Application of the deposit guarantee insurance system. Update

"2013 - YEAR OF THE BICENTENNIAL OF THE 1813 GENERAL CONSTITUENT ASSEMBLY" COMMUNICATION "A" 5417 23/04/2013 TO FINANCIAL INSTITUTIONS:
Ref.: Circular
OPASI 2 - 443
Application of the deposit guarantee insurance system. Update.

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We address you to send you in annex the pages that, replacing those previously provided, should be incorporated into the ordered text of the rules referred to, for the purposes of updating the methodology for calculating the "Vi" component of the Iar/a indicator, provided for in point 7.1. of those rules for the purposes of determining the additional contribution of entities with a "CAMELS" rating. The aforementioned update is made pursuant to the resolution made known through Communication "A" 5369, in relation to the components of the expression with which the minimum capital requirement for credit risk is determined - point 3.1. of Section 3. of the rules on "Minimum capital of financial institutions". Likewise, it is recalled that on the page of this Institution www.bcra.gov.ar, accessing "regulations" ("ordered texts"), 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 Matías A. Gutiérrez Girault Darío C. Stefanelli Manager of Issuance of Rules Principal Manager of Issuance and Regulatory Applications
ANNEX

7. Determination of the additional contribution.
   The normal contribution shall be corrected according to the result obtained for each entity by an index that, constructed based on the factors indicated in point 3., shall fluctuate between 1 and 2.
   7.1. Entities with a "CAMELS" rating.
   It shall arise from the following expression:
   Ic = {(Ipr/f + Iar/a + 2 x Icamels)/4} - Irpc/Kmin where:
   Ipr/f: indicator referred to in point 3.3.1. which shall take the value arising from the following expression:
   Ipr/f = (Vi/0.04)
   1.20 where
   Vi: ratio between the minimum provisions required under point 2.1. of Section 2. of the rules on "Minimum provisions for bad debt risk" and the total financing included (Section 2. of the rules on "Classification of debtors"). This concept includes the balances of guarantees granted for obligations assumed on behalf of third parties, recorded as of the last day of the month in question, according to the classification reported in the debtor position statement. The value of the index shall be capped between 1 and 2.5. That is, in cases where the result of the expression is, respectively, lower or higher than those lower and upper limits, 1 or 2.5 shall be taken, as applicable. Iar/a: indicator referred to in point 3.3.2. which shall take the value arising from the following expression:
   Iar/a= (Vi/0.70)
   1.30 where
   Vi: ratio between the risk-weighted credit assets -APRc- of the entity and the sum of concepts A and PFB -the latter multiplied by the corresponding CCF-, in accordance with the provisions of point 3.1. of Section 3. of the rules on "Minimum capital of financial institutions". Exposures to the non-financial public sector shall be excluded from the computation. B.C.R.A. APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM Version: 6a. COMMUNICATION "A" 5417 Effective:
   23/04/2013

The value of the index shall be capped between 1 and 2. That is, in cases where the result of the expression is, respectively, lower or higher than those lower and upper limits, 1 or 2 shall be taken, as applicable. Icamels: indicator referred to in point 3.1. The value arising from the following table shall be taken:
Rating Index
1 1.00
2 1.33
3 1.66
4 2.00
5 2.00
The rating assigned to the financial institution by the Superintendency of Financial and Exchange Institutions shall be considered for the purposes of calculating the contributions to the Deposit Guarantee Fund that are payable as from the third month following that in which the relevant notification takes place. Irpc/Kmin: indicator referred to in point 3.2. The value arising from the following table shall be taken:
RPC/minimum capital requirement ratio
Index up to 0.90 - 0.50 more than 0.90 to 0.95 - 0.25 more than 0.95 to 1.00 - 0.10 more than 1.00 to 1.10 0.00 more than 1.10 to 1.20 + 0.05 more than 1.20 to 1.30 + 0.10 more than 1.30 to 1.50 + 0.20 higher than 1.50 + 0.30 The value of the Ic index shall be capped between 1 and 2. That is, in cases where the result of the expression is, respectively, lower or higher than those lower and upper limits, 1 or 2 shall be taken, as applicable. For the calculation of the ratios, the amounts corresponding to the third month prior to the due date of the contributions shall be considered. B.C.R.A. APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM Version: 5a. COMMUNICATION "A" 5417 Effective:
23/04/2013

APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM ORDERED TEXT SOURCE RULE Point Paragraph. Com. Annex Point Paragraph REMARKS
7. 1st "A" 2337 II 1. S/Com. "A" 2561.
7.1. "A" 2337 II 1. S/Com. "A" 2561, 4040, 5369
and 5417.
7.2. "A" 2337 II 2. S/Com. "A" 2561.
8. "A" 2807 II and III
8.1. "A" 2807 II S/Law 25.089.
8.2. "A" 2807 III S/Dec. 1292/99 and Com. "A"
4206.