Bank of Portugal Notice No. 1/2012

Notices from the Bank of Portugal Bank of Portugal Notice No. 1/2012

Considering that, in the context of the Economic and Financial Assistance Programme for Portugal, it was established that the impacts of the partial transfer of defined benefit post-employment plans to the Social Security sphere and the special inspection program (SIP) on regulatory capital adequacy ratios would be temporarily neutralized, and that the resulting capital requirements must be met by institutions until June 30, 2012;

The Bank of Portugal, using the competence conferred upon it by Article 17 of its Organic Law, by paragraph 1 of Article 96 of the General Regime of Credit Institutions and Financial Companies (RGICSF), approved by Decree-Law No. 298/92 of December 31, and by paragraph 1 of Article 36 of Decree-Law No. 104/2007 of April 3, determines the following:

Article 1. Scope of Application

1 - This Notice is applicable to all institutions subject to the supervision of the Bank of Portugal, on an individual basis, that proceed with the partial transfer of their defined benefit post-employment plans to the Social Security sphere or that are covered by the special inspection program defined in the context of the Economic and Financial Assistance Programme for Portugal.

2 - This Notice is also applicable to all institutions subject to the supervision of the Bank of Portugal, on a consolidated basis, whose consolidation perimeter relevant for supervisory purposes includes any of the institutions provided for in the preceding paragraph.

Article 2. Temporary Neutralization of Certain Prudential Impacts

1 - The impacts on the calculation of capital and the determination of minimum capital requirements for the institutions referred to in the previous article, assessed with reference to December 31, 2011, and resulting from the partial transfer of defined benefit post-employment plans to the Social Security sphere and the special inspection program, may be deferred until June 30, 2012.

2 - The provisions of paragraph 1 of this article cover the impacts on minimum capital requirements that result from transactions carried out by the institutions with their pension funds, provided that under normal market conditions, in order to equip these funds with the necessary liquid means to deliver to the State, in the context of the aforementioned transfer operation.

3 - The impacts on minimum capital requirements that result from transactions carried out by the institutions with their pension funds, during the first half of 2012, under the conditions and for the purposes provided for in paragraph 2 of this article, may also be deferred until June 30, 2012.

Article 3. Enabling Norm

The Bank of Portugal will issue the Instructions deemed necessary for the monitoring of the transitional regime defined in this Notice.

Article 4. Entry into Force

This Notice takes effect on December 31, 2011.

January 10, 2012. - The Governor, Carlos da Silva Costa.