Bank of Portugal Notice No. 2/2009

Avisos do Banco de Portugal
Notice of the Bank of Portugal No. 2/2009
Considering the amendments introduced into Notice of the Bank of Portugal No. 12/92 by Notice of the Bank of Portugal No. 6/2008, regarding the treatment of unrealized gains and losses on debt securities classified as available-for-sale assets, for the purpose of calculating own funds; The Bank of Portugal, using the competence conferred upon it by paragraph 1 of Article 96 of the General Regime of Credit Institutions and Financial Companies, approved by Decree-Law No. 298/92 of December 31, determines the following:
Notice of the Bank of Portugal No. 12/92, published in the Diário da República, 2nd series, No. 299, 2nd supplement, of December 29, 1992, is subject to the following modifications:

1. Article 9.º-C shall have the following wording:
   «9.º-C Only for institutions that prepare their individual financial statements in accordance with the provisions of paragraphs 2 and 3 of Notice of the Bank of Portugal No. 1/2005 (NCA), the value of asset elements to be deducted in accordance with paragraphs 9 and 9.º-D corresponds to their respective balance sheet value, except for the value:
   a) Of elements classified as available-for-sale assets associated with unrealized gains and losses that have been excluded from the determination of own funds, which value must be reduced by such gains or increased by such losses, according to subparagraph d) of paragraph 1 of Article 4.º-A; b) Of elements classified as available-for-sale assets associated with unrealized gains that have been considered as a positive element of own funds, which value must be reduced by the non-eligible portion of those gains, according to subparagraph a) of paragraph 2 of Article 4.º-A; c) Of elements reclassified from available-for-sale assets to other categories of assets associated with unrealized gains and losses that have been excluded from the determination of own funds, which value must be reduced by such gains or increased by such losses; d) Of participations to which the equity method is applied, which value must exclude revaluation-equity differences indicated in point 6-B) of paragraph 1 of Article 4.º, when these are included in that value. Institutions covered by this paragraph are not subject to the discipline contained in Article 9.º-B of this notice.»
2. Paragraph 4 of Article 17.º-A shall have the following wording:
   «17.º-A (...)
   1 - (...)
   2 - (...)
   3 - (...)
   4 – The provisions of subparagraphs a) to c) of Article 9.º-C shall apply for the purposes of the value of asset elements to be deducted in accordance with paragraphs 9 and 9.º-D.»
3. This Notice enters into force on the day following its publication.
   July 7, 2009. - The Governor, Vítor Constâncio.