Application of the deposit guarantee insurance system: Adjustments

2018 - YEAR OF THE CENTENARY OF THE UNIVERSITY REFORM

COMMUNICATION “A” 6460
23/02/2018

TO FINANCIAL INSTITUTIONS:

Ref.: Circular
OPASI 2 - 541

Application of the deposit guarantee insurance system. Adjustments.

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We address you to inform you that this Institution adopted the following resolution:

“1. Replace point 5.2.2. of the rules on “Application of the deposit guarantee insurance system” with the following:

“5.2.2. Demand deposits in which interest rates higher than the reference rates are agreed, and time deposits and investments that exceed 1.3 times that rate or the reference rate plus 5 percentage points –whichever is higher–.

The reference rates are periodically disseminated by the BCRA through Communications “B”, determined according to the moving average of the last five banking business days of the passive rates that, for fixed-term deposits of up to $ 100,000 (or its equivalent in other currencies), arise from the survey conducted by the BCRA.

They will also be excluded when those interest rate limits are distorted by additional incentives or remunerations.”

2. Establish that the provisions of point 1. shall be in force for time deposits and investments made from the day following the dissemination of this communication.”

In this regard, we send you in annex the sheets that, in replacement of those previously provided, should be incorporated into the rules on “Application of the deposit guarantee insurance system”.

Finally, it is recalled that on the page of this Institution www.bcra.gob.ar, accessing “Financial System - LEGAL AND REGULATORY FRAMEWORK - Ordering and Summaries - Ordered texts of general regulations”, you will find the modifications made with texts highlighted in special characters (strikethrough and bold).

We greet you attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Matías A. Gutiérrez Girault
Issuance Manager of Rules
Darío C. Stefanelli
Principal Manager of Issuance and Regulatory Applications

ANNEX

B.C.R.A. APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM

5.2.2. Demand deposits in which interest rates higher than the reference rates are agreed, and time deposits and investments that exceed 1.3 times that rate or the reference rate plus 5 percentage points –whichever is higher–.

The reference rates are periodically disseminated by the BCRA through Communications “B”, determined according to the moving average of the last five banking business days of the passive rates that, for fixed-term deposits of up to $ 100,000 (or its equivalent in other currencies), arise from the survey conducted by the BCRA.

They will also be excluded when those interest rate limits are distorted by additional incentives or remunerations.

5.2.3. Deposits of financial entities in other intermediaries, including fixed-term certificates acquired by secondary negotiation.

5.2.4. Deposits made by persons linked, directly or indirectly, to the entity according to the guidelines defined in point 2.2. of the rules on “Credit risk apportionment”.

5.2.5. Fixed-term deposits of securities, acceptances or guarantees.

5.2.6. Immobilized balances from deposits and other excluded operations.

5.3. Coverage. Amount and formalities.

5.3.1. The guarantee shall cover the return of the deposited capital, interest, updates –by the Reference Stabilization Coefficient (“CER”) in deposits of Purchasing Value Units - Law 25.827 (“UVA”) and by the construction cost index for Greater Buenos Aires (“ICC”) in deposits of Housing Units - Law 27.271 (“UVI”)–, and exchange rate differences, as applicable, accrued up to the date of revocation of the authorization to operate or up to the date of suspension of the entity by application of article 49 of the BCRA Charter, if this measure had been adopted prior to that, without exceeding –for those concepts– $ 450,000.

That date shall be considered for the determination of the CER and the ICC for impositions in Purchasing Value Units “UVA” and in Housing Units “UVI”, respectively, as well as for the determination of the “Reference exchange rate” for the conversion to pesos of deposits in foreign currency, for the purposes of establishing the amount reached by the coverage.

5.3.2. In accounts and impositions constituted in the name of two or more persons, the guarantee limit shall be $ 450,000, whatever the number of holders, distributing proportionally the amount of the guarantee that corresponds among the holders.

5.3.3. The total guaranteed to a determined person, by accumulation of accounts and deposits reached by the coverage, as provided previously, may not exceed the limit of $ 450,000.

Version: 17a. COMMUNICATION “A” 6460
Validity:
24/2/2018
Page 3

B.C.R.A.
ORIGIN OF THE PROVISIONS CONTAINED IN THE RULES ON “APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM”

ORDERED TEXT	ORIGINATING RULE	OBSERVATIONS
Point	Paragraph	Com.	Annex	Point	Paragraph
1.		“A” 2337	I	1.	1° and 2°
2.	1°	"A" 2337	I	2.	1°	S/Dec. No. 1292/96, Com. "A" 2807, 3358, 4206, 4271, 5641 and 5943.
	2°	"A" 2337	I	2.	2°	S/Dec. No. 1292/96.
3.	1°	"A" 2337	I	3.	1°
3.1.		"A" 2337	I	3.1.
3.2.		"A" 2337	I	3.2.
3.3.		"A" 2337	I	3.3.
3.3.1.		"A" 2337	I	3.3.1.
3.3.2.		"A" 2337	I	3.3.2.
3.	2°	"A" 2337	I	3.	2°
4.	1°	"A" 2337	I	4.	2° and 3°	S/Com. "B" 5806 (8th paragraph), "A" 3068, 5710 and 5720.
	2°	"A" 2337	I	4.	4°
5.		"A" 2337	I	6.
5.1.	1°	"A" 2337	I	6.1.	1°
5.1.1.		"A" 2337	I	6.1.	i)
5.1.2.		"A" 5108
5.1.3.		"A" 2337	I	6.1.	ii)
5.1.4.		"A" 2337	I	6.1.	iii)
5.1.5.		"A" 2337	I	6.1.	iv)	S/Com. “A” 5091, 5108, 5164, 5234 and 6435.
5.1.6.		“A” 2482		1.	2°
5.1.7.		“B” 5806			3°	S/Com. “A” 2807.
5.2.		“A” 2337	I	6.4.		S/Com. “A” 2399.
5.2.1.		“A” 2337	I	6.4.1.		S/Com. “A” 2399.
5.2.2.		“A” 2337	I	6.3.		S/Com. “A” 2777, 3358, 5108, 5234, 5640, 5654, 5891, 6435 and 6460. Includes interpretive clarification.
5.2.3.		“A” 2337	IV			S/Dec. No. 540/95, art. 12, subparagraph c).
5.2.4.		“A” 2337	I	6.2.		S/ Com. “A” 5520.
5.2.5.		“A” 2337	IV			S/Dec. N° 540/95, art. 12, inc. c).
5.2.6.		“A” 2807		5.2.7.
5.3.		“A” 2337	I	6.		S/Dec. N°540/95.
5.3.1.		“A” 2337	I	6.5.		S/Com. “A” 4681, 5170, 5641, 5943 and 6125.
5.3.2.		“A” 2337	I	6.7.	1°	S/Dec. N°540/95 and Com. “A” 5170, 5641 and 5943.
5.3.3.		“A” 2337	I	6.7.	2°	S/Dec. N°540/95 and Com. "A" 5170, 5641 and 5943.
5.3.4.		"A" 2337	I	6.8.		S/Dec. N°540/95.
5.3.5.		"A" 2337	I	6.9.