Circular LISOL 1-1133: Minimum Capital of Financial Entities. Minimum Capital for Credit Risk. Adjustments.

"YEAR OF ARGENTINE GREATNESS" COMMUNICATION “A” 8395 29/01/2026 TO FINANCIAL ENTITIES: Ref.: Circular LISOL 1-1133: Minimum Capital of Financial Entities. Minimum Capital for Credit Risk. Adjustments.

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We address you to inform that this Institution has adopted the resolution which, in its relevant part, provides: “- Establish that exposures to multilateral development banks that do not qualify for the application of a 0% (zero percent) risk weight, according to point 2.12.3.2 of the Codified Text on Minimum Capital of Financial Entities, shall be subject to the following risk weights:

Rating	Risk Weight
AAA up to AA–	20%
A+ up to A–	30%
BBB+ up to BBB–	50%
BB+ up to B–	100%
Below B–	150%
Unrated	50%
Regarding this, we forward the sheets that, in replacement of those previously provided, should be incorporated into the Codified Text on Minimum Capital of Financial Entities. In this sense, it is recalled that on this Institution’s website www.bcra.gob.ar, by accessing “Sections - Financial System – LEGAL AND REGULATORY FRAMEWORK – Codifications and summaries – Consolidated general regulatory texts”, the modifications made with specially highlighted text (strikethrough and bold) will be found.
We remain, respectfully yours,
CENTRAL BANK OF THE ARGENTINE REPUBLIC
Ana M. Dentone Darío C. Stefanelli Marina Ongaro
Deputy General Manager of Technical-Prudential Regulations	Main Manager of Issuance and Regulatory Applications

ANEXO (ANNEX)

Rating	Risk Weight
AAA up to AA–	20%
A+ up to A–	50%
BBB+ up to BBB–	100%
BB+ up to B–	100%
Below B–	150%
Unrated	100%

2.12.2.7. To the International Payments Bank, the International Monetary Fund, the European Central Bank, the European Stability Mechanism and the European Financial Stability Facility. 0 2.12.2.8. To the non-financial provincial, municipal and/or CABA public sector for the acquisition of public titles issued in pesos by the central administration, when they do not benefit from any of the guarantees established in point 4.1.1 of the TO on Financing to the Non-Financial Public Sector, according to the credit rating assigned to the corresponding jurisdiction.

Rating	Risk Weight
AAA up to AA–	20%
A+ up to A–	50%
BBB+ up to BBB–	100%
BB+ up to B–	150%
Below B–	200%
Unrated	200%

2.12.3. Exposures to multilateral development banks (MDBs). 2.12.3.1. Exposures to entities that, in the opinion of the Basel Committee on Banking Supervision, satisfactorily meet the admissibility criteria contemplated in international standards. 0 2.12.3.2. Others.

Rating	Risk Weight
AAA up to AA–	20%
A+ up to A–	30%
BBB+ up to BBB–	50%
BB+ up to B–	100%
Below B–	150%
Unrated	50%

2.12.4. Exposures to financial entities. 2.12.4.1. Exposures to financial entities by Group 1 (SCRA) financial entities.

Credit risk assessment of the counterparty	Grade A	Grade B	Grade C
General risk weight	40%	75%	150%
Risk weight for short-term exposures	20%	50%	150%

B.C.R.A. MINIMUM CAPITAL OF FINANCIAL ENTITIES Section 2. Minimum capital for credit risk. Version: 2nd. COMMUNICATION “A” 8395 Effective date: 30/01/2026 Page 18

The risk weight of exposures to financial entities cannot be lower than the weight applicable to the jurisdiction in which the counterparty is established when: i) the exposure is not denominated in the local currency of the counterparty’s jurisdiction of establishment; or ii) the debt is contracted by a branch or subsidiary of the counterparty abroad, and is not denominated in the local currency of the jurisdiction in which it operates. The treatment provided for in items i) and ii) excludes self-liquidating contingent lines for foreign trade financing with an original contractual term of up to one year.

2.12.4.2. Exposures to financial entities by Group 2 financial entities. i) Short-term exposures. 20 ii) Others. 100

2.12.5. Exposures to companies. 2.12.5.1. Companies with “investment grade”. 65 2.12.5.2. SMEs that do not meet the criteria set forth in point 2.8.3. 85 2.12.5.3. Specialized financing for large infrastructure projects. Pre-operational stage. 130 2.12.5.4. Others. 100

2.12.6. Retail exposures. 2.12.6.1. Regulatory transactional retail exposures. 45 2.12.6.2. Regulatory non-transactional retail exposures. 75 2.12.6.3. Non-regulatory retail exposures. 100

2.12.7. Exposures guaranteed by reciprocal guarantee societies or public guarantee funds registered in the BCRA registries. 50

B.C.R.A. MINIMUM CAPITAL OF FINANCIAL ENTITIES Section 2. Minimum capital for credit risk. Version: 2nd. COMMUNICATION “A” 8395 Effective date: 30/01/2026 Page 19

2.12.8. Exposures with mortgage guarantee. 2.12.8.1. Regulatory exposures with mortgage guarantee on residential real estate. i) Regarding credit support not exceeding 55% of the property value. 20 ii) On the amount exceeding 55% of the property value, the counterparty’s risk weight will be applied.

2.12.8.2. Regulatory exposures with mortgage guarantee on commercial real estate. i) Up to the amount equivalent to 55% of the property value, the 60% risk weight or the counterparty’s risk weight will be applied, whichever is lower. ii) On the amount exceeding 55% of the property value, the counterparty’s risk weight will be applied.

2.12.8.3. Non-regulatory exposures with mortgage guarantee. 150

The counterparty’s risk weight –referred to in points 2.12.8.1 and 2.12.8.2.– shall be that which would be assigned to an exposure without mortgage guarantee. To this effect, a 75% risk weight will be applied for exposures to natural persons, 85% for exposures to SMEs, and the weights set forth in point 2.12 for the rest of exposures.

2.12.9. Exposures in default situation. 2.12.9.1. Regulatory exposures with mortgage guarantee on residential real estate. 100 2.12.9.2. Exposures or tranches not covered by credit risk coverages of Section 5, not contemplated in point 2.12.9.1. i) With specific provisions less than 20% of the outstanding balance. 150 ii) With specific provisions equal to or greater than 20% and less than 50% of the outstanding balance. 100 iii) With specific provisions equal to or greater than 50% of the outstanding balance. 50

2.12.9.3. Part of the exposures that benefit from credit risk coverages. The provisions of Section 5 shall be taken into account.

B.C.R.A. MINIMUM CAPITAL OF FINANCIAL ENTITIES Section 2. Minimum capital for credit risk. Version: 2nd. COMMUNICATION “A” 8395 Effective date: 30/01/2026 Page 20

2.12.10. Exposures to instruments (non-deductible part of the RPC as provided in Section 8.). 2.12.10.1. Exposures to instruments by Group 1 financial entities. i) Subordinated debt and equity instruments that do not meet the characteristics to be considered as shares. 150 ii) Shares (defined according to point 2.11.3.). 250

2.12.10.2. Exposures to instruments by Group 2 financial entities. i) Subordinated debt. 150 ii) Equity participations. 250

2.12.11. Securitization positions. The provisions of point 3.1 shall be taken into account. 2.12.12. Non-failed cash transactions to be settled. 0 2.12.13. Failed DvP and non-DvP transactions. The provisions of point 4.1 shall be taken into account. 2.12.14. Exposures to CCPs. The provisions of point 4.3 shall be taken into account (except for cases contemplated in point 4.1). 2.12.15. Derivative transactions not included in point 2.12.14. The provisions of point 4.2 shall be taken into account. 2.12.16. Exposures to natural and legal persons originated by installment purchases made until 25/11/21, via foreign travel credit cards and other tourist services abroad (such as accommodation, car rental, etc.), whether made directly with the service provider or through a travel and/or tourism agency or web platforms. 1250 2.12.17. Other assets and/or off-balance sheet items. 100

2.13. Off-balance sheet items. Credit Conversion Factors (CCF). Off-balance sheet items –including commitments for financing and correspondent lines to foreign entities, guarantees granted, sureties on deferred payment checks, documentary credits and acceptances, documents rediscounted in other financial entities, and other credit agreements– shall be converted into credit equivalents using the following CCFs, after which the risk weights established in point 2.12 will be applied, taking into account, where applicable, the provisions established in Section 5.:

B.C.R.A. MINIMUM CAPITAL OF FINANCIAL ENTITIES Section 2. Minimum capital for credit risk. Version: 2nd. COMMUNICATION “A” 8395 Effective date: 30/01/2026 Page 21

Concept	CCF -in %-
i) Direct credit substitutes, such as general debt guarantees –including stand-by letters of credit used as financial guarantees– and acceptances and endorsements with liability.	100
ii) Contingent items related to customer commercial operations –such as those arising from guarantees of compliance with commercial obligations–.	50
iii) Short-term commercial letters of credit –i.e., with a residual term of up to one year– self-liquidating that cover the movement of goods –such as documentary credits guaranteed by underlying documentation–. Both the issuing bank and the confirming bank will be subject to the CCF set forth in this item and the corresponding risk weight based on the counterparty.	20
iv) Asset sales with repurchase agreements –even in repo operations– or with liability for the transferor, and generally transactions of a similar nature, in which the entity retains the credit risk of the asset (weighted according to the asset and not based on the counterparty). Excluded from this treatment are titles delivered as collateral for derivative transactions provided in point 4.2.	100
v) Commitments to acquire assets not recorded on the balance sheet (weighted according to the asset and not based on the counterparty).	100
vi) Short-term securities issuance lines (note issuance facility, NIF) and revolving securities subscription lines (revolving underwriting facility, RUF), regardless of the term of the underlying facility.	50
vii) Committed credit lines, regardless of the maturity of the underlying facility.	40
viii) Commitments that may be cancelled discretely and unilaterally by the financial entity, or that are automatically cancelled in case of deterioration of the debtor’s solvency.	10

Off-balance sheet items referring to commitments shall be subject to the lowest applicable CCF.

B.C.R.A. MINIMUM CAPITAL OF FINANCIAL ENTITIES Section 2. Minimum capital for credit risk. Version: 2nd. COMMUNICATION “A” 8395 Effective date: 30/01/2026 Page 22

MINIMUM CAPITAL OF FINANCIAL ENTITIES CONSOLIDATED TEXT - ORIGIN STANDARD

OBSERVATIONS	Section	Point	Paragraph	Com. Cap./Anexo	Point	Paragraph
2.	“A”	8067	1.
2.9.2.6.	“A”	8067	1.
2.9.2.7.	“A”	8067	1.
2.9.2.8.	“A”	8067	1.
2.10.	“A”	8067	1.
2.11.	“A”	8067	1.
2.11.1.	“A”	8067	1.
2.11.2.	“A”	8067	1.
2.11.3.	“A”	8067	1.
2.12.	“A”	5369	I	According to Com. “A” 6260.
2.12.1.	“A”	5369	I
2.12.1.1.	“A”	5369	I
2.12.1.2.	“A”	5369	I
2.12.1.3.	“A”	5369	I	According to Com. “A” 6690 and 8067.
2.12.1.4.	“A”	5369	I
2.12.2.	“A”	5369	I
2.12.2.1.	“A”	5369	I	According to Com. “A” 5580.
2.12.2.2.	“A”	5369	I	According to Com. “A” 5580 and 5831.
2.12.2.3.	“A”	5369	I	According to Com. “A” 6024 and 6221.
2.12.2.4.	“A”	5369	I	According to Com. “A” 6004.
2.12.2.5.	“A”	5369	I	According to Com. “A” 6004.
2.12.2.6.	“A”	6004	4.
2.12.2.7.	“A”	5369	I	According to Com. “A” 6004 and 8067.
2.12.2.8.	“A”	6270		According to Com. “A” 8067.
2.12.3.	“A”	5369	I
2.12.3.1.	“A”	5369	I	According to Com. “A” 5831 and 8067.
2.12.3.2.	“A”	5369	I	According to Com. “A” 6344, 8067 and 8395.
2.12.4.	“A”	5369	I	According to Com. “A” 6004 and 8067.
2.12.4.1.	“A”	8067	1.
2.12.4.2. i)	“A”	5369	I	According to Com. “A” 8067.
2.12.4.2. ii)	“A”	5369	I	According to Com. “A” 6004, 6006 and 8067.
2.12.5.	“A”	5369	I	According to Com. “A” 5580 and 8067.
2.12.6.	“A”	5369	I	According to Com. “A” 5580, 6221 and 8067.
2.12.7.	“A”	5369	I