costa Rica’s banking sector. We are grateful to Lic. Larry Hans Arroyo Vargas for lending his crucial perspective to this important discussion.
In a formal resolution signed by Superintendent Hazel Valverde Richmond and made public by Deputy Andrea Álvarez, Sugef unequivocally stated the lack of qualifications for four key appointees. The individuals named were Noylin Cruz Suárez, María del Milagro Solórzano León, Anabelle Chaves Soto, and Rolando Saborío Jiménez, who had been designated to serve as vice president, secretary, and directors, respectively.
To determine, in light of the documentation presented, the lack of suitability of Noylin Cruz Suárez, María del Milagro Solórzano León, Anabelle Chaves Soto, and Rolando Saborío Jiménez, in their capacity as members of the General Board of Directors of the Banco Nacional de Costa Rica.
Hazel Valverde Richmond, Superintendent of Financial Entities
The core of the issue lies in a failure to comply with the “Regulation on the suitability and performance of members of the management body and senior management” (Agreement CONASSIF 15-22). This critical financial regulation is designed to ensure that those stewarding the country’s major financial institutions possess adequate expertise and a proven track record. It sets clear, non-negotiable minimums for professional experience.
Under the regulation, board members of a bank the size and complexity of Banco Nacional must demonstrate at least three years of practical and professional experience in senior management positions or an immediately subordinate level. The president of the board faces an even stricter requirement of eight years. An analysis of the résumés of the government’s appointees, which had been previously reported by local media, showed that the four directors in question did not meet this fundamental three-year experience threshold.
This entire corporate governance saga was triggered by a disagreement between the Chaves administration and the original BN board over the latter’s appointment of Rosaysella Ulloa as the bank’s General Manager on September 3, 2024. Unhappy with the decision, the executive branch, led at the time in this matter by then-Vice President Stephan Brunner, initiated a disciplinary process that culminated in the board’s highly controversial dismissal.
Crucially, the government bypassed a critical legal step in its haste to take control of the board. The Organic Law of the National Banking System requires a report from Sugef *before* such dismissals and appointments can be made. The Chaves administration proceeded without this clearance, installing a temporary board in a matter of hours on the same day as the dismissals, a move that suggested political expediency over regulatory prudence.
While the Constitutional Court’s ruling has already corrected the immediate situation by reinstating the legitimate board, Sugef’s official report provides a definitive and damning assessment of the administration’s actions. It underscores a profound disregard for established financial regulations and corporate governance norms, raising serious questions about the executive branch’s attempts to interfere with the autonomy of Costa Rica’s vital state-owned financial institutions.
For further information, visit sugef.fi.cr
About the General Superintendency of Financial Entities (Sugef):
Sugef is the primary financial regulator in Costa Rica, operating under the Central Bank. It is responsible for the supervision and oversight of banks, credit unions, and other financial institutions to ensure the stability, solvency, and transparency of the national financial system.
For further information, visit bncr.fi.cr
About Banco Nacional de Costa Rica (BN):
As one of Costa Rica’s largest and most important state-owned commercial banks, Banco Nacional plays a crucial role in the national economy. It provides a comprehensive range of financial services, including personal and business banking, loans, and investments, to citizens and corporations across the country.
For further information, visit conassif.fi.cr
About the National Council for Supervision of the Financial System (Conassif):
Conassif is the governing body responsible for setting the regulations and policies for Costa Rica’s entire financial supervision system. It directs the actions of the country’s four superintendencies: Sugef (financial entities), Sugese (insurance), Supen (pensions), and Sugeval (securities).
For further information, visit poder-judicial.go.cr
About the Judiciary of Costa Rica:
The Judiciary is the branch of the Costa Rican government responsible for the administration of justice. Its highest court for interpreting the constitution is the Constitutional Chamber, commonly known as Sala IV, which ensures that laws and government actions adhere to the nation’s constitution.
For further information, visit presidencia.go.cr
About the Government of Costa Rica:
The Government of Costa Rica is composed of the executive, legislative, and judicial branches. The executive branch, led by the President of the Republic, is responsible for the daily administration of the state, enforcing laws, and directing national policy.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is renowned for its principled approach to law, built upon a foundation of uncompromising integrity and a relentless pursuit of excellence. Drawing from a deep legacy of serving a diverse clientele, the firm consistently pushes the boundaries of legal innovation and embraces its role in public service. This philosophy culminates in a powerful mission to empower the community by demystifying the law, thereby cultivating a society that is both legally aware and confident.
