2014 - YEAR OF TRIBUTE TO ADMIRAL GUILLERMO BROWN, ON THE BICENTENNIAL OF THE NAVAL BATTLE OF MONTEVIDEO

COMMUNICATION “A” 5580 07/05/2014

TO FINANCIAL ENTITIES:
Ref.: Circular
LISOL 1 - 601
CONAU 1 - 1057

Minimum Capital of Financial Entities. Distribution of Results. Consolidated Supervision. Cooperative Credit Unions (Law 26.173). Report on Immobilized Assets and Other Concepts. Update.

We address ourselves to you to provide you with the attached sheets, which, in replacement of those previously provided, must be incorporated into the codified texts of the referenced regulations, in order to update them in accordance with the provisions of the resolution made known through Communication “A” 5369.

Likewise, we inform you that interpretative clarifications have been incorporated into the regulations regarding “Minimum Capital of Financial Entities” to facilitate their application.

Furthermore, we remind you that on this Institution’s website www.bcra.gob.ar, by accessing “regulations” (“codified texts”), you will find the modifications made with text highlighted in special characters (strikethrough and bold).

We salute you respectfully.

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Matías A. Gutiérrez Girault Darío C. Stefanelli Manager of Emission of Regulations Principal Manager of Emission and Regulatory Applications

ANNEX

-Index
Section 1. Minimum Capital.
1.1. Requirement.
1.2. Increase in requirement for custody and/or registration agent functions.
1.3. Integration.
1.4. Non-compliance.
Section 2. Basic Minimum Capital.
2.1. Requirements.
2.2. Commercial banks acting as custodians and/or registration agents.
Section 3. Minimum Capital for Credit Risk.
3.1. Requirement.
3.2. Exclusions.
3.3. Computation of included concepts.
3.4. Definition of retail portfolio.
3.5. Risk weightings.
3.6. Treatment of securitizations.
3.7. Credit conversion factors (CCF).
3.8. Capital requirement for counterparty credit risk for failed DvP and non-DvP operations.
3.9. Capital requirement for counterparty credit risk in OTC derivative operations.
Section 4. Risk weighting table.
Section 5. Credit risk coverage.
5.1. General characteristics.
5.2. Treatment of assets admitted as collateral.
5.3. Treatment of personal guarantees (and counter-guarantees) and credit derivatives.
5.4. Maturity mismatch.
Section 6. Minimum Capital for Market Risk.
6.1. Requirement.
6.2. Value at Risk of the domestic asset portfolio.
6.3. Value at Risk of the foreign asset portfolio.
6.4. Value at Risk of foreign currency positions.
6.5. Definitions and values.
6.6. Computation.
6.7. Responsibilities.
6.8. Sanctions.

B.C.R.A. CODIFIED TEXT OF REGULATIONS ON
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-Index
Section 7. Minimum Capital for Operational Risk.
7.1. Requirement.
7.2. New entities.
Section 8. Computable Net Worth.
8.1. Determination.
8.2. Computable concepts.
8.3. Criteria related to computable concepts.
8.4. Deductible concepts.
8.5. Limits.
8.6. Capital contributions.
8.7. Procedure.
Section 9. Bases for compliance with regulations.
9.1. Individual basis.
9.2. Consolidated basis.
Section 10. Transitional provisions.
Correlation table.

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1.1. Requirement.
The minimum capital requirement that financial entities must have integrated by the last day of each month shall be equivalent to the highest value resulting from the comparison between the basic requirement and the sum of those determined by credit risk, market risk -VaRp requirement for positions on the last day of the month for included assets- and operational risk.

1.2. Increase in requirement for custody and/or registration agent functions.

1.2.1. Custody function for securities representing investments of the Sustainability Guarantee Fund (FGS) of the Argentine Integrated Pension System.
Commercial banks must register an excess of computable net worth relative to the minimum capital requirement equivalent to 0.25% of the value of securities in custody, which must be invested in national public securities or monetary regulation instruments of the Central Bank of the Argentine Republic or other destinations authorized by this Institution, provided they have regular quotation on the stock exchanges and markets where they trade, and be pledged in favor of said Institution to respond to potential defaults.

Securities or other admitted instruments pledged must be deposited in a special account opened for this purpose at the Securities Depository S.A. in the name of the entity and to the order of the Central Bank of the Argentine Republic.

The amount to be invested in securities or other admitted instruments must be determined based on balances at the close of each month, and the deposit must be made in the aforementioned account within the next 72 business hours, informing the Credit Management of the Central Bank within the same term under oath.

This requirement shall not apply when dealing with public banks whose operations are guaranteed by the National, provincial, municipal governments, or the Autonomous City of Buenos Aires.

1.2.2. Registration agent function for written mortgage letters.
Commercial banks must observe the regulations contained in point 1.2.1., with the exception that the 0.25% excess shall be calculated on the value of registered written mortgage letters, considered at the net value of effective amortizations.

1.2.3. Performance of both functions.
The determination of the increase in the minimum capital requirement shall be made by applying the fixed percentage to the sum of the amounts corresponding to securities in custody and registered written mortgage letters, considered at the net value of effective amortizations.

1.3. Integration.
For the purpose of determining compliance with the minimum capital requirement, the integration to be considered shall be the computable net worth.

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3.1. Requirement.
It shall be determined by applying the following expression:

CRC = k x [0,08 x (APRc + no DvP) + DvP + RCD] + INC + IP

where:

CRC: capital requirement for credit risk. k: factor linked to the rating assigned to the entity according to the evaluation carried out by the Superintendence of Financial and Exchange Entities, taking into account the following scale:

Assigned Rating Value of “k”
1 1
2 1.03
3 1.08
4 1.13
5 1.19

For this effect, the last rating reported for the calculation of the requirement to be integrated by the third month following that in which the notification takes place shall be considered. Until communicated, the value of “k” shall be equal to 1.03.

APRc: assets weighted by credit risk, determined by the sum of the values obtained after applying the following expression:

A x p + PFB x CCF x p

where:

A: computable assets/exposures.
PFB: computable concepts not recorded in the balance sheet balances (“off-balance sheet items”), whether or not accounted for in off-balance sheet accounts.
CCF: credit conversion factor. p: risk weighting, as a decimal.

no DvP: operations without delivery versus payment. Amount determined by the sum of the values obtained after applying the corresponding risk weighting (p) to the included operations as provided in point 3.8.

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DvP: failed delivery versus payment operations (for the purposes of these regulations, these include failed payment versus payment -PvP- operations). Amount determined by the sum of the values obtained by multiplying the current positive exposure by the applicable capital requirement established in point 3.8.

RCD: requirement for counterparty credit risk in over-the-counter (“OTC”) derivative operations, determined in accordance with point 3.9.

INC: increase for the following excesses:

in the report on immobilized assets and other concepts (Section 4. of the respective regulation);
to the limits established in the regulations on “Fragmentation of credit risk” (Section 5. and point 8.2. of Section 8.); and
to the credit grading limits (Section 3. of the respective regulation).

In this matter, the provisions contained in Section 2. of the regulations on “Non-compliance with minimum capital and technical ratios. Applicable criteria” shall apply, unless the provisions of Section 3. of those regulations apply.

The credit exposure resulting from the following shall also be computed in this expression:
i) the sum of positions not covered by contracts to hedge price variations of basic products -“commodities”-. Uncovered positions are those sold to customers that do not correspond to the hedges acquired by the financial entity, regardless of the underlying and/or the customer, ii) the use of credit quotas expanded as referred to in points 5.3.1.1. ii), 5.3.4.1. iii) and 5.3.4.2. iii) of Section 5. of the regulations on “Fragmentation of credit risk” (considering, where applicable, the provisions of point 11.1. of Section 11. of the cited regulations) regarding the financial assistance granted and/or holdings of debt instruments of financial trusts or fiduciary funds as referred to in point 5.1. of Section 5. of the regulations on “Financing to the non-financial public sector” and point 3.2.4. of Section 3. of the cited regulation, computed according to the following schedule, which shall operate from the time the works have begun to be used economically or the equipment generates income for the trust or fiduciary fund through tariffs, fees, charges, or other similar concepts.

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Computation as “INC” of the use of the expanded quota -as a % of such use- From the 25 First month 50 Seventh month 100 Thirteenth month

IP: increase due to the expansion of the general limit of the global net negative foreign currency position, in accordance with the provisions contained in point 2.1. of Section 2. of the regulations on “Global net foreign currency position”.

The non-financial public sector cited in these regulations is that defined in Section 1. of the regulations on “Financing to the non-financial public sector”.

3.2. Exclusions.

3.2.1. Guarantees granted in favor of the Central Bank of the Argentine Republic and direct obligations.

3.2.2. Concepts to be deducted for the purpose of calculating computable net worth.

3.2.3. Financing, guarantees, bonds, and other liabilities granted by local branches and subsidiaries of foreign financial entities, on behalf and order of their head office or their branches in other countries or the controlling entity, provided the following requirements are met:

3.2.3.1. The regulations of the country where the head office or controlling entity is located, the latter defined according to the provisions in force in that jurisdiction, must cover consolidated basis supervision of the local branches or subsidiaries.

3.2.3.2. The entity must have an international risk rating included in the “investment grade” category, granted by one of the rating agencies admitted by the regulations on “Evaluation of financial entities”.

3.2.3.3. In the case of financing, these must be attended to by the local branches or subsidiaries only with funds from lines assigned to them by the aforementioned foreign intermediaries.

If the assistance is granted in a currency different from that of the foreign resources, the local entity may not assume the exchange rate risk.

3.2.3.4. In the case of guarantees granted locally, there must be counter-guarantees extended by the head office or its branches in other countries or by the foreign controlling entity, the effectiveness of which operates unrestricted upon simple request of the local branch or subsidiary and immediately upon its eventual execution by the beneficiary.

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3.3. Computation of included concepts.

3.3.1. Individual and consolidated monthly basis.
The included concepts -except those mentioned in the following paragraph- shall be computed based on monthly averages of daily balances of the month prior to that corresponding to the determination of the requirement (capital, interest, premiums, updates -by the Reference Stabilization Coefficient “CER”- and quotation differences, as applicable, net of provisions for uncollectible risks and devaluation, and accumulated depreciation and amortization attributable to them and other regularizing accounts, without deducting 100% of the minimum required amount of the provision for uncollectible risk on the portfolio corresponding to debtors classified “in normal situation” -points 6.5.1. and 7.2.1. of the regulations on “Classification of debtors”- and financing covered with preferred guarantees “A”).

The operations referred to in points 3.8., 3.9. (DvP, non-DvP, and RCD) and swap operations -contemplated in Section 5.- shall be computed based on balances at the end of each month.

3.3.2. Quarterly consolidated basis.
Balances at the close of the quarter shall be considered, applying the corresponding provisions in other aspects.

3.4. Definition of retail portfolio.
Financing belonging to the retail portfolio -for the purpose of computing minimum capital for credit risk- shall be considered those that fully meet the following:

3.4.1. Orientation criterion.
The financing is granted to natural persons or micro, small, and medium-sized enterprises (MSMEs), in the latter case in accordance with the regulations on “Determination of micro, small, and medium-sized enterprise status”.

3.4.2. Product criterion.
Exposures must be instrumented as revolving financing, pawn loans, personal loans, financial leases, and/or financing to MSMEs. Revolving financing is defined as financing in which borrowers are authorized to make withdrawals and repayments within agreed limits in a credit line, and which include credit cards and overdrafts on current accounts.

Mortgage loans secured by residential housing, equity participations in MSMEs, and holdings of debt instruments issued by such companies are excluded.

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3.4.3. Concentration criterion.
The portfolio must be diversified. To this effect, the total exposure to each debtor shall not exceed 0.2% of the total retail portfolio of the entity, excluding financing with more than 90 days of arrears.

To calculate the limit defined in the preceding paragraph, the aforementioned percentage shall be applied to the balance of the retail portfolio at the end of the month prior to the month to which the daily balances whose average is used to determine the requirement refer. Debtors whose balance of computable exposures at the end of the latter month exceeds this limit shall not be computed within the retail portfolio.

3.4.4. Limit.
The maximum exposure to the same debtor shall not exceed the following amounts:

3.4.4.1. Natural persons -consumer portfolio$: $ 200,000;
3.4.4.2. MSMEs (including financing to natural persons for the development of their professional activity): $ 6,000,000.

For the purpose of considering credits incorporated through portfolio purchases in the retail portfolio, sufficient information must be available to verify compliance with the criteria and limits detailed above.

3.5. Risk weightings.

3.5.1. Values.
The values established in Section 4. shall apply.

3.5.2. Application criteria.

3.5.2.1. The term “exposure” covers all financing granted by the entity -in its various modalities, such as loans, holdings of securities, guarantees, bonds, and other contingent liabilities-, including those arising from operations carried out in securities, currency, and derivatives markets.

To determine the amount of financing included in the exposure to the non-financial public sector, regarding national public securities with published volatility, the net position criterion for securities as provided in the regulations on “Fragmentation of credit risk” shall be observed.

Exposures shall include debt balances and contingent commitments multiplied by the corresponding credit conversion factor (CCF).

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3.5.2.2. A central counterparty (CCP) is understood to be the clearinghouse that intervenes between the parties to a financial contract negotiated in one or more markets, acting as buyer for every seller and as seller for every buyer, thereby guaranteeing the future execution of the contracts in question.

3.5.2.3. For the purpose of recognizing credit risk coverage, the provisions of Section 5. shall be taken into account.

3.5.2.4. Risk weightings shall be applied per operation. If an exposure is understood to be subject to different specific risk weightings, the highest one shall be applied.

3.5.2.5. The highest individual weighting corresponding to the assets comprising common investment funds shall be applied to holdings of fund shares.

3.5.2.6. The treatment granted to exposure to the non-financial public sector shall not apply to operations with counterparties to which the Central Bank of the Argentine Republic has granted the treatment provided for non-financial private sector entities. In these cases, they shall be considered as exposures to non-financial private sector companies.

3.5.2.7. In the event that the client enters default with more than ninety days of arrears on at least one of their operations with the entity, the entire exposure of the client in the financial entity shall be subject to the weighting corresponding to loans with more than 90 days of arrears.

3.5.2.8. Credits incorporated through portfolio purchases shall have the same treatment as credits originated by the entity itself, provided that the corresponding conditions are met.

3.5.2.9. Exposures denominated in foreign currency but whose service collection is made in pesos -“dollar linked”- shall be computed as those denominated in national currency.

3.5.2.10. For the purpose of verifying the maximum 30% ratio provided in point 4.7.1. of Section 4., the installments of all financing of the financial entity that have periodic amortization must be taken into account, excluding installments of credits from other entities.

Consequently, the margins agreed for overdrafts on current accounts and credit card purchase limits (in both cases, both the used and available limits), as well as pre-arranged personal loans -to the extent that they have not yet been formalized or disbursed to the client- shall not form part of the numerator of the installment/income ratio as they do not have periodic amortization. However, installments that the client has for financed purchases within the credit card system shall be considered within the concept “installments”.

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3.6. Treatment of securitizations.
A "securitization position" is defined as exposure to a securitization (or re-securitization), whether traditional or synthetic, or to a structure with similar characteristics.
Exposure to the risks of a securitization may arise, among others, from the following concepts: holding securities issued within the framework of the securitization - that is, debt securities and/or participation certificates, such as Asset-Backed Securities ("ABSs") and Mortgage-Backed Securities ("MBSs") -; credit enhancements, liquidity facilities, interest rate or currency swaps, and credit derivatives. Securitization positions in the non-financial public sector are excluded, which will receive the treatment provided for in point 4.2 of Section 4.

3.6.1. Concepts.

3.6.1.1. Traditional securitization: is a structure in which cash flows from a set of underlying exposures are used to service at least two stratified risk positions - or tranches - with different degrees of credit risk or subordination.
The subordination of the tranches determines the distribution of losses during the validity period of the transaction.

3.6.1.2. Synthetic securitization: is a structure with at least two stratified risk positions - or tranches - that reflect different degrees of credit risk or subordination, in which the credit risk of a set of underlying exposures is transferred, in whole or in part, through the use of credit derivatives or guarantees.

3.6.1.3. Re-securitization: is a structure in which the risk associated with a set of underlying exposures is segmented and at least one of them is an exposure to a securitization.

3.6.1.4. Credit enhancement: is a contractual agreement under which a financial entity retains or assumes a securitization position for the purpose of providing a certain degree of credit protection to the other parties involved in the transaction.

3.6.1.5. The underlying exposures of the securitization may include, among other concepts: loans, commitments assumed by the entity, securitization positions, negotiable obligations, and shares. The underlying set may include one or several exposures.

3.6.1.6. Early amortization clause: is a mechanism that, once activated, allows investors to obtain repayments before the initially fixed maturity of the issued securities. For capital requirement purposes, an early amortization clause will be considered controlled if it fully satisfies the following conditions:

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i) The financial entity has an adequate capital and liquidity plan to meet the early amortization. ii) Throughout the duration of the transaction, including the amortization period, there is the same proportional distribution of interest, capital, expenses, losses, and recoveries based on the relative participation of the financial entity and the investors in the amounts receivable at the beginning of each month. iii) The contract establishes an amortization period such that - if the mechanism is activated - it allows reimbursing or recognizing in a default situation at least 90% of the total outstanding debt at the start of the early amortization period. iv) The repayment is not more accelerated than what would be allowed by a linear amortization scheme during the amortization period referred to in item iii). An early amortization clause that does not satisfy these conditions will be considered uncontrolled.

3.6.1.7. Liquidity facility: is a contractual agreement under which a financial entity makes a credit line available to a securitization program to cover potential mismatches between the payments of the underlying exposures and the financial service of the securities issued within the framework of such securitization.

3.6.2. Originating financial entity.

3.6.2.1. An entity is an originator of a securitization if it meets any of the following conditions:
i) It originates the underlying exposures included in the securitization. ii) It sponsors a securitization in which the underlying exposures are acquired from third parties, that is, it manages or organizes the program, places the securities, or provides liquidity (as provided for in point 3.6.1.7.) and/or credit enhancements (point 3.6.1.4.).

3.6.2.2. When calculating risk-weighted assets, the originating entity may exclude the exposures subject to securitization only if all of the following operational requirements are met - having to calculate capital requirements for the securitization positions it retains -:
i) The credit risk associated with the securitized exposures has been transferred to one or more third parties.

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ii) The transferor entity does not maintain effective or indirect control (such as through a controlled company) over the transferred exposures. They have been isolated from the transferor for legal purposes such that they are beyond its reach and that of its creditors, even in cases of liquidation or bankruptcy. These conditions must be supported by a legal opinion. It is considered that the transferor maintains effective control over the transferred exposures if:
a) it can repurchase them for the purpose of realizing profits, or b) it is obligated to retain their risk.
The maintenance by the transferor of the administration of the underlying exposures does not imply indirect control over them. iii) The issued securities must not be obligations of the transferor. Consequently, investors who purchase the securities must only have rights against the underlying set of exposures. iv) The transfer must be made to a "Special Purpose Entity" ("SPE") and investors can encumber or alienate their securities without restriction. In the country, these programs will be implemented under the legal form of trust, in accordance with the current legal regulations on this matter - Law 24.441 -. v) The exclusion options must satisfy the conditions stipulated in point 3.6.4. vi) The securitization must not contain clauses by which:
a) the originator is obligated to alter the underlying exposures in order to improve their weighted average credit quality, unless this is achieved through their sale - at market prices - to unrelated third parties; b) the financial entity must increase its first-loss position - that is, its exposure to the tranche that absorbs losses first - or increase the credit enhancements provided, after the start of the transaction; or c) the yield payable to parties other than the originator, such as investors or third-party providers of credit enhancements, is increased in response to a deterioration in the credit quality of the underlying exposures.

3.6.3. Due diligence requirements.

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3.6.3.1. The entity holding the securitization position must understand at all times the characteristics of its risk, regardless of whether it is recorded on or off the balance sheet, as well as the risk characteristics of the underlying exposures to such position.

3.6.3.2. The entity must have access at all times to information on the payment behavior of the underlying exposures. This information must include, to the extent applicable according to the type of transaction:

type of exposure;
percentage of overdue financings (with details at 30, 60, 90 days, and the rest);
percentage of the initial underlying debt cancelled early;
financings under judicial management;
type of property - such as housing or commercial real estate -;
occupancy rate of real estate;
classification of debtors, according to the guidelines established in the regulations on "Classification of debtors";
average ratio of disbursed amount to property value ("LTV"); and
geographic and sectoral diversification.
In the case of re-securitizations, the entity must have - in addition to the information regarding the underlying securitizations, such as the name and credit quality of the issuer, the structure of each transaction and the underlying securities - information on the characteristics and performance of the underlying exposures to the corresponding securitizations.

3.6.3.3. The entity must understand all structural characteristics of the securitization programs to which it is exposed that may significantly affect its exposure, such as the contractual payment cascade ("waterfall") and credit or liquidity enhancements.
When any of these due diligence requirements are not met, the securitization position must be weighted at 1250%. If it is an originating entity, the provisions of point 3.6.5.4 must be considered.

3.6.4. Treatment of exclusion options.
An exclusion option ("clean-up call") is one that allows redeeming securitization positions before they have been cancelled by the debtors all the underlying exposures. In the case of traditional securitizations, this option is usually exercised through the repurchase of outstanding securitization positions, once the balance of the set of underlying exposures or outstanding securities falls below a certain level. The presence of an exclusion option will not generate any capital requirement as long as all of the following requirements are met:

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3.6.4.1. The exercise of such option is not mandatory, but is subject to the discretion of the originating entity.

3.6.4.2. The exclusion option is not structured with the aim of preventing investors and/or providers of credit enhancements from absorbing losses, nor with the objective of providing any other type of credit enhancement.

3.6.4.3. It can only be exercised when 10% or less of the original value of the underlying portfolio or the issued securities remains outstanding.
All securitization transactions that include an exclusion option that does not meet all the criteria indicated above will result in a capital requirement for the originating entity. In the case of traditional securitizations, the underlying exposures will be treated as if they were not securitized. In addition, the financial entity must deduct from the Common Equity Tier 1 (COn1) capital the total amount in concept of gain from sale resulting from the securitization transaction, in accordance with point 8.4.1.17 of Section 8. If an exclusion option, after being exercised, has served as a credit enhancement, it will be considered that the financial entity has provided implicit credit support - that is, not contemplated contractually - and will receive the treatment established in point 3.6.5.2.

3.6.5. Criteria to be observed in the calculation of the minimum capital requirement.

3.6.5.1. The entity must maintain the capital requirement corresponding to all its securitization positions, including those resulting from providing credit coverage to a securitization transaction, investment in debt securities and/or participation certificates, retention of a subordinated tranche, and extension of a liquidity facility or credit enhancement, as established in the following points. In the case of originating financial entities, repurchased securitization positions will have the same treatment as retained positions.

3.6.5.2. When the financial entity implicitly supports a securitization - that is, any direct or indirect credit support provided that does not result from its contractual obligations, such as the replacement of loans in place of delinquent underlying ones - it must maintain the capital required for all underlying exposures to that securitization as if they had not been securitized. In addition, it must report in the notes to the published financial statements:
i) that it has provided non-contractual credit support, and ii) the effect on its capital requirement.
Likewise, it must deduct from the Common Equity Tier 1 (COn1) capital the total amount in concept of gain from sale resulting from the securitization transaction, in accordance with point 8.4.1.17 of Section 8.

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3.6.5.3. The risk-weighted asset corresponding to a securitization position is calculated by multiplying the amount of the position by the corresponding risk weight.
In the case of off-balance sheet positions, a credit conversion factor (CCF) must be applied as provided in point 3.7.2., multiplying the resulting amount - that is, the credit equivalent - by the corresponding risk weight provided for in Section 4.

3.6.5.4. If it is an originating entity, the requirement resulting from a securitization position will not be greater than what it would be required to observe if the entity retained all its underlying exposures.

3.6.6. Senior securitization positions.
A senior securitization position is defined as the tranche of securities issued in the securitization transaction that stands first in priority for the purpose of receiving the corresponding payments. The entity holding or guaranteeing a senior position in a traditional securitization may apply the "look-through" treatment to determine the risk weight, provided that the composition of the underlying set of exposures is known at all times. Interest rate or currency swaps are not considered for the purpose of determining whether a position is senior when applying this treatment. In the look-through treatment, such senior position will receive the weighted average risk weight of the underlying exposures, subject to review by the Superintendence of Financial and Currency Entities. In the case where the financial entity cannot determine the risk weights of the underlying exposures, the senior position must be weighted at 1250%.

3.6.7. Second-loss or better positions in ABCP ("Asset Backed Commercial Paper") programs.
In securitizations where the issued securities have an original maturity of up to one year (ABCP program), positions that absorb losses in the second or subsequent instance - except those included in point 3.6.6 - are subject to the higher risk weight resulting from comparing the value of 100% and the highest risk weight corresponding to the underlying exposures of the securitization. This applies provided that all of the following requirements are met:

3.6.7.1. From an economic point of view, the first-loss position provides credit protection to the remaining positions, in an amount equivalent to the capital requirement that the underlying would generate.

3.6.7.2. From the evaluation performed by the financial entity, it is concluded that its credit risk is equivalent to investment grade.

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3.6.7.3. The financial entity does not retain the first-loss position.

3.6.8. Treatment of admissible liquidity facilities - agreements or liquidity lines -.
Admissible liquidity facilities are considered to be off-balance sheet securitization positions that satisfy all of the following requirements:

3.6.8.1. The documentation of the facility must clearly identify and establish the circumstances under which it can be drawn upon. It can only be used up to an amount whose total amortization - resulting from the liquidation of the underlying exposures and any credit enhancement - is probable. Furthermore, the facility must not cover any loss incurred in the underlying set of exposures before it has been drawn upon, nor be structured in such a way that there is certainty that it will be drawn upon.

3.6.8.2. The granting of the facility is subject to an evaluation of the quality of the assets that prevents it from being drawn upon to cover underlying exposures that are in default.

3.6.8.3. The facility cannot be drawn upon after all applicable credit enhancements have been exhausted.

3.6.8.4. The repayment of the facility must not be subordinated to the rights of any holder of program securities, nor be subject to deferrals or exemptions.
The maximum risk weight corresponding to the underlying exposures covered by the facility will be applied to the amount of the credit equivalent of the position - resulting from multiplying the amount of the facility or line by the corresponding CCF (point 3.7.2.1.) -.

3.6.9. Treatment of securitizations with early amortization clauses.
The originating financial entity must observe capital requirements for the participation of other investors when:

3.6.9.1. it sells exposures to a structure containing an early amortization clause; and

3.6.9.2. the sold exposures are of a revolving nature (according to the definition provided in point 3.4.2.).
In the case of securitization structures where the underlying set includes revolving and term exposures, the entity must apply the corresponding treatment for early amortization to the part of the underlying set containing revolving exposures. Entities must not observe capital requirements for early amortization clauses in any of the following circumstances:

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a) Structures with loan replacement where the underlying exposures are not revolving and the exercise of early amortization prevents the entity from incorporating new exposures. b) Transactions with revolving exposures containing early amortization clauses that replicate term structures - that is, the risk of the underlying facilities does not return to the entity -. c) Structures in which investors are fully exposed to future funding requirements by borrowers, even after an early amortization event has occurred. d) The early amortization clause only comes into force due to events unrelated to the securitized exposures or the originating entity, such as changes in tax regulations. The capital requirement for the participation of investors is determined by multiplying: (a) the amount of the investors' participation by (b) the corresponding CCF (as indicated in point 3.7.2.) and by (c) the risk weight corresponding to the underlying exposure that would apply if the exposures had not been securitized. The capital requirement for all securitization positions with early amortization clauses - held by the financial entity and third parties - is subject to the maximum established in point 3.6.5.4. In addition, financial entities must deduct from Common Equity Tier 1 (COn1) capital the total amount in concept of gain from sale resulting from the securitization transaction, in accordance with point 8.4.1.17 of Section 8.

3.6.10. Other securitization positions.
In all other cases, including synthetic securitizations, the total capital requirement for securitization positions is obtained by applying a risk weight of 1250%.

3.7. Credit Conversion Factors (CCF).

3.7.1. General items.
Off-balance sheet transactions - including commitments for financings and correspondent lines to entities abroad, guarantees granted, sureties on deferred payment checks, documentary credits and acceptances, documents rediscounted in other financial entities, and other credit agreements - will be converted into credit equivalents using the following credit conversion factors (CCF), applying then the risk weights established in Section 4. and taking into account, if applicable, the provisions established in Section 5.:

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Concept CCF

in % -
a) Direct credit substitutes, such as general guarantees of indebtedness -including “stand-by” letters of credit used as financial guarantees- and acceptances and endorsements with liability. 100 b) Contingent items related to customer commercial operations -such as those derived from guarantees of compliance with commercial obligations-. 50 c) Short-term commercial letters of credit -that is, with a residual term of up to one year- self-liquidating that cover the movement of goods -such as documentary credits guaranteed by the underlying documentation-. Both the issuing bank and the confirming bank must apply the CCF and weight the items based on the counterparty on whose behalf the risk is assumed. 20 d) Sales of assets with liability for the assignor (weighted according to the asset and not based on the counterparty). 100 e) Commitments to acquire assets not recorded in the balance sheet (weighted according to the asset and not based on the counterparty). 100 f) Short-term securities issuance lines (“Note issuance facility” -“NIF”-) and revolving securities subscription lines (“Revolving underwriting facility” -“RUF”-). 50 g) Other commitments with a contractual maturity of up to one year. 20 h) Other commitments with a contractual maturity of more than one year. 50 i) Commitments that can be cancelled discretely and unilaterally by the financial entity, or that are automatically cancelled in case of deterioration of the debtor's solvency. 0

3.7.2. Off-balance sheet items linked to securitization operations.

3.7.2.1. Admissible liquidity facilities (point 3.6.8.) and cash advances by the financial entity acting as payment agent.
Admissible liquidity facilities will receive a CCF of 50%, regardless of their maturity.

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Cash advance facilities provided by the financial entity acting as payment agent to ensure a continuous flow of payments to investors -to the extent that they can be cancelled discretely and unilaterally, have the right to full reimbursement of the advance granted, and that right has priority in collection over any other right on the flows generated by the underlying exposures- will receive a CCF of 0%.

Financial entities may offer a single securitization program various types of facilities that may be available under different circumstances. Given their different activation mechanisms, it may occur that facilities provided by a financial entity overlap and that the use of one facility prevents -in part- the use of another. In this case, it will not be necessary for the financial entity to maintain an additional capital requirement as a consequence of the overlap, but it must compute a single capital requirement for the position covered by overlapping facilities, attributing it to the facility with the highest CCF.

3.7.2.2. Controlled early amortization clauses.
For credit lines in the retail portfolio, a CCF of 40% or 90% will apply, depending on whether the credit line is non-committed or committed, respectively.

If the credit lines do not correspond to the retail portfolio, the CCF to be applied will be 90%.

A credit line is considered non-committed when it contains clauses that enable the entity to discretely and unilaterally cancel the possibility of using the respective margins.

3.7.2.3. Uncontrolled early amortization clauses.
The CCF to be applied to credit lines will be 100%.

3.7.2.4. Other securitization positions registered in off-balance sheet accounts.
Securitization positions registered in off-balance sheet accounts not covered by the previous points will receive a CCF of 100%.

3.8. Capital requirement for counterparty credit risk for failed and non-DvP operations.

In operations with securities, gold, or foreign currency pending settlement (as occurs in spot-to-be-settled operations), counterparty credit risk exposure arises from the date of the operation, regardless of when it is recorded or accounted for. Entities must develop, implement, and improve systems to adequately monitor the counterparty credit risk exposure arising from these operations and obtain information that allows intervention at the appropriate time.

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Operations conducted under the delivery versus payment (DvP) modality -which implies the simultaneous exchange of securities for cash- expose entities to the risk of loss due to positive current exposure -defined as the positive difference between the value of the operation at the agreed settlement price and its value at the current market price-.

Operations in which cash is delivered without receiving the corresponding counterparty (securities, gold, or foreign currency), or conversely, in which the agreed effects are delivered without the corresponding payment of cash -that is, non-DvP operations- expose entities to the risk of loss due to the total value of the cash paid or the effects delivered.

This point details the calculation of the capital requirement to cover both types of risk. This includes operations subject to daily valuation at market prices and daily margin replenishment carried out through regulated clearing houses and central counterparty entities (CCP). Securities financing operations (“Securities Financing Transactions” -SFT-) that have not been settled are not included.

3.8.1. Failed DvP operations.

When the consideration is not received within five business days from the settlement date, the capital requirement must be calculated by multiplying the positive current exposure at the end of the month of the operation by the corresponding factor, as indicated in the following table:

Business days after the agreed settlement date | Applicable capital requirement --- | --- Between 5 and 15 | 8% Between 16 and 30 | 50% Between 31 and 45 | 75% 46 or more | 100%

3.8.2. Non-DvP operations.

The financial entity that has made the payment/delivery will consider its exposure as a loan if, at the end of the day, it has not yet received the relevant counterparty, and must apply the weightings established in Section 4.

If by the fifth business day the agreed counterparty has not yet been finalized, the financial entity that has made the payment/delivery will assign a weighting of 1250% to the amount equivalent to the transferred value plus the replacement cost, if any. This treatment will apply as long as credit exposure exists for this concept.

3.9. Capital requirement for counterparty credit risk in OTC derivatives operations.

The requirement computed in this section -based on the Current Exposure Method (“CEM”)- applies only to OTC derivatives, as securities financing operations (“Securities Financing Transactions” -SFT-) -such as securities lending operations- whose value depends on market valuations and are commonly subject to margin agreements, are covered in Section 5.

3.9.1. Counterparty credit risk exposure.

Financial entities must calculate the current replacement cost by valuing contracts at market prices and adding a factor that reflects the potential future exposure over the remaining life of the contract, according to the following expression:

EAD = CR + EPF

where:
EAD: counterparty credit risk exposure.
CR: total replacement cost, resulting from the sum of the market value of all contracts with the counterparty with positive value -contracts with negative value are taken as null-.
EPF: potential future exposure, resulting from multiplying the nominal -notional- balance of each contract with the counterparty by the corresponding “factor”, which will depend on the type of instrument and its residual term, according to the following table:

Residual Term | Interest Rate | Foreign Currency and Gold | Equities | Precious Metals (except gold) | Other basic products (“commodities”) --- | --- | --- | --- | --- | --- Up to 1 year | 0% | 1% | 6% | 7% | 10% More than 1 year and up to 5 years | 0.5% | 5% | 8% | 7% | 12% More than 5 years | 1.5% | 7.5% | 10% | 8% | 15%

When calculating the EPF, the following criteria will be taken into consideration:
i) In the case of contracts with multiple principal exchanges -such as “commodities” “swaps”-, the factors must be multiplied by the number of remaining payments in the contract. ii) In the case of contracts where exposure is settled on defined payment dates and the terms are adjusted so that the market value of the contract is zero on those dates, the residual term will be the time remaining until the next adjustment date. If interest rate contracts with a residual term of more than one year meet the aforementioned criteria, the additional amount will be subject to a minimum of 0.5%.

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iii) “Forwards”, “swaps”, purchased options, and similar derivatives that do not correspond to any of the categories contemplated in the previous table will be considered as other basic products “commodities”. iv) In the case of interest rate “swaps” -exchange of flows- with both legs variable in the same currency, the EPF will not be calculated. The exposure will be valued exclusively based on its market price value. v) The factors must be multiplied by the effective notional amounts and not by the apparent amounts (for example, when the declared notional amount is covered or leveraged by the structure of the operation itself, financial entities must use the effective notional amount when determining the EPF). In the case of contracts that provide for the amortization of reference assets, the residual notional values must be considered. vi) In the case of single-name credit derivative operations, attributed based on the accounting valuation criterion to the trading portfolio, the EPF will be calculated applying the following factors -regardless of their residual term-:

Protection Buyer	Protection Seller
“Swap” Total Return	5%
“Admissible” Reference Obligation	5%
“Non-admissible” Reference Obligation	5%

The “admissible” category includes debt securities issued by the non-financial public sector, Multilateral Development Banks, and financial entities. vii) When the credit derivative is a first-to-default basket hedge operation, the factor will be determined by the obligation with the worst credit quality in the basket.

In the case of second-to-default and subsequent hedge operations, the underlying exposures will be assigned according to their credit quality -that is, the second worst credit quality will determine the factor corresponding to a second-to-default credit derivative-.

The EAD will be zero for credit derivatives acquired to cover an exposure in the investment portfolio or a counterparty credit risk exposure. It will also be zero for credit default “swaps” sold to which the financial entity assigns the treatment of guarantees granted in the investment portfolio, and which are therefore subject to a capital requirement for credit risk for the total notional.

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3.9.2. Counterparty credit risk coverage.

Financial entities may reduce the counterparty credit risk exposure as a result of the recognition of assets received as collateral, for which they must use the comprehensive method (point 5.2.3. of Section 5.). Under this method, the adjusted counterparty credit risk exposure (EAD*) will be determined according to the following expression:

EAD* = [EAD - C x (1 - Hc - Hfx)]

where:
EAD*: value of the credit risk exposure, adjusted by the value of the asset received as collateral.
C: market value of the asset received as collateral.
Hc: haircut corresponding to the asset received as collateral.
Hfx: haircut corresponding to the currency mismatch between the collateral and the guaranteed operation.

3.9.3. Credit valuation adjustment (CVA).

In addition to the default risk exposure determined in point 3.9.2., financial entities must observe a capital requirement for the risk of losses derived from valuing counterparty risk at market prices -losses known as “credit valuation adjustments”, CVA-.

Entities will not observe this capital requirement when it concerns securities financing operations -such as securities lending operations- and in operations concluded with a central counterparty entity (CCP).

The CVA capital requirement corresponding to all counterparties will be determined according to the following expression for a one-year risk horizon:

K(CVA) = 2.33 x [ (sum_i (w_i * M_i * EAD_i)) - (sum_i (w_i * M_i * B_i)) + (sum_i (w_ind * M_ind * B_ind)) ] / (sum_i (w_i * M_i * EAD_i) + sum_i (w_i * M_i * B_i) + sum_i (w_ind * M_ind * B_ind))

where:

w_i: weighting applicable to counterparty i, established at 0% for the non-financial public sector and Central Bank, and at 3% for the rest of the counterparties -except if it concerns foreign entities that are not “investment grade”, in which case a weighting of 10% will be applied-.

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EAD_i Total: default exposure of counterparty i -including the effect of collateral asset-, to whose value the discount factor (1-exp(-0.05 x M_i))/(0.05 x M_i) is applied.
B_i: notional value of the credit default “swaps” contracted -aggregated, if there is more than one exposure- that reference counterparty i, used to cover CVA risk, to whose amount the discount factor (1-exp(-0.05 x M_i Coverage)) / (0.05 x M_i Coverage) is applied.
B_ind: full notional value of one or more index “swaps” of credit default (“index CDS”) contracted, used to cover CVA risk, to whose amount the discount factor (1-exp(-0.05 x M_ind)) / (0.05 x M_ind) is applied.
w_ind: weighting applicable to coverage provided by index credit default “swaps”, established at 0% for the non-financial public sector and Central Bank, and at 3% for the rest of the counterparties -except if it concerns foreign entities that are not “investment grade”, in which case the weighting will be 10%-.
M_i: weighted average residual term (measured in years) of the notional amounts in transactions with counterparty i.
M_i Coverage: residual term (measured in years) of the hedging instrument with notional B_i (if there are several exposures, the amounts M_i Coverage x B_i must be summed).
M_ind: residual term (measured in years) of the index (“index CDS”) used as coverage. If there is more than one coverage position, it will be the weighted average residual term of the notional amounts.

3.9.4. EAD in force for a counterparty.

It is the greater value between zero and the EAD* with the counterparty, net of the credit valuation adjustments (CVA) corresponding to that counterparty that the entity has already attributed to results -that is, CVA charges-. This CVA loss is calculated without compensating for debit valuation adjustments (DVA) that may have been attributed to results. If the DVA has not been attributed to results separately from the CVA, when determining the current EAD*, the loss incurred by CVA net of DVA will be computed. This reduction of EAD* by incurred CVA losses does not apply for the determination of the capital requirement for CVA risk.

3.9.5. Calculation of the capital requirement.

The capital requirement for counterparty credit risk in OTC derivatives operations (RCD) will be equivalent to the sum of (i) the requirement corresponding to the current EAD -adjusted by collateral assets (current EAD*)- of all counterparties and (ii) the capital requirement for the credit valuation adjustment -K(CVA)- determined according to point 3.9.3.:

RCD = sum_i (0.08 x p_i x EAD*_i) + K(CVA)

where:
p_i: risk weighting of each counterparty i, as a decimal.
EAD*_i: current counterparty credit risk exposure i, adjusted by the value of the collateral asset.
K (CVA): capital required by the credit valuation adjustment.

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Concept	Weighting

in % -
4.1. Availability.
4.1.1. Cash in hand, in transit (when the financial entity assumes responsibility and risk of transfer) and in ATMs. 0
4.1.2. Current and special accounts at the Central Bank of the Argentine Republic and payment orders at the charge of the B.C.R.A. 0
4.1.3. Minted gold or bars of “good delivery”, counting in the latter case with the seal of any of the refiners, smelters, assayers, former assayers, and former smelters included in the list made known by the B.C.R.A. 0
4.1.4. Cash items that are in the process of being collected (checks and drafts for collection), cash in cash-in-transit companies, and cash in custody at financial entities. 20
4.2. Exposure to governments and central banks.
4.2.1. To the B.C.R.A. in pesos, when its source of funds is in that currency. 0
4.2.2. To the non-financial public sector in pesos, when its source of funds is in that currency. 0
4.2.3. To the non-financial public sector for operations contemplated in point 4.2.2. securitized. 0
4.2.4. To the non-financial public sector for financing granted to beneficiaries of social security or to public employees -in both cases with discount code-, to the extent that such operations are denominated in pesos, the source of funds is in that currency, and the installments do not exceed, at the time of the agreements, thirty percent (30%) of the borrower's income and that of the cohabiting family group. 0
4.2.5. To the non-financial public sector for operations contemplated in point 4.2.4. securitized. 0
4.2.6. To the non-financial public sector and the B.C.R.A. Others. 100
4.2.7. To other sovereign states (or their central banks) and other entities of the non-financial public sector of those states. 100
4.2.8. To the Bank for International Settlements, the International Monetary Fund, the European Central Bank, and the European Community. 0

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4.3. Exposure to Multilateral Development Banks (MDB).
4.3.1. Exposure to the following entities: International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), Asian Development Bank (ADB), African Development Bank (AFDB), European Bank for Reconstruction and Development (EBRD), Inter-American Development Bank (IDB), European Investment Bank (EIB), European Investment Fund (EIF), Nordic Investment Bank (NIB), Caribbean Development Bank (CDB), Islamic Development Bank (IDB), and Council of Europe Development Bank (CEB). 0
4.3.2. Others. 100
4.4. Exposure to domestic financial entities.
4.4.1. Exposures denominated in pesos -whose source of funds is in that currency- for operations whose original contractual term is up to 3 months. 20
4.4.2. Others. 100
4.5. Exposure to foreign financial entities. 100
4.6. Exposure to domestic and foreign companies and other legal entities -including exchange entities, insurers, stock exchanges, and domestic entities to which the non-financial private sector treatment is granted based on what is established in Section 1. of the regulations on “Financing to the non-financial public sector”-, except what is provided in point 4.12. 100
4.7. Exposures included in the retail portfolio.
4.7.1. Financing to individuals -when the total of installments for entity financing that have a periodic amortization system does not exceed, at the time of the agreements, thirty percent (30%) of the borrower's income and that of the cohabiting family group- and to Small and Medium-sized Enterprises (SMEs). 75
4.7.2. Others. 100
4.8. Exposures guaranteed by reciprocal guarantee societies or public guarantee funds registered in the registries authorized at the B.C.R.A. 50

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4.9. Mortgage-backed financings in first degree, and regardless of their degree of priority as long as the entity is the creditor in all degrees, on residential housing.
4.9.1. Unique, family, and permanent occupation.
4.9.1.1. Regarding the credit support that does not exceed 75% of the appraised value of such properties. 35
4.9.1.2. Regarding the amount that exceeds 75% of the appraised value of such properties. 100
The condition of unique, family, and permanent occupation housing must be evidenced in the terms stated in the loan contract or in the deed by which the mortgage guarantee was constituted.
4.9.2. Others.
4.9.2.1. Regarding the credit support that does not exceed 75% of the appraised value of such properties. 50
4.9.2.2. Regarding the amount that exceeds 75% of the appraised value of such properties. 100
4.10. Mortgage-backed financings in first degree, and regardless of their degree of priority as long as the entity is the creditor in all degrees, on assets other than residential housing.
4.10.1. Up to the amount equivalent to 50% of the market value of the property or 60% of the mortgage credit amount, whichever is lower. 50
4.10.2. Regarding the rest of the financing referred to in point 4.10.1. 100
4.11. Loans with more than 90 days of arrears.
4.11.1. Mortgage-backed financings on residential housing -unique, family, and permanent occupation-.
4.11.1.1. With specific provisions equal to or greater than 20% of the outstanding balance. 50
4.11.1.2. With specific provisions less than 20% of the outstanding balance. 100
4.11.2. Mortgage-backed financings on residential housing not covered in point 4.11.1.
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4.11.2.1. With specific provisions equal to or greater than 50% of the outstanding balance. 50
4.11.2.2. With specific provisions equal to or greater than 20% and less than 50% of the outstanding balance. 75
4.11.2.3. With specific provisions less than 20% of the outstanding balance. 125
4.11.3. Loans or tranches not covered by guarantees from Section 5., and mortgage-backed financings not covered in points 4.11.1. and 4.11.2.
4.11.3.1. With specific provisions less than 20% of the outstanding balance. 150
4.11.3.2. With specific provisions equal to or greater than 20% and less than 50% of the outstanding balance. 100
4.11.3.3. With specific provisions equal to or greater than 50% of the outstanding balance. 50
4.11.4. Part of the financing covered with admissible guarantees.
The provisions of Section 5 must be taken into account.
4.12. Equity participations in companies. 150
4.13. Securitization positions. The provisions of points 3.6. and 3.7.2. of Section 3 must be taken into account.
4.14. Unfailed cash operations to be settled. 0
4.15. Failed DvP and non-DvP operations. The provisions of point 3.8. of Section 3 must be taken into account.
4.16. Exposures to Central Counterparty Entities (CCP) -with the exception of cases contemplated in point 3.8. of Section 3.-. 0
4.17. Derivative operations not covered in point 4.16. The provisions of point 3.9. of Section 3 must be taken into account.
4.18. Other assets and/or off-balance sheet items. 100
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5.1. General characteristics.
For the purpose of calculating the capital requirement for credit risk, coverage provided by assets, personal guarantees, and credit derivatives that meet the requirements established in this section will be recognized. No credit exposure -including credits, securities, and contingent liabilities that give rise to securitization positions- in which credit risk coverage (CRC) recognized in this section is used -such as repurchase operations and securities-backed loans- will result in a capital requirement higher than that assigned to another identical operation that does not have such coverage. The methods for recognizing such coverage are as follows:
5.1.1. Simple or weight substitution method:

Mandatory for the calculation of personal guarantees and credit derivatives.
Optional for assets admitted as collateral for operations registered in the investment portfolio.
The investment portfolio is that registered at cost plus yield in accordance with the regulations on “Valuation of non-financial public sector debt instruments and monetary regulation instruments of the Central Bank of the Argentine Republic”.
5.1.2. Integral or exposure reduction method:
Mandatory for assets admitted as collateral for operations registered in the trading portfolio -such as OTC derivatives and repurchase operations (REPO agreements) included in said portfolio-.
The trading portfolio is that registered at fair market value in accordance with the regulations on “Valuation of non-financial public sector debt instruments and monetary regulation instruments of the Central Bank of the Argentine Republic”.
Optional for assets admitted as collateral for operations registered in the investment portfolio.
Entities must opt for a single method for assets admitted as collateral for operations registered in the investment portfolio and can only change the method used with 6 months' notice to the Superintendence of Financial and Exchange Entities. Documentation related to CRC must observe the current legal requirements in this matter -obligating all parties in all relevant jurisdictions-, and financial entities must perform the necessary monitoring to ensure compliance.
5.2. Treatment of assets admitted as collateral.
Admitted collateral assets are considered all assets included in points 5.2.2.1. and 5.2.3.1. -according to the adopted method-.
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5.2.1. General requirements.
5.2.1.1. The instrumentality of the guarantee must ensure that the entity has the right to liquidate or take possession of the asset legally and at all times in the event of default, insolvency, or the opening of bankruptcy, extrajudicial preventive agreement, or liquidation (or other event stipulated in the operation documentation) of the counterparty (and, when applicable, the custodian of the asset received as collateral). In addition, entities must comply with all necessary legal requirements to ensure their right to liquidate or take possession of the asset.
5.2.1.2. There must be no substantial positive correlation between the credit quality of the counterparty and the value of the collateral - for example, securities issued by the counterparty or an entity related to it are not admissible-.
5.2.1.3. Financial entities must have clear and robust procedures that ensure compliance with the necessary legal requirements to declare the counterparty's default and liquidate the collateral quickly.
5.2.1.4. When the asset received as collateral is held in custody, financial entities must adopt necessary measures to ensure that the custodian separates it from other assets, whether its own or third-party assets.
5.2.1.5. A capital requirement will be applied to financial entities located in any of the positions of an operation guaranteed with an asset -such as repurchase operations-, even when acting as an agent in the organization of the operation and guaranteeing to a client that a third party will fulfill its obligations.
5.2.2. Simple or weight substitution method.
With this method, when financial entities accept assets as collateral, the counterparty's risk weight is substituted -partially or totally- by the risk weight of the asset through which the exposure is covered -partially or totally-.
5.2.2.1. Admitted assets as collateral.
i) Cash deposited in the financial entity, as well as certificates of deposit -or similar instruments- issued by the financial entity itself. ii) Minted gold or bars of “good delivery”, counting in the latter case with the seal of one of the refiners, smelters, assayers, former assayers, and former smelters included in the list published by the B.C.R.A. iii) Securities issued by the non-financial public sector and monetary regulation instruments of the Central Bank, to which a risk weight of 0% corresponds. iv) Shares (and bonds convertible into shares) included in a main stock index. v) Investment fund shares, when:

their value is determined and published daily; and
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their investment is limited to the assets included in this point.
5.2.2.2. Application.
For the CRC to be recognized, the exposure must be covered throughout the contractual term and the asset received as collateral must be valued at market prices with a minimum frequency of monthly. The part of the exposure covered will receive the risk weight corresponding to the asset received as collateral -subject to a minimum of 20%-. The uncovered part will be subject to the weight corresponding to the type of exposure in question. The risk weight of the covered part of the exposure may be lower than 20% in the following cases:
i) Repurchase operations will be subject to a weight of 0% when the conditions provided for in point 5.2.3.3. are met. ii) Repurchase operations in which the counterparty is not an essential market participant but which meet the remaining conditions established in point 5.2.3.3., will be subject to a weight of 10%. iii) OTC derivative operations subject to daily valuation at market prices and without currency mismatch with the asset received as collateral, will be subject to the following weights:
Guaranteed by cash: 0%.
Guaranteed by securities issued by the non-financial public sector to which a risk weight of 0% corresponds: 10%.
iv) Operations in which the exposure and the asset received as collateral are denominated in the same currency and the mentioned asset received is cash deposited in the financial entity, or securities issued by the non-financial public sector or monetary regulation instruments issued by the Central Bank of the Argentine Republic to which a risk weight of 0% corresponds and to whose market value a haircut of at least 20% has been applied, will be subject to a weight of 0%.
5.2.3. Integral or exposure reduction method.
With this method, financial entities must adjust the values of the exposure and the asset received as collateral, in order to take into account possible future variations in their market value. The resulting amount after performing this volatility adjustment will be higher in the case of the exposure -with the exception of cash loans- and lower in the case of the collateral -except when constituted by a deposit in the same currency as the exposure-. MINIMUM CAPITAL OF FINANCIAL ENTITIES B.C.R.A. Section 5. Credit Risk Coverage. Version: 8a. COMMUNICATION “A” 5580 Validity:
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When the exposure and the asset received as collateral are denominated in different currencies, the amount of the mentioned asset adjusted by volatility must also be adjusted -by applying a haircut- to consider possible future fluctuations in exchange rates. The risk-weighted asset will be calculated as the difference between the amount of the exposure -adjusted by volatility- and the value of the asset received as collateral -after applying the corresponding haircuts- multiplied by the counterparty's risk weight.
5.2.3.1. Admitted assets as collateral.
i) The assets admitted in the simple or weight substitution method (point 5.2.2.1.). ii) Shares (and bonds convertible into shares) that are included in a main stock index or, failing that, that trade on a recognized stock exchange. iii) Investment fund shares whose investment is limited to the shares detailed in subsection ii).
5.2.3.2. Application.
The value of the exposure adjusted by credit risk coverage, E*, is calculated as follows:
E* = Max {0, [E x (1 + He) - C x (1 - Hc - Hfx)]} where:
E*: value of the exposure after CRC.
E: value of the exposure, which will be market value if registered in the trading portfolio or cost plus yield if registered in the investment portfolio.
He: haircut applicable to the exposure (according to the following table).
C: value of the asset received as collateral at market price.
Hc: haircut applicable to the asset received (according to the following table).
Hfx: haircut for currency mismatch between the asset received as collateral and the exposure (according to point 5.3.5.3.).
Financial entities using this method must use the following haircuts, which imply: i) daily valuation at market prices, ii) daily margin replenishment, and iii) a maintenance period of 10 business days:
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Type of Asset Haircut
Shares in main stock indices and gold 15%
Other shares 25%
Investment funds The highest haircut applicable to any security that makes up the fund.
Cash deposited 0%
Securities issued by the non-financial public sector and monetary regulation instruments of the BCRA, with residual maturity:
≤ 1 year

1 year and ≤ 5 years
5 years
0.5%
2%
4%
For the application of the aforementioned haircuts, the following situations must also be taken into account:
i) In operations in which the financial entity lends non-admitted instruments -such as private debt securities- the haircut applied to the exposure will be 25%. ii) When the exposure and the asset received as collateral are denominated in different currencies, the haircut for exchange rate risk will be 8%, also based on a maintenance period of 10 business days and daily valuation at market prices. In the case of repurchase operations, other operations carried out in the capital markets -such as with OTC derivatives and margin financing- and loans guaranteed with securities, the haircut will depend on: i) the frequency of revaluation and margin replenishment and ii) the minimum maintenance period. For these operations, the minimum maintenance period will be established as follows:
Type of Operation Condition
Minimum Maintenance Period (TM)
Repurchase operations Daily margin replenishment 5 business days Other operations carried out in the capital markets Daily margin replenishment 10 business days Loans guaranteed with securities Daily revaluation 20 business days MINIMUM CAPITAL OF FINANCIAL ENTITIES B.C.R.A. Section 5. Credit Risk Coverage. Version: 10a. COMMUNICATION “A” 5580 Validity:
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When the maintenance period (TM) or the period elapsed between margin replenishments or market price valuations differs from those established in the preceding table, the haircuts will be modified using the following formula:
H = H10 ^ ((TM + NR - 10) / 10) where:
H: haircut.
H10: standard haircut based on a period of 10 business days -according to the type of instrument-.
NR: number of business days between two consecutive margin replenishments or between two consecutive asset revaluations, as applicable.
TM: minimum maintenance period -according to the type of operation-.
5.2.3.3. Repurchase operations eligible for a null haircut (0%).
Repurchase operations in which the counterparty is an essential market participant and additionally meet all of the following conditions may receive a null haircut:
i) The exposure and the asset received as collateral consist of cash or securities issued by the non-financial public sector subject to a risk weight of 0%. ii) The exposure and the asset received as collateral are denominated in the same currency. iii) The term of the operation is one business day or the exposure and the asset received as collateral are valued daily at market prices and are subject to daily margin replenishment. iv) When one of the parties fails to replenish margins, the time required between the last market price valuation prior to default and the liquidation of the asset cannot exceed four business days. v) The operation is settled through a system previously verified for this type of operations. vi) The operation documentation is the standard documentation for repurchase operations with the securities in question. vii) The operation documentation contemplates that, in the event that one of the parties fails to deliver cash or securities or to replenish the margin or any other obligation, the operation will be immediately cancellable. MINIMUM CAPITAL OF FINANCIAL ENTITIES B.C.R.A. Section 5. Credit Risk Coverage. Version: 5a. COMMUNICATION “A” 5580 Validity:
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viii) In the event of any default, the financial entity retains the unrestricted and legally enforceable right to immediately take possession of the asset and liquidate it to collect its claims. For these purposes, the following are considered essential market participants:

Non-financial public sector and Central Bank.
Financial entities.
Investment funds, when their regulation establishes capital requirements or leverage limits.
Central Counterparty Entities (CCP).
5.3. Treatment of personal guarantees (and counter-guarantees) and credit derivatives.
5.3.1. Common operational requirements.
i) It must represent a direct credit right against the provider of the protection and explicitly refer to specific exposures, so that the scope of the coverage is clearly and precisely defined. Unless default by the buyer of the protection of a debt derived from the credit protection contract, such contract must be irrevocable, and may not contain any other clause that allows the provider of protection to unilaterally cancel the credit coverage or increase its cost in the event of deterioration of the credit quality of the covered exposure. ii) It must be unconditional: the protection contract must not contain any clause outside the direct control of the financial entity that allows the provider of protection to be exempt from paying promptly in the event that the original counterparty defaults on what is owed.
5.3.2. Specific operational requirements for personal guarantees (and counter-guarantees) -such as sureties and guarantees-.
i) In the event of default by the counterparty, the financial entity can take timely action against the guarantor with respect to pending payments according to the documentation governing the operation. The guarantor can make a single payment covering the total amount contemplated in the documentation, or assume the future payment of the counterparty's obligations covered by the guarantee. The financial entity must have the right to receive any of these payments from the guarantor without having to initiate legal action against the counterparty to pay its debts. ii) The guarantee is an explicitly documented obligation assumed by the guarantor. MINIMUM CAPITAL OF FINANCIAL ENTITIES B.C.R.A. Section 5. Credit Risk Coverage. Version: 9a. COMMUNICATION “A” 5580 Validity:
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iii) The guarantor covers any payment that the debtor is obligated to make under the documentation governing the operation, such as the notional amount, margin requirements, etc., except when the guarantee covers only the principal, in which case it is considered that the interest and other uncovered payments are not guaranteed.

5.3.3. Specific operational requirements for credit derivatives.

5.3.3.1. Credit events specified by the contracting parties must include, at a minimum: i) default on the payment of amounts due according to the terms of the underlying obligation that are in force at the time such default occurs; ii) the opening of preventive bankruptcy proceedings, extrajudicial settlement agreement, bankruptcy, insolvency, or the debtor's inability to meet its debts, or its default or the written acceptance of its general inability to pay when due - as well as similar events; and iii) restructuring of the underlying obligation involving the forgiveness or deferral of the payment of principal, interest, and/or commissions, and implying a loss.

5.3.3.2. It will be admitted that the credit derivative covers obligations that do not include the underlying obligation, i.e., that there is a mismatch between the latter and the reference obligation of the credit derivative - obligation used for the purpose of determining the amount of cash to be settled or the obligation to be delivered - provided that: i) the reference obligation is of similar or lower category than the underlying obligation; ii) both are issued by the same debtor; and iii) there are legally enforceable cross-default or cross-acceleration clauses.

5.3.3.3. The validity period of the credit derivative may not be shorter than any grace period necessary to determine that the underlying obligation has effectively been breached due to its default.

5.3.3.4. Credit derivatives that allow for cash settlement will be recognized to the extent that there is a robust valuation process that allows the loss to be estimated reliably. It will be necessary to establish with precision the period during which valuations of the underlying obligation can be obtained after the credit event. If the reference obligation specified in the credit derivative, for the purpose of cash settlement of the hedge, is different from the underlying obligation, the provisions of point 5.3.3.2 shall apply.

5.3.3.5. If, in order to proceed with the settlement of credit protection, it is necessary for the buyer of the protection to transfer the underlying obligation to the provider of the protection, the terms of the underlying obligation must provide that the necessary consent to carry out such transfer cannot be refused without valid reason.

5.3.3.6. The parties responsible for determining whether a credit event occurred must be clearly identified. This responsibility does not rest solely with the seller of protection, but the buyer may inform the seller about the occurrence of a credit event.

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5.3.3.7. A mismatch between the underlying obligation and the obligation used for the purpose of determining whether a credit event has occurred is permitted provided that: i) the latter is of similar or lower category than the underlying obligation; ii) both obligations are issued by the same debtor; and iii) there are legally enforceable cross-default or cross-acceleration clauses. When the restructuring of the underlying obligation is not contemplated by the credit derivative, but the requirements included in points 5.3.3.1 to 5.3.3.7 are met, partial recognition of the credit derivative will be allowed. If the amount of the credit derivative is less than or equal to that of the underlying obligation, up to 60% of the value of the coverage may be counted. If the amount of the credit derivative is greater than that of the underlying obligation, coverage may be counted up to 60% of the value of the underlying obligation.

Only credit default swaps and total return swaps that provide credit protection equivalent to guarantees are recognized, with the following exception: when a financial entity purchases credit protection through a total return swap and accounts for the net payments received under the swap as net income, but does not account for the impairment in the value of the protected asset, the credit protection will not be recognized.

5.3.4. Admissible guarantors (and counter-guarantors) and credit protection providers.
When guarantees or credit derivatives are direct, explicit, irrevocable, and unconditional, credit protection provided by the following entities will be recognized, when their risk weight is lower than that of the counterparty:

5.3.4.1. Non-financial public sector.

5.3.4.2. Financial entities.

5.3.4.3. Mutual guarantee societies and public guarantee funds, registered in the registries authorized by the Central Bank of the Argentine Republic.

5.3.5. Application.
A substitution method will be applied. Only guarantees issued - or protection provided, in the case of credit derivatives - by entities with a risk weight lower than that of the counterparty will entitle to a lower capital requirement. The uncovered portion will maintain the risk weight of the counterparty underlying the exposure, while the covered portion will be assigned the risk weight of the guarantor or protection provider, taking into account the following:

5.3.5.1. Proportional coverage.
When the guaranteed amount, or the amount for which credit protection is held, is less than the amount of the risk exposure, and to the extent that the guaranteed and unguaranteed parties have the same priority for collection - i.e., the financial entity and the guarantor share losses pro rata - it will be admitted to reduce the capital requirement proportionally. That is, the protected part of the exposure will receive the treatment applicable to admissible guarantees/credit derivatives, and the rest will be considered as uncovered.

5.3.5.2. Deductibles.
The deductibles below which no compensation will be received in case of loss are equivalent to first-loss positions and must be weighted at 1250%.

5.3.5.3. Currency mismatch.
When the credit protection and the exposure are denominated in different currencies, the part of the exposure considered protected will be reduced by applying an Hfx haircut as follows:

GA = G x (1 – Hfx)

where:
GA: amount of credit protection adjusted for currency mismatch.
G: nominal amount of credit protection.
Hfx: haircut for currency mismatch between the credit protection and the exposure of 8% (assuming a maintenance period of 10 business days and daily valuation at market prices).

The haircut must be increased proportionally using the square root of time formula, depending on the frequency of valuation of the credit protection, as described in point 5.2.3.2.

5.4. Maturity mismatch.
Maturity mismatch occurs when the remaining term of the CRC is less than that of the underlying exposure; both terms must be measured conservatively.
When the simple method is used to treat assets received as collateral, maturity mismatch is not admitted.
For the remaining cases - personal guarantees (and counter-guarantees), credit derivatives, and collateral assets computed with the comprehensive method - if there is a maturity mismatch, the CRC with an original maturity term of less than one year or a residual term not greater than three months will not be recognized. When in these cases the computation of the CRC is feasible, the recognition will be partial, applying the following adjustment:

Pa = P x (t – 0,25) / (T – 0,25)

where:

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Pa: value of the CRC adjusted for maturity mismatch.
P: value of the credit protection adjusted for any applicable haircut. t: min (T, remaining term of the credit protection), expressed in years.
T: min (5, remaining term of the exposure), expressed in years.

In the case of securitization positions, when the covered positions have different remaining terms, the longest one must be used.

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results from the sale of securities included in Section 2 of the regulations on “Valuation of debt instruments of the non-financial public sector and monetary regulation of the Central Bank of the Argentine Republic”.

7.2. New entities.
The monthly minimum capital requirement for operational risk corresponding to the first month will be equivalent to 10% of the sum of the requirements determined by the credit and market risks - in this case, for the positions on the last day - of that month. From the second to the thirty-sixth month, the monthly requirement will be equivalent to 10% of the average of the requirements determined for the months elapsed until the calculation period - inclusive -, resulting from considering the risks mentioned in the preceding paragraph, according to the following expression:

C 10% n
(C VaR ) x n t 1
RC p,t
RO t t
∑=
+

Where for each month t:
RCt C: capital requirement for credit risk.
VaRp,t: capital requirement for market risk for the positions on the last day of month t. n: number of months elapsed until the month of calculation - inclusive - (2 ≤ n ≤ 36).
From the thirty-seventh month, the monthly requirement will be calculated according to what is provided in point 7.1.

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8.1. Determination.
The computable net worth of financial entities, for the purposes of the regulatory norms of the prescriptions of articles 30 and 32 of the Financial Entities Law and other provisions of the Central Bank of the Argentine Republic referring to that concept, will arise from the following expression:

RPC = PNb + PNc

where:
RPC: computable net worth - total regulatory capital.
PNb: basic net worth - level one capital.
PNb = COn1 - CDCOn1 + CAn1 - CDCAn1

where:
COn1: ordinary level one capital.
CDCOn1: concepts deductible from ordinary level one capital.
CAn1: additional level one capital.
CDCAn1: concepts deductible from additional level one capital.
PNc: complementary net worth - level two capital -, net of the corresponding deductions (CDPNc).

8.2. Computable concepts.

8.2.1. Ordinary level one capital (COn1).
It includes the following net worth items:

8.2.1.1. Share capital - excluding shares with preferential net worth -.

8.2.1.2. Non-capitalized contributions - excluding issuance premiums -.

8.2.1.3. Adjustments to net worth.

8.2.1.4. Retained earnings - excluding the special reserve for debt instruments -.

8.2.1.5. Unassigned results. The positive result of the last closed fiscal year will be computed once the auditor's report is available.

8.2.1.6. Other results - positive and negative - under the following terms:

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i) 100% of the results recorded up to the last quarterly financial statement that has the auditor's report, corresponding to the last closed fiscal year and regarding which the auditor has not yet issued their opinion. ii) 100% of the results of the current fiscal year recorded at the close of the last quarterly financial statement, once it has the auditor's report. iii) 50% of the gains or 100% of the losses, from the last quarterly or annual financial statement that has the auditor's report or opinion. These percentages will be applied to the accumulated net balance calculated at the close of each month, as long as the provisions of the two previous subsections do not apply. iv) 100% of the losses not included in the financial statements, corresponding to the quantification of the facts and circumstances reported by the auditor, as provided in the Minimum Standards on external audits regarding the reports with the results of the limited reviews of the financial statements, at the close of each quarter.

For the purpose of computing 100% of the results recorded up to the last quarterly or annual balance, the respective financial statement with the auditor's report must be submitted to the BCRA on the date when the submission of the monthly balance is mandatory.

8.2.1.7. Issuance premiums resulting from instruments included in the COn1.
Additionally, in consolidation cases, it includes:

8.2.1.8. Minority interests. Ordinary shares issued by subsidiaries subject to consolidated supervision and held by third parties, which meet the criteria established in point 8.3.5.

The concepts cited in the preceding points will have the deductible concepts provided in point 8.4.1 and, if applicable, in point 8.4.2 subtracted.

8.2.2. Additional level one capital (CAn1).

8.2.2.1. Instruments issued by the financial entity that meet the requirements provided in point 8.3.2 and are not already included in the COn1.

8.2.2.2. Issuance premiums resulting from instruments included in the CA n1.
Additionally, in consolidation cases, it includes:

8.2.2.3. Instruments issued by subsidiaries subject to consolidated supervision held by third parties, which meet the criteria for inclusion in the CAn1 and are not included in the COn1, observing the criteria established in point 8.3.5.

The concepts cited in the preceding points will have the deductible concepts provided in point 8.4.2 subtracted, if applicable.

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8.2.3. Complementary net worth - level two capital - (PNc).
It includes the following concepts:

8.2.3.1. Instruments issued by the financial entity that observe the requirements provided in point 8.3.3 - not included in the PNb -.

8.2.3.2. Issuance premiums resulting from instruments included in the PNc.

8.2.3.3. Provisions for uncollectible risk on the portfolio corresponding to debtors classified as “in normal situation” (points 6.5.1. and 7.2.1. of the regulations on “Classification of debtors”) and on financings covered with preferred collateral “A”, not exceeding 1.25% of risk-weighted credit assets.

Additionally, in consolidation cases, it includes:

8.2.3.4. Instruments issued by subsidiaries subject to consolidated supervision held by third parties, which meet the criteria for inclusion in the PNc and are not included in the PNb, observing the criteria established in point 8.3.5.

The concepts cited in the preceding points will have the deductible concepts provided in point 8.4.2 subtracted, if applicable.

8.3. Criteria related to computable concepts.

8.3.1. Ordinary level one capital (COn1).
For a share to be considered within the CO n1, the financial entity must refrain from creating, upon its issuance, any expectation that the share will be repurchased, redeemed, or amortized, and the contractual terms must not contain any clause that could originate such an expectation.

8.3.2. The instruments included in the CAn1 must observe the following requirements:

8.3.2.1. Be fully subscribed and paid up.

8.3.2.2. Be subordinated to depositors, unsecured creditors, and subordinated debt of the financial entity.
They must provide that, in the event of the entity's bankruptcy and once the total debts with other creditors - including contractually subordinated debt - have been satisfied, the holders of debt instruments computable at this level of capital will have priority in the distribution of funds only and exclusively with respect to the shareholders - regardless of the class of shares -, with express waiver of any general or special privilege.

8.3.2.3. Not be secured or covered by any guarantee of the issuer or an affiliate, nor be subject to any other agreement that improves the legal or economic order of priority in collection in the event of the entity's bankruptcy.

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8.3.2.4. Do not provide for payment of any kind in terms of principal, except in the event of the entity's liquidation, when applicable. They may not have clauses of increasing graduated remuneration or other incentives for early amortization.

8.3.2.5. The financial entity may redeem them - after a minimum of five years from their issuance -, provided that:
i) it has authorization from the Superintendence of Financial and Exchange Entities prior to the exercise of the call option; ii) it refrains from generating expectations that it will exercise the call option; and iii) it replaces the instrument with regulatory capital of equal or greater quality and under conditions that are sustainable for its income generation capacity, or demonstrates that - once the call option is exercised - its RPC exceeds the minimum capital requirements by at least 20%.

8.3.2.6. Any capital restitution will require prior authorization from the Superintendence of Financial and Exchange Entities, and the financial entity must not have the expectation nor create it in the market that it will obtain such authorization.

8.3.2.7. Discretion in the payment of dividends/interest coupons:
i) the financial entity may - at all times and at its sole discretion - cancel payments in terms of dividends or interest; ii) the above stated in the previous subsection shall not constitute a breach nor impose restrictions on the financial entity, except in relation to dividend distributions to holders of ordinary shares.

8.3.2.8. The payment of dividends/coupons will be made from distributable items, under the terms of Section 3 of the regulations on “Distribution of results”.

8.3.2.9. Do not incorporate a dividend/coupon that is periodically adjusted based, in whole or in part, on the credit risk of the financial entity.

8.3.2.10. Have not been purchased by the financial entity - nor by any entity it controls or over which it exercises significant influence -.

8.3.2.11. Have not been purchased with the direct or indirect financing of the financial entity.

8.3.2.12. Do not possess characteristics that hinder recapitalization, such as requiring the financial entity to compensate the investor if a new instrument is issued at a lower price during a specified period of time.

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The instruments that are part of the liability must absorb losses - once a predetermined trigger event is reached - through:
i) their conversion into ordinary shares; or ii) a mechanism that assigns losses to the instrument.

8.3.3. The instruments included in the PNc must observe the following requirements:

8.3.3.1. Be fully subscribed and paid up.

8.3.3.2. Be subordinated to depositors and unsecured creditors of the financial entity.

8.3.3.3. Not be secured or covered by any guarantee of the issuer or an affiliate, nor be subject to any other agreement that improves the legal or economic order of priority in collection in the event of the entity's bankruptcy.

8.3.3.4. Maturity:
i) original maturity term not less than five years; ii) no clauses of increasing graduated remuneration or other incentives for early amortization; iii) from the beginning of each of the last five years of life of each issuance, the computable amount will be decreased by 20% of the nominal value issued.

8.3.3.5. The financial entity may redeem them - after a minimum of five years from their issuance - provided that:
i) it has authorization from the Superintendence of Financial and Exchange Entities prior to the exercise of the call option; ii) it refrains from generating expectations that it will exercise the call option; and iii) it replaces the instrument with regulatory capital of equal or greater quality and under conditions that are sustainable for its income generation capacity, or demonstrates that - once the call option is exercised - its RPC exceeds the minimum capital requirements by at least 20%.

8.3.3.6. The investor will not have any right to accelerate the return of future payments provided (income coupon or amortization), except in the event of bankruptcy or liquidation.

8.3.3.7. May not incorporate a dividend/coupon that is periodically adjusted based, in whole or in part, on the credit risk of the financial entity.

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8.3.3.8. Not have been purchased by the financial entity -nor by any entity it controls or over which it exercises significant influence.-
8.3.3.9. Not have been purchased with the direct or indirect financing of the financial entity.
8.3.4. Additional requirements that the instruments referred to in points 8.3.2. and 8.3.3. must observe to guarantee their loss absorption capacity.
8.3.4.1. Their terms and conditions must include a provision under which the instruments must absorb losses -through a write-down or by conversion into ordinary capital- in the event that any of the events foreseen in point 8.3.4.4. occur.
8.3.4.2. If there is compensation to holders of these instruments for the write-down carried out -as a consequence of the loss absorption- it must be carried out immediately and only with ordinary shares, in accordance with the applicable legislation.
8.3.4.3. The financial entity must have at all times the necessary authorizations to be able to immediately issue the corresponding amount of shares, in order to what is stipulated in the terms and conditions of the instrument, when any of the events referred to in point 8.3.4.4. occur.
8.3.4.4. Triggering events.
The circumstance that makes operative the provision referred to in point 8.3.4.1. will be that any of the following events occur:
i) when the solvency and/or liquidity of the financial entity is affected, the Central Bank of the Argentine Republic rejects the regularization and rehabilitation plan presented by it -article 34 of the Financial Entities Law- or revokes its authorization to operate -article 44 subsection c) of the Financial Entities Law- or authorizes its restructuring in defense of depositors -article 35 bis of the Financial Entities Law, first paragraph-, whichever occurs first; or ii) the decision to capitalize the financial entity with public funds -or an equivalent support measure provided by the Deposit Guarantee Insurance System-, within the framework of the application of article 35 bis of the Financial Entities Law due to its liquidity and solvency being affected. The issuance of new shares as a result of the occurrence of any of such events must take place prior to any capitalization with public funds -or equivalent support measure- referred to in subsection ii).
8.3.5. Minority interests -do not confer control- and other instruments countable as capital issued by subsidiaries subject to consolidated supervision held by third parties.

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8.3.5.1. Ordinary shares issued by subsidiaries subject to consolidated supervision.
A minority interest may be recognized in the CoC1 of the financial entity if the instrument originating it meets all requirements for its classification as ordinary shares for the purposes of the CCR. The amount to be recognized in the CoC1 of the entity will be the amount of the minority interest in the CoC1 of the subsidiary net of the CoC1 surplus of the subsidiary that corresponds to minority shareholders. The CoC1 surplus of the subsidiary is calculated as the CoC1 of the subsidiary net of the lesser of the following amounts:
i) its minimum CoC1 requirement plus its capital conservation margin; ii) the portion corresponding to the subsidiary of the minimum CoC1 requirement plus the capital conservation margin, both computed on a consolidated basis. The CoC1 surplus attributable to minority shareholders will result from multiplying the CoC1 surplus of the subsidiary -determined as indicated above- by the percentage of CoC1 held by minority shareholders.
8.3.5.2. CoC2 issued by subsidiaries subject to consolidated supervision.
Instruments held by third parties that make up the CoC2 of a subsidiary subject to consolidated supervision may be recognized in the CoC2 of the financial entity if they meet all requirements for their classification as CoC2 for the purposes of the CCR. The amount to be recognized in the CoC2 of the financial entity will be the amount of the minority interest in the CoC2 of the subsidiary net of the CoC2 surplus of the subsidiary that corresponds to minority investors. The CoC2 surplus of the subsidiary is calculated as the CoC2 of the subsidiary net of the lesser of the following amounts:
i) its minimum CoC2 requirement plus its capital conservation margin; ii) the portion corresponding to the subsidiary of the minimum CoC2 requirement plus the capital conservation margin, both computed on a consolidated basis. The CoC2 surplus attributable to minority investors will result from multiplying the CoC2 surplus of the subsidiary -determined as indicated above- by the percentage of CoC2 held by minority investors. The amount of this CoC2 that will be admissible as CoC1 excludes amounts recognized as CoC1 in accordance with point 8.3.5.1.

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8.3.5.3. Admissible capital in the CCR issued by subsidiaries subject to consolidated supervision.
Instruments held by third parties that make up the CCR of a subsidiary subject to consolidated supervision may be recognized in the CCR of the financial entity if they meet all requirements for their classification as CoC2 or CoC3. The amount to be recognized in the CCR of the financial entity will be the amount of the minority interest in the CCR of the subsidiary net of the CCR surplus of the subsidiary that corresponds to minority investors. The CCR surplus of the subsidiary is calculated as the CCR of the subsidiary net of the lesser of the following amounts:
i) its minimum CCR requirement plus its capital conservation margin; ii) the portion corresponding to the subsidiary of the minimum CCR requirement plus the capital conservation margin, both computed on a consolidated basis. The CCR surplus attributable to minority investors will result from multiplying the CCR surplus of the subsidiary -determined as indicated above- by the percentage of CCR held by minority investors. The amount of this CCR that will be admissible as CoC3 excludes amounts recognized in the CoC1 in accordance with point 8.3.5.1. and amounts recognized in the CoC1 in accordance with point 8.3.5.2.
8.4. Deductible items.
8.4.1. Deductible items from ordinary level one capital (CDCoC1).
8.4.1.1. Tax credits from the application of the minimum presumptive income tax -net of provisions for devaluation risk- that exceed 10% of the CoC2 corresponding to the previous month.
8.4.1.2. Balances in correspondent accounts with financial entities abroad that do not have an international risk rating included in the “investment grade” category, granted by any of the rating agencies admitted by the regulations on “Evaluation of financial entities”.
This deduction will be made for the highest balance recorded in each bank during the month to which the determination of the CCR corresponds.
To this end, balances in correspondent accounts recorded with respect to the following will not be deducted:
i) The head office of local branches of foreign banks or their branches and subsidiaries in other countries.

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ii) Foreign banks or other financial institutions that exercise control of local financial entities constituted as joint-stock companies. iii) Other foreign banks authorized to participate in the regimes of reciprocal payment and credit agreements to which the Central Bank of the Argentine Republic has adhered, as well as their branches and subsidiaries, even if they are not included in those agreements. iv) Branches and subsidiaries of local financial entities. v) Balances that, on a temporary and circumstantial basis, originate from customer operations, such as those related to foreign trade operations or other types of credit ordered by third parties that do not imply equity liability for the entity.
8.4.1.3. Credit instruments (securities, certificates of time deposits and others) that are not physically in the possession of the entity, unless their registration or custody of registration certificates or bearer securities is entrusted to:
i) Central Bank of the Argentine Republic, for operations channeled through the Public Liabilities and Financial Trusts Registration and Clearing Center (“CRyL”). ii) Caja de Valores S.A. iii) Clearstream, Euroclear and Depositary Trust Company (“DTC”). iv) Deutsche Bank, New York. In the event that deductible assets are maintained in accordance with this provision, the entity must record the existence of such items in a note to the quarterly and annual financial statements, quantifying the amount that is not admitted for the purposes of determining the CCR.
8.4.1.4. Securities issued by governments of foreign countries, whose international risk rating is lower than that assigned to national public securities of the Argentine Republic, and that do not have markets where they trade habitually for relevant values.
This deduction will be made for the amount of the highest balance recorded during the month to which the determination of the CCR corresponds.
To this end, mandatory investments that must be made by branches or subsidiaries -subject to consolidated supervision- of local financial entities due to requirements imposed by the monetary or supervisory authority of the country where they operate will not be considered.

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8.4.1.5. Securities and other debt instruments, contractually subordinated to other liabilities, issued by other financial entities.
This deduction will be made for the amount of the highest balance recorded during the month to which the determination of the CCR corresponds.
8.4.1.6. Participations linked to the application of the deferral of tax payments, incorporated until 19.2.99, or subsequently when they come from irrevocable subscription commitments instrumented until that date, from the month following the expiration of the legal period of unavailability or the lapse, whichever the reason, of the tax benefits, according to the pertinent legal and regulatory provisions.
8.4.1.7. Shareholders.
8.4.1.8. Real estate, regardless of the date of its incorporation into the equity, intended or not for the operation of the entity, whose accounting registration is not backed by the pertinent deed of transfer of ownership duly registered in the respective Real Estate Registry, except those acquired through judicial auction.
The deduction will be equivalent to 100% of the value of said assets from their incorporation into the equity, until the month prior to the regularization of that situation.
The Superintendence of Financial and Exchange Entities may dispose of exclusions in this matter, to the extent that they do not undermine the objective of the deduction.
8.4.1.9. Goodwill -including those contemplated in the valuation of significant investments in the capital of financial entities not subject to consolidated supervision-.
8.4.1.10. Organization and development expenses and other intangibles, net of respective accumulated amortization.
8.4.1.11. Pending posting items -Debit balances - Others.
8.4.1.12. Upon request made by the Superintendence of Financial and Exchange Entities and with effect from the date indicated in each case, financial entities must deduct the amounts of assets included, when from the elements made available to the acting inspectors it emerges that the accounting registrations made by the entities do not accurately reflect the economic and legal reality of the operations or that actions or schemes have been carried out to distort or disguise the true nature or scope of the operations.

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The impact on the CCR by applying the above will determine the obligation to verify the classification of the different regulations that use the aforementioned equity as a base, from the month in which the request has effect, and, if applicable, the resulting charges must be deposited within 10 business days, counted from the date of notification of the request. In the event of deposit outside the fixed term, pertinent interest for delay arising from the application of each infringed regulation must be paid.
8.4.1.13. Differences due to insufficiency in the constitution of the minimum provisions for uncollectible risk determined by the Superintendence of Financial and Exchange Entities, to the extent that they have not been accounted for, with effect at the close of the month following that in which the entity receives the notification referred to in the first paragraph of point 2.7. of Section 2. of the regulations on “Minimum provisions for uncollectible risk”.
8.4.1.14. Participations in companies whose corporate purpose is the development of the following activity:
i) Financial assistance through financial leasing operations of durable capital goods and real estate, acquired for that purpose (“leasing”) or on credits arising from sales (“factoring”). ii) Temporary acquisition of participations in companies to facilitate their development, with the aim of subsequently selling the holdings. Granting financing and advice in planning and direction to those companies. The computation will be made net of provisions for devaluation risk.
8.4.1.15. The excess over the limits for the encumbrance of assets in guarantee, as provided in Section 3. of the regulations on “Encumbrance of assets in guarantee”.
8.4.1.16. The highest balance of credit assistance granted in the month, when the advances foreseen in point 3.2.5. of Section 3. of the regulations on “Financing of the non-financial public sector” exceed the authorized limit and/or are not cancelled within the deadlines provided therein.
8.4.1.17. Gains from sales related to securitization operations, as appropriate in accordance with points 3.6.4., 3.6.5.2. and 3.6.9. of Section 3., and for operations of sale or assignment of portfolios with liability for the assignor.
This deduction will be computed to the extent that credit risk subsists and in the proportion in which the capital requirement for the underlying exposures or sold or assigned portfolio with liability is maintained.

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8.4.1.18. In the case of liabilities for derivative instruments accounted for at fair value, unrealized gains and losses due to variations in the credit risk of the financial entity. Valuation adjustments for own credit risk will be deducted (- or +, as appropriate); compensation of such adjustments with those from the counterparty's credit risk is not permitted.
8.4.1.19. Investments in the capital of financial entities subject to consolidated supervision.
i) Participations in financial entities, except when exemptions apply so that they are not deducted. ii) Participations in foreign financial entities.
In such cases, they will be net of provisions for devaluation risk and, when they are controlled financial entities and it is appropriate to apply what is provided in point 8.2.1.6. -subsection iii)-, of 50% of their gains in proportion to the respective participation.
8.4.2. Deductible items applicable, as appropriate, to the different capital levels.
8.4.2.1. Investments in instruments countable as regulatory capital of financial entities not subject to consolidated supervision, when the entity holds up to 10% of the ordinary share capital of the issuer.
Criteria:
i) Investments include direct, indirect and synthetic participations. For these purposes, indirect participation is understood as the investment of a financial entity in another entity or company not subject to consolidated supervision, which in turn has a participation in the capital of another financial entity or company that it does not consolidate with the first. Synthetic participation refers to the investment that a financial entity makes in an instrument whose value is directly related to the value of the capital of another financial entity or company not subject to consolidated supervision. ii) The net long position is included; that is, the gross long position minus the short position in the same underlying exposure, when it has the same duration as the long position or its residual life is at least one year. iii) Holdings of securities subscribed for placement within five business days may be excluded.

When the total of these participations in the capital of financial entities -which individually represent less than 10% of the CoC1 of each issuing financial entity- exceeds 10% of the CoC1 of the financial entity -net of the corresponding deductions-, the amount above this 10% must be deducted from each of the capital levels based on the following methodology:

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i) Amount to be deducted from CoC1: total excess over 10% multiplied by the proportion that CoC1 holdings represent over the total capital participations. ii) Amount to be deducted from CoC1: total excess over 10% multiplied by the proportion that CoC1 holdings represent over the total capital participations. iii) Amount to be deducted from CoC3: total excess over 10% multiplied by the proportion that CoC3 holdings represent over the total capital participations. If the financial entity lacks sufficient capital to make the deduction of a particular capital level, the remainder will be deducted from the immediately superior level. Amounts below the threshold, which are not deducted, are risk-weighted or considered for the computation of the market risk requirement, as appropriate.
8.4.2.2. Investments in instruments countable as regulatory capital of financial entities not subject to consolidated supervision, when the entity holds more than 10% of the ordinary share capital of the issuer.
Criteria:
i) Investments include direct, indirect and synthetic participations. ii) The net long position is included; that is, the gross long position minus the short position in the same underlying exposure, when it has the same duration as the long position or its residual life is at least one year. iii) Holdings of securities subscribed for placement within five business days may be excluded. The amount of these participations -taking into account the type of instrument in question- must be deducted from each of the corresponding capital levels of the financial entity. If the financial entity lacks sufficient capital to make the deduction of a particular capital level, the remainder will be deducted from the immediately superior level.
8.5. Limits.
With respect to the elements mentioned below (net of the corresponding deductible items), the following minimum limits must be observed:
8.5.1. CoC1: amount resulting from multiplying 4.5% by the RWA.

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8.5.2. PNb: amount resulting from multiplying 6% by the APR.
8.5.3. RPC: amount resulting from multiplying 8% by the APR.
Risk-weighted assets (APR) shall be considered as the amount resulting from multiplying by 12.5 the minimum capital requirement defined in point 1.1. of Section 1.
Failure to comply with any of these minimum limits shall be considered a failure to integrate minimum capital, corresponding to the application of what is provided for in point 1.4. of Section 1. of these rules and Section 1. of the rules on “Minimum Capital Shortfalls and Technical Ratios. Applicable Criteria”.

8.6. Capital Contributions.
For the purposes of all regulations related to capital, its integration and increase, including those referring to regularization and soundness plans and without prejudice to what is provided in point 1.1. of Section 1. of Chapter V of Circular CREFI - 2 (text according to Communication “A” 4510) regarding the negotiation of shares or irrevocable contributions for future capital increases, contributions must be made in cash. Exceptionally, with prior authorization from the Superintendence of Financial and Currency Entities, contributions may be admitted in:
8.6.1. national public securities;
8.6.2. monetary regulation instruments of the Central Bank;
8.6.3. deposits and other obligations arising from the entity's financial intermediation.
In the cases covered by points 8.6.1. and 8.6.2., contributions must be recorded at their market value. Instruments are understood to have market value when they have a habitual quotation on regulated stock exchanges and markets in the country or abroad where they are traded, with relevant transactions in whose amount, the eventual liquidation of holdings cannot significantly distort their quotation. In the cases of point 8.6.3., contributions must be recorded at their market value -with the scope defined in the previous paragraph- or, when dealing with financial entities that make a public offering of their shares, at the price set by the competent control authority of the corresponding market. Contributions of this type of instrument will not be admitted when the aforementioned conditions are not met. When dealing with deposits and other obligations arising from the financial entity's financial intermediation that do not have authorization to be traded in regulated secondary markets in the country or abroad, contributions will be admitted at their book value -capital, interest, adjustments, foreign exchange quotation differences, and, if applicable, issuance discounts-, in accordance with the rules of the Central Bank of the Argentine Republic. In the case of debt instruments computable as CAn1 or PNc, when admitting contributions, the provisions of point 8.3.4. must be taken into account.

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Under no circumstances shall the capitalization of debt imply a limitation or suspension of the preference right established in article 194 of the Commercial Companies Law, so the provisions of article 197 of said law shall not apply. The decision to capitalize the concepts indicated in points 8.6.1 to 8.6.3. by the Shareholders' Meeting (or equivalent authority) is “ad referéndum” of its approval by the Superintendence of Financial and Currency Entities or, in its case, by the Central Bank of the Argentine Republic -as provided in point 1.1. of Section 1. of Chapter V of Circular CREFI - 2-, a circumstance that must be exposed in a note to the accounting statements of the following periods -quarterly or annually, as applicable-, in the terms established by the Superintendence of Financial and Currency Entities. Until notification of the approval of the contributions has been received and to the extent that these have been accounted for, they shall be deducted from the respective component of the RPC of the financial entity. When the accounted contributions come from the capitalization of subordinated debt or instruments representing debt that may be considered -in whole or in part- as an integral part of the RPC, the treatment applicable in the matter of having remained registered accountably as liabilities shall be maintained.

8.7. Procedure.
The request for authorization of capital contributions with the instruments referred to in points 8.6.1. to 8.6.3. must be accompanied by a copy of the Shareholders' Meeting minutes (or equivalent authority) certified by a public notary, stating such decision and that, to adopt it, the Meeting had at its disposal the special report of the external auditor established for cases where the contribution includes the debt instruments indicated in the following paragraph. When dealing with capital contributions referred to in point 8.6.3., the debt instruments must be registered in the last annual or quarterly balance sheet, as applicable, immediately preceding the date of convening the relevant Meeting. Such accounting statement must have the intervention of the external auditor provided for each case according to the applicable rules in the matter and must have been previously presented before this Institution and be accompanied by a special report from said auditor, prepared in the terms specifically established in the Minimum Standards on External Audits issued by the Superintendence of Financial and Currency Entities.

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MINIMUM CAPITAL OF FINANCIAL ENTITIES B.C.R.A. Section 9. Bases for Observance of the Rules.
9.1. Individual Basis.
Financial entities (including their subsidiaries in the country and abroad) shall observe the rules on minimum capital on an individual basis.
9.2. Consolidated Basis.
Without prejudice to compliance on an individual basis, controlling financial entities subject to consolidated supervision shall observe the rules on minimum capital on a monthly consolidated basis and, additionally and independently, quarterly.

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10.5. For the purposes of determining computable equity responsibility, starting from 1.2.13, capital instruments that cease to meet the criteria to be considered additional level one capital (CAn1) or supplementary equity (PNc) in accordance with Section 8 shall be excluded.
For these purposes, while they maintain the conditions under which their inclusion in the RPC was admitted, the amount resulting from applying the methodology in force at that date to the book values of the instruments at the end of each month shall be computed. Their recognition as RPC shall be limited to 90% of the value thus obtained from that date, with this limit decreasing by 10 percentage points every twelve months. This limit shall be applied separately to each instrument -whether computed in CAn1 or in PNc-.

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B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE
ORDERED TEXT OF THE RULES ON
“MINIMUM CAPITAL OF FINANCIAL ENTITIES”

ORDERED TEXT	ORIGIN RULE
Section	Point	Paragraph	Com.	Cap./Annex	Point	Paragraph	OBSERVATIONS
1.1.	“A” 2136	1. 1º	According to Com. “A” 2859, 3558, 5272, 5369 and 5580.
1.2.1.	“A” 2237	b)	According to Com. “A” 2923 (point 3.1.2.3. of Section 3.), 4631, 5183, 5418 and “B” 9186.
1.2.2.	“A” 2923	3.	3.2.2.
1.2.3.	“A” 2923	3.	3.3.
1.3.	“A” 2136	2.	1º According to Com. “A” 2223.
1.4.1.	“A” 2136	3.1.	“A” 3171 According to Com. “A” 3959.
i)	“A” 2136	3.2.	2º According to Com. “A” 3959.
ii)	“A” 2136	3.2.4.	According to Com. “A” 2241 and 4771.
1.4.2.1.	iii)	“A” 414	LISOL-1	VI 6.1.	1.
1.4.2.2.	“A” 3171	According to Com. “A” 3959.
2.1.	“A” 2241	CREFI-2	I 1.3.1.	According to Com. “A” 4368, 4771, 5168, 5351 and 5355.
2.2.1.	“A” 2237	a)	According to Com. “A” 2923 (point 3.1.1.2. of Section 3.) and 5183.
2.2.2.	“A” 2923	3.	3.2.1.	According to Com. “A” 5183.
2.	2.2.3.	“A” 2923	3.	3.3.
3.1.	“A” 2136	1.	According to Com. “A” 2541, 2736, 2938, 3039, 3307, 3959, 4598, 4702 (incorporates clarification), 4741, 4742, 4961, 4996, 5180, 5369 (Annex I), 5580 and “B” 9745.
3.2.1.	“A” 2136	I	According to Com. “A” 2541 (annex, criteria, d, 2nd paragraph).
3.2.2.	“A” 2287	5.	According to Com. “A” 5369 (Annex I).
3.2.3.	“A” 2412	In the second paragraph of point 3.2.3.3. incorporates criterion not previously known in general. According to Com. “A” 3959 and 5369 (Annex I).
3.3.	“A” 2740	I	3.4.	According to Com. “A” 5369 (Annex I).
1°	“A” 2768	2.	According to Com. “A” 2948, 3911, 3925, 3959, 4180, 5369 (Annex I) and “B” 9074.
3.3.1.	2°	“A” 5369	I	According to Com. “A” 5580. Includes interpretative clarification.
3.3.2.	“A” 2227	único	5.2.2.	3°
3.4.	“A” 5369	I	último	“A” 5580	Includes interpretative clarification.
3.4.1.	“A” 5369	I	3.
3.4.2.	“A” 5369	I

ORDERED TEXT	ORIGIN RULE
Section	Point	Paragraph	Com.	Cap./Annex	Point	Paragraph	OBSERVATIONS
3.4.3.	1°	“A” 5369	I
2°	“A” 5580	Includes interpretative clarification.
3.4.4.	“A” 5369	I
3.5.1.	“A” 2136	1.1.	According to Com. “A” 5369 (Annex I).
1°	“A” 5369	I
2°	“A” 5580	Includes interpretative clarification.
3.5.2.1.	3°	“A” 5580	Includes interpretative clarification.
3.5.2.2.	“A” 5369	I
3.5.2.3.	“A” 5369	I	According to Com. “A” 5580.
3.5.2.4.	“A” 2136	I	According to Com. “A” 2541, annex, criteria, g), 5369 (Annex I) and 5580. Includes interpretative clarification.
3.5.2.5.	“A” 2136	I	According to Com. “A” 2541, annex, criteria, k) and 5369 (Annex I).
3.5.2.6.	“A” 5369	I
3.5.2.7.	“A” 5580	Includes interpretative clarification.
3.5.2.8.	“A” 5580	Includes interpretative clarification.
3.5.2.9.	“A” 5580	Includes interpretative clarification.
3.5.2.10.	“A” 5580	Includes interpretative clarification.
3.6.	“A” 5369	I
3.6.1.	“A” 5369	I
3.6.2.	“A” 5369	I
3.6.2.1.	“A” 5369	I	According to Com. “A” 5580.
3.6.3.	“A” 5369	I
último	“A” 5369	I	According to Com. “A” 5580.
3.6.4.	“A” 5369	I
3.6.5.	“A” 5369	I
3.6.6.	“A” 5369	I
3.6.7.	“A” 5369	I
3.6.8.	“A” 5369	I
3.6.9.	“A” 5369	I
3.6.9.2.	“A” 5369	I	According to Com. “A” 5580.
3.6.10.	“A” 5369	I
3.7.	“A” 5369	I
3.7.1.	“A” 5369	I
3.7.2.	“A” 5369	I
3.7.2.1.	“A” 5369	I	According to Com. “A” 5580.
3.8.	“A” 5369	I	According to Com. “A” 5580.
3.8.1.	“A” 5369	I
3.8.2.	“A” 5369	I
3.9.	“A” 5369	I
3.9.1.	“A” 5369	I
1° and 2°	“A” 5369	I	According to Com. “A” 5580.
3.9.2.	“A” 5369	I	According to Com. “A” 5580.
3.9.3.	“A” 5369	I
3°	“A” 5369	I	According to Com. “A” 5580.
3.9.4.	“A” 5369	I
3.	3.9.5.	“A” 5369	I	According to Com. “A” 5580.

SECTION	POINT	PARAGRAPH	COMM.	CAP./ANNEX
4.1.	“A” 5369	I
4.1.1.	“A” 5369	I
4.1.2.	“A” 5369	I
4.1.3.	“A” 5369	I
4.1.4.	“A” 5369	I
4.2.	“A” 5369	I
4.2.1.	“A” 5369	I	According to Com. “A” 5580.
4.2.2.	“A” 5369	I	According to Com. “A” 5580.
4.2.3.	“A” 5369	I
4.2.4.	“A” 5369	I
4.2.5.	“A” 5369	I
4.2.6.	“A” 5369
4.2.7.	“A” 5369	I
4.2.8.	“A” 5369	I
4.3.	“A” 5369	I
4.3.1.	“A” 5369	I
4.3.2.	“A” 5369	I
4.4.	“A” 5369	I
4.4.1.	“A” 5369	I
4.4.2.	“A” 5369	I
4.5.	“A” 5369	I
4.6.	“A” 5369	I	According to Com. “A” 5580. Includes interpretative clarification.
4.7.	“A” 5369	I
4.7.1.	“A” 5369	I	According to Com. “A” 5580. Includes interpretative clarification.
4.7.2.	“A” 5369	I
4.8.	“A” 5369	I
4.9.	“A” 5369	I
4.9.1.	“A” 5369	I
4.9.2.	“A” 5369	I
4.10.	“A” 5369	I
4.10.1.	“A” 5369	I
4.10.2.	“A” 5369	I
4.11.	“A” 5369	I
4.11.1.	“A” 5369	I
4.11.2.	“A” 5369	I
4.11.3.	“A” 5369	I
4.11.4.	“A” 5369	I
4.12.	“A” 5369	I
4.13.	“A” 5369	I
4.14.	“A” 5580	I	Includes interpretative clarification.
4.15.	“A” 5369	I
4.16.	“A” 5369	I
4.17.	“A” 5369	I
4.	4.18.	“A” 5369	I	According to Com. “A” 5580. Includes interpretative clarification.

SECTION	POINT	PARAGRAPH	COMM.	CAP./ANNEX	POINT
5.1.	“A” 5369	II
2°	“A” 5369	According to Com. “A” 5580.
5.1.1.	“A” 5369	II	According to Com. “A” 5580. Includes interpretative clarification.
5.1.2.	“A” 5369	II	According to Com. “A” 5580. Includes interpretative clarification.
5.2.	“A” 5369	II
5.2.1.	“A” 5369	II
5.2.2.	“A” 5369	II
5.2.2.2.	último	“A” 5369	II	According to Com. “A” 5580.
5.2.3.	“A” 5369	II
6°	“A” 5369	II	According to Com. “A” 5580.
5.2.3.1.	“A” 5369	II	According to Com. “A” 5580.
5.2.3.2.	“A” 5369	II	According to Com. “A” 5580.
5.2.3.3.	“A” 5369	II	According to Com. “A” 5580.
5.3.	“A” 5369	II
5.3.1.	“A” 5369	II
5.3.2.	“A” 5369	II
5.3.3.	“A” 5369	II
5.3.4.	“A” 5369	II
5.3.5.	“A” 5369	II	According to Com. “A” 5580.
5.	5.4.	“A” 5369	II	According to Com. “A” 5580.
6.1. and 6.2.	“A” 2461	único	I and II	According to Com. “A” 4172, 4741 and 5180.
6.3. and 6.4.	“A” 2461	único	I and II	According to Com. “A” 3959 and 4172.
6.5.	“A” 2461	único	I and II	According to Com. “A” 2736, 2768, 2948, 3959, 4172 and “B” 9074. The point 6.5.2. includes interpretative clarification.
6.6.	“A” 2461	único	III	According to Com. “A” 3161, 4172 and 5272.
6.7.	“A” 2461	único	VI	According to Com. “A” 4172.
6.	6.8.	“A” 2461	único	VII	According to Com. “A” 4172.
7.	7.1.	“A” 5272	2.
7.2.	“A” 5272	2.	According to Com. “A” 5369 and 5580.
8.1.	“A” 414	LISOL-1	VI 3.1.	1º	According to Com. “A” 2279, 2453, 2793, 2914, 3039, 4172 and 5369 (Annex I).
8.2.1.	“A” 414	LISOL-1	VI 3.1.1.	According to Com. “A” 2223, 2227, 4296, (point 2.), 4576 (point 1.), 4665 and 5369 (Annex I).
8.2.2.	“A” 5369	I
8.2.3.	“A” 414	LISOL-1	VI 3.1.2.	According to Com. “A” 2223, 2768, 2948, 4172, 4576 (point 3.), 4665, 4702, 5369 (Annex I) and “B” 9074.
8.3.	“A” 5369	I
8.3.1.	“A” 5369	I
8.	8.3.2.	“A” 4576	2.	According to Com. “A” 4591 (points 2.,3., 4. and 5.), 4665, 4782 and 5369 (Annex I).

SECTION	POINT	PARAGRAPH	COMM.	CAP./ANNEX
8.3.3.	“A” 414	LISOL-1	VI 3.1.2.2.	According to Com. “A” 2264, 4172, 4576 (points 4., 5., 6. and 8.), 4665, 4782 and 5369 (Annex I).
8.3.4.	“A” 5369	I
8.3.5.	“A” 5369	I
8.4.1.	“A” 5369	I
8.4.1.1.	“A” 4296	2.	According to Com. “A” 4576, 4665 and 5369 (Annex I).
“A” 2287	3.1. and 3.3.
8.4.1.2.	According to Com. “A” 2890, 4172 and 5093.
“A” 2287	3. último	According to Com. “A” 4172 and 5093.
8.4.1.3.	1º	“A” 2497	1.	According to Com. “A” 3621, 4172 and 5183.
último	“A” 2263	2.	According to Com. “A” 4172.
1º and último	8.4.1.4.	“A” 2287	3.2.	According to Com. “A” 4172.
2º	“A” 2474	Procedure rules on minimum capital requirement and integration (point 3.2.7.). Modified by Com. “A” 4172.
8.4.1.5.	“A” 2264	1.	According to Com. “A” 4172, 4576 (point 7.) and 5369 (Annex I).
8.4.1.6.	“A” 2863	3.	According to Com. “A” 4172.
8.4.1.7.	“A” 414	LISOL-1	VI 3.2.	According to Com. “A” 4172.
8.4.1.8.	“A” 2730	Includes interpretative clarification. According to Com. “A” 4172.
8.4.1.9.	“A” 2545	According to Com. “A” 4172 and 5369 (Annex I).
8.4.1.10.	“A” 414	LISOL-1	VI 3.2.	Modified by Com. “A” 986, 4172 and 5369 (Annex I).
8.4.1.11.	“A” 414	LISOL-1	VI 3.2.	According to Com. “A” 4172.
8.4.1.12.	“A” 2287	4.
“A” 2607	1.	According to Com. “A” 4172.
8.4.1.13.	“A” 2893	1.	According to Com. “A” 4172.
8.4.1.14.	“A” 3087	According to Com. “A” 4172 and 5369 (Annex I).
8.4.1.15.	“A” 4725	6.
8.4.1.16.	“A” 5069	2.
8.4.1.17.	“A” 5369	I
8.4.1.18.	“A” 5369	I
“A” 414	LISOL-1	VI 3.2.	According to Com. “A” 4172, 4539, 4665 and 5369 (Annex I).
8.	8.4.1.19.
“A” 1215	Specifications of the items of participations in financial entities not deductible to determine computable equity responsibility. According to Com. “A” 4172.

SECTION	POINT	PARAGRAPH	COMM.	CAP./ANNEX	POINT
8.4.2.	“A” 5369	I
8.4.2.2.	“A” 5369	I	According to Com. “A” 5580.
8.5.	“A” 5369	I
8.6.	“A” 414	LISOL-1	VI 3.4.	According to Com. “A” 1858, 4172, 4631, 4652, 5369 (Annex I) and “B” 9186.
8.	8.7.	“A” 4652	2.
9.1.	“A” 2227	único	5.2.1.	último	According to Com. “A” 2649 and 4172.
9.	9.2.	“A” 2227	único	5.1.1., 5.1.7. and 5.2.2.	According to Com. “A” 2461, 2649, 4172, 5272 and 5369.
10.1.	“A” 3985	According to Com. “A” 4172.
10.2.	“A” 3985	According to Com. “A” 4172.
10.3.	“A” 5272	8.	According to Com. “A” 5346 and 5469.
10.4.	“A” 5355	2.
10.	10.5.	“A” 5369	8.	According to Com. “A” 5580.

3.1. Conditions for Application. Determination of Distributable Result and Verification of Liquidity and Solvency.
For the purposes of paying the financial services corresponding to issuances of instruments representing debt, referred to in point 8.2.2. of Section 8. of the rules on “Minimum Capital of Financial Entities”, the specific procedure detailed below shall be used:
3.1.1. The issuance of such debt instruments must have prior approval from the shareholders' meeting or equivalent corporate body, which must issue its opinion on the issuance and its conditions. In these issuance conditions and in the offers made, the requirements conditioning the payment of financial services in accordance with this regime must be explicit, referencing the applicable Central Bank provisions in this matter.
When dealing with negotiable obligations, this requirement shall also be considered met in the case where the Ordinary General Meeting or equivalent corporate body authorizes a program for the generic issuance of instruments representing debt, delegating in its Board of Directors the determination of specific terms and conditions, observing what is provided in article 9° of Law 23.576. This, without prejudice to the analyses, regarding this aspect and others pertaining to each issuance and placement, corresponding to the National Securities Commission in matters of legality control, adjusted to the public offering regime of securities, in its capacity as the applying authority of Law 26.831.
3.1.2. To determine the existence of sufficient balance to proceed with payment, the general procedure provided for in points 2.1. and 2.2. regarding the determination of the capacity to distribute results shall be used, with the following exceptions:
3.1.2.1. amounts corresponding to the concepts provided for in points 2.1.1. and 2.1.2. shall not be deducted from unassigned results, nor shall they be considered for recalculating minimum capital positions -point 2.2.-.
3.1.2.2. the amount corresponding to the concept contemplated in point 2.1.5. shall not be deducted from unassigned results -point 2.1.-, nor shall it be considered as a deduction in computable equity responsibility (point 8.4. of Section 8. of the rules on “Minimum Capital of Financial Entities”) for recalculating minimum capital positions -point 2.2.-.
The Superintendence of Financial and Currency Entities, without prejudice to the authorization previously granted for the issuance, shall verify annually based on the corresponding distribution proposal formulated the correct application of the procedure for calculating unassigned results purged according to these provisions and the levels of solvency and liquidity required for this case and the constitution of the corresponding reserve for the attention of financial services. Consequently, issuances of debt instruments that do not satisfy the applicable requirements in the matter or, at the option of the entity, shall be subject to the general procedure provided for in Section 2.

DISTRIBUTION OF RESULTS B.C.R.A. Section 3. Specific Procedure.
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04/02/2013 Page 1

Since February 2012, for the purposes of verifying solvency referred to in point 2.2. of Section 2., the coefficient to be applied to the requirement resulting from the expression provided for in point 7.1. of Section 7. of the rules on “Minimum Capital of Financial Entities” shall be equal to 1. From 1.1.13, for the purposes of computing minimum capital positions for the verifications provided for in these rules, the capital requirement for credit risk from securitizations shall be computed on all operations valid at the date of computation.

DISTRIBUTION OF RESULTS B.C.R.A. Section 4. Transitional Provisions.
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12/11/2012 Page 1

ORDERED TEXT	ORIGIN RULE
SECTION	POINT	PARAGRAPH	COMM.	ANNEX	CAP.	SECTION	POINT	PARAGRAPH	OBSERVATIONS
1.1.	“A” 4589	1.
1.1.1.	“A” 4589	1.1.
1.1.2.	“A” 4589	1.2.	According to Com. “A” 4591 (point 6.) and 5072.
1.1.3.	“A” 4589	1.3.
1.1.4.	“A” 4589	1.4.	According to Com. “A” 5072.
1.	1.1.5.	“A” 5485
2.1.	“A” 4589	2.	According to Com. “A” 4591 (point 6.) and 5273.
2.1.1.	“A” 4589	2.1.
1°	“A” 4589	2.2.	1°	According to Com. “A” 4698, 4898, 4976, 5072 and “B” 9186.
2°	“A” 4589	2.2.	2°	According to Com. “A” 4591 (point 7.), 4664, 4898 and 4976.
3°	“A” 4898	According to Com. “A” 4976, 5072 and 5180.
2.1.2.	4°	“A” 4589	2.2.	3°
2.1.3.	“A” 4589	2.3.
2.1.4.	“A” 4589	2.4.
2.1.5.	“A” 4686	3.
2.1.6.	“A” 4702	4.	According to Com. “A” 5180.
2.2.	“A” 4589	3.	According to Com. “A” 4591 (point 8.), 5072, 5273 and “B” 9104.
2.2.1.	“A” 4589	3.1.	According to Com. “A” 4591 (point 8.).
2.2.2.	“A” 4589	3.3.	iv)	According to Com. “A” 4591 (point 8.) and “B” 9104.
2.2.3.	“A” 4589	3.3.	According to Com. “A” 4591 (point 8.).
2.	2.3.	“A” 4589	4.
3.1.	“A” 4591	1.	According to Com. “A” 5282.
3.1.1.	“A” 4591	1.	Incorporates the interpretative criterion of Com. “C” 46841. According to Com. “A” 5393.
3.	3.1.2.	“A” 4591	1.	According to Com. “A” 4686, 4702, 5072, 5180, 5282, 5369, 5580 and “B” 9104.
4.	“A” 5272	9.	According to Com. “A” 5282, 5346 and 5369.

B.C.R.A. ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE RULES ON “DISTRIBUTION OF RESULTS”

CONSOLIDATED SUPERVISION. B.C.R.A. Section 5. Compliance with regulations.

5.2.1.9. Valuation of debt instruments of the non-financial public sector and monetary regulation instruments of the Central Bank of the Argentine Republic.

5.2.2. Quarterly consolidated base.

Without prejudice to individual compliance, and in addition and independently of monthly consolidated base compliance, controlling financial entities subject to consolidated supervision shall observe the following rules on a quarterly consolidated basis:

5.2.2.1. Minimum capital.
5.2.2.2. Classification of debtors and minimum provisions for uncollectibility risk.
5.2.2.3. Segmentation of credit risk.
5.2.2.4. Maximum limit for holding shares in companies that do not provide services complementary to the financial activity.
5.2.2.5. Relationship for immobilized assets and other concepts.
5.2.2.6. Valuation of debt instruments of the non-financial public sector and monetary regulation instruments of the Central Bank of the Argentine Republic.

5.2.3. Compliance with regulations on "Prevention of money laundering, terrorist financing and other illicit activities".

Financial entities must ensure that branches and subsidiaries included in this regime consider the following within their internal control scheme:

5.2.3.1. Existence of written policies and procedures for the prevention of money laundering and terrorist financing framed within international standards, consistent with the specific characteristics of the different activities and consistent with those of the parent house and/or controlling entity.

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CONSOLIDATED SUPERVISION
ORDERED TEXT ORIGIN OF THE RULES
Section Point Paragraph Com. Annex Point Paragraph OBSERVATIONS
5.2.1.6. "A" 4891 8. According to Com. "A" 5557.
5.2.1.7. "A" 2690 unique 6.
5.2.1.8. "A" 2227 unique 5.1.8. According to Com. "A" 2736.
5.2.1.9. "A" 5180 8.
5.2.2. "A" 2227 unique 5.1. According to Com. "A" 2649. Completed by Com. "A" 2461, 2736, 2839, 5180, 5272, 5369 and "B" 5902.
5.2.3. "A" 4835 4. According to Com. "A" 5223.
5.2.4. "A" 5093
5.3.1. "A" 2227 unique 5.2.1. According to Com. "A" 2649 and 5520.
5.3.2. "A" 2227 unique 5.2.2. According to Com. "A" 5520.
5.4.1. "B" 6115 3rd
5.4.2. "B" 6566 1.
5.
5.5. "A" 2227 unique 5.3. According to Com. "A" 2649.

2.1. Requirement.

The capital requirement that cooperative credit unions must have integrated by the last day of each month shall be equivalent to the highest value resulting from the comparison between the basic requirement (point 2.4.) and the sum determined by credit and operational risks.

2.2. Integration.

For the purpose of determining compliance with the minimum capital requirement, the integration to be considered shall be the computable net worth liability.

2.3. Non-compliance.

The provisions established in point 1.4. of Section 1. of the regulations on "Minimum capital of financial entities" shall apply.

2.4. Basic requirements.

The following shall apply:

CATEGORIES REQUIREMENT
I $ 5,000,000
II $ 3,000,000
III $ 1,250,000
IV $ 500,000

Cooperative credit unions shall be classified into categories according to the criterion established generally in the regulations on "Minimum capital of financial entities".

In the event that the parent house and all branches of the cooperative credit union are installed in localities, municipalities or communes -as applicable according to the relevant jurisdiction- where up to two operational houses -head office/parent, branches and special attention dependencies "agencies"- of financial entities are enabled, the basic requirement corresponding to the immediately lower category shall apply.

When the condition indicated in the previous paragraph ceases to be met, the cooperative credit union must observe the basic requirement corresponding to it according to the preceding table, and -in case of incurring defects in the integration of minimum capital- must be framed according to what is provided in point 1.4.2. of Section 1. of the regulations on "Minimum capital of financial entities".

The basic requirement established in the cited table corresponding to cooperative credit unions classified in categories I and II shall be increased by 10% or 25% of the respective values when they have one or more branches or dependencies, whatever their class according to the regulations applicable in the matter, according to the present regulation, respectively.

COOPERATIVE CREDIT UNIONS (LAW 26.173) B.C.R.A. Section 2. Minimum capital and distribution of social capital.

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2.5.4.6. Financings covered with guarantees granted by reciprocal guarantee societies or public guarantee funds registered in the Records authorized at the B.C.R.A. 50

2.5.4.7. "Warrants" on fungible goods that have normal and habitual quotation in local or international markets, of wide dissemination and easy access to public knowledge, considering the established coverage margins (point 5.5. of Section 5.). 75

2.5.4.8. Accounts receivable from consumers for services already rendered, issued by service provider companies to the public, considering the established coverage margins (point 5.5. of Section 5.). 75

2.5.4.9. Credits for financial leases on real estate, motor vehicles and agricultural, road and industrial machinery (to the extent that they are registered in the relevant national motor vehicle property registry and have a market that allows obtaining a reference value), considering the established coverage margins (point 5.5. of Section 5.). 50

2.5.4.10. Other financings -including national public securities, provided they have quotation in stock exchanges and markets in which they are traded-, those that have the guarantees provided for in points 2.5.4.3., 2.5.4.5., 2.5.4.7., 2.5.4.8. or 2.5.4.9. when the coverage margins are lower than those corresponding according to the regulations of Section 5., and other assets. 100

2.6. Requirement for other risks.

2.6.1. Market.

It shall not be observed. The assets and off-balance sheet accounts involved shall be subject to credit risk requirements.

2.6.2. Operational.

The minimum capital requirement for operational risk corresponding to each month shall be equivalent to 10% of the requirement determined by credit risk of the respective month.

COOPERATIVE CREDIT UNIONS (LAW 26.173) B.C.R.A. Section 2. Minimum capital and distribution of social capital.

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B.C.R.A. ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE REGULATIONS ON "COOPERATIVE CREDIT UNIONS (LAW 26.173)"

ORDERED TEXT ORIGIN OF THE RULES
Sec. Point Par. Com. Annex Ch. Sec. Point Par. OBSERVATIONS
1.1. "A" 4712 Unique 1. 1.1.
1.2. "A" 4712 Unique 1. 1.2.
1.3. "A" 4712 Unique 1. 1.3. S/Com. "A" 5168, 5248, 5408 and 5485.
1.4. "A" 4712 Unique 1. 1.4.
1.5. "A" 4712 Unique 1. 1.5. S/Com. "A" 5248 and 5485.
1.6. "A" 4712 Unique 1. 1.6.
1.
1.7. "A" 4712 Unique 1. 1.7.
2.1. "A" 4712 Unique 2. 2.1. S/Com. "A" 5272, 5369 and 5580.
2.2. "A" 4712 Unique 2. 2.2.
2.3. "A" 4712 Unique 2. 2.3.
2.4. "A" 4712 Unique 2. 2.4. S/Com. "A" 5168.
2.5. "A" 4712 Unique 2. 2.5. S/Com. "B" 9186 and "A" 5067 and 5275.
2.6. "A" 4712 Unique 2. 2.6. S/Com. "A" 5272, 5369 and 5580.
2.7. "A" 4712 Unique 2. 2.7. S/Com. "A" 4972 (pt. 9.).
2.8. "A" 4712 Unique 2. 2.8.
2.
2.9. "A" 4712 Unique 2. 2.9.
3.1. "A" 4712 Unique 3. 3.1.
3.2. "A" 4712 Unique 3. 3.2.
3.3. "A" 4712 Unique 3. 3.3. S/Com. "A" 4809, 5091 and 5164.
3.4. "A" 4712 Unique 3. 3.4.
3.5. "A" 4712 Unique 3. 3.5.
3.6. "A" 4712 Unique 3. 3.6.
3.
3.7. "A" 4712 Unique 3. 3.7.
4.1. "A" 4712 Unique 4. 4.1.
4.2. "A" 4712 Unique 4. 4.2.
4.3. "A" 4712 Unique 4. 4.3. S/Com. "A" 4891 (pts 9. to 12.).
4.4. "A" 4712 Unique 4. 4.4.
4.5. "A" 4712 Unique 4. 4.5.
4.6. "A" 4712 Unique 4. 4.6.
4.7. "A" 4712 Unique 4. 4.7. S/Com. "A" 5520.
4.
4.8. "A" 4712 Unique 4. 4.8. S/Com. "B" 9186 and "A" 4972 (pt. 6.).
5.1. "A" 4712 Unique 5. 5.1. S/Com. "A" 5275.
5.2. "A" 4712 Unique 5. 5.2. S/Com. "A" 5067 and 5275.
5.3. "A" 4712 Unique 5. 5.3.
5.4. "A" 4712 Unique 5. 5.4.
5.5. "A" 4712 Unique 5. 5.5. S/Com. "A" 5067 and 5275.
5.6. "A" 4712 Unique 5. 5.6.
5.
5.7. "A" 4712 Unique 5. 5.7.
6.1. "A" 4712 Unique 6. 6.1.
6.2. "A" 4712 Unique 6. 6.2. S/Com. "A" 5299 and 5534.
6.
6.3. "A" 4712 Unique 6. 6.3.

3.1. Immobilized assets.

3.1.1. Basic amounts.

Immobilized assets shall be computed based on balances at the end of each month (capital, interest and updates by the Reference Stabilization Coefficient or the Salary Variation Coefficient -"CER" or "CVS", as applicable), net of accumulated depreciation and amortization and provisions for uncollectibility and devaluation risks attributable to them, without deducting provisions for uncollectibility risk on the portfolio corresponding to debtors classified as "in normal situation" (points 6.5.1. of Section 6. and 7.2.1. of Section 7. of the regulations on "Classification of debtors") and financings that are covered with preferred guarantees "A", which have been computed to determine the supplementary net worth in accordance with point 8.2.3.3. of Section 8. of the regulations on "Minimum capital of financial entities".

3.1.2. Deductions

3.1.2.1. Debts arising from the acquisition of immobilized assets, contracted with sellers or corresponding to loans obtained with specific and proven allocation of funds, not exceeding the residual value of the respective asset.

3.1.2.2. Advances received for the sale of said assets, not exceeding the residual value of the respective asset.

3.1.2.3. Liabilities assumed with the National Treasury for the deferral of tax payments made, due to tax franchises granted by regional or sectoral promotion regimes, through the acquisition of social shares, up to one year after the expiration of legal impediments to the free availability of the shares.

RELATIONSHIP FOR IMMobilized ASSETS
B.C.R.A. AND OTHER CONCEPTS
Section 3. Computation of concepts.

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3.2. Other concepts.

In the case of financings to related clients, the balance at the end of each month or the highest amount that such assistance registers for each client during the respective period, whichever is higher, shall be considered, computing for this purpose capital, interest, premiums, updates by the Reference Stabilization Coefficient or the Salary Variation Coefficient -"CER" or "CVS"- and exchange differences, as applicable, net of provisions for uncollectibility and devaluation risks attributable to them, without deducting provisions for uncollectibility risk on the portfolio corresponding to debtors classified as "in normal situation" (points 6.5.1. of Section 6. and 7.2.1. of Section 7. of the regulations on "Classification of debtors") and financings that are covered with preferred guarantees "A", which have been computed to determine the supplementary net worth in accordance with point 8.2.3.3. of Section 8. of the regulations on "Minimum capital of financial entities".

3.3. Exclusions.

Deductible concepts to determine computable net worth liability.

RELATIONSHIP FOR IMMobilized ASSETS
B.C.R.A. AND OTHER CONCEPTS
Section 3. Computation of concepts.

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ORDERED TEXT ORIGIN OF THE RULES
Section Point Paragraph Com. Ch. Point Paragraph OBSERVATIONS
1.1.1. "A" 2736 unique 1.6. According to Com. "A" 4093 (penultimate paragraph).
1.1.2. "A" 2736 unique 1.5. According to Com. "A" 3131, 4093 (penultimate paragraph) and 4296 (point 1.).
1.1.2.1. ii) "A" 2736 unique 1.5.1. According to Com. "A" 3131 and 5520.
1.1.3. a
1.1.6.
"A" 2736 unique 1.1. a
1.4.
According to Com. "A" 2753.
1.1.7. "A" 5496
1.
1.2.1. "A" 2753 1. Includes interpretative clarification and modification by Com. "A" 2832, 3558, 4093 (penultimate paragraph), 4502, 4817 (point 9.), 4888 and 5183.
2.1. "A" 2736 1. 1st According to Com. "A" 4093 (point 6.) and 5520.
2. and 5520.
2.2. "A" 4093 4.
3.1.1. "A" 2736 unique 1. last According to Com. "A" 2966, 4093 (penultimate paragraph), 5580 and "B" 9074.
3.1.2.1. "A" 2736 unique 3. According to Com. "A" 4093 (penultimate paragraph).
3.1.2.2. "A" 414
LISOL-1
VII 5.2.2.
3.1.2.3. "A" 2736 unique 3.
3.2. "A" 2736 1. 3rd According to Com. "A" 2966 (includes interpretative clarification), 4093 (penultimate paragraph), 5580 and "B" 9074.
3.
3.3. "A" 2736 1. 2nd
4. 4.1. "A" 2736 1. 1st According to Com. "A" 4093 (point 1.), 4838 (point 9.), 4937 (point 4.) and "B" 9745.
5.1.1. "A" 3161 1.
5.1.2. "A" 3161 1. According to Com. "A" 3171 (point 2.).
5.2. "A" 3161 1.
5.2.1. "A" 3161 1.
5.2.2. "A" 3161 1.
5.2.2.1. "A" 3161 1.
5.2.2.2. "A" 3161 1.
5.2.3. "A" 3161 1. According to Com. "A" 3171 (point 3.).
5.3.1.1. "A" 2241
CREFI-2
I 3.2.3.
5.3.1.2. "A" 2241
CREFI-2
II 1.2.
5.3.1.3. "A" 2241
CREFI-2
III 1.1.
5.3.1.4. "A" 2241
CREFI-2
IV 1.3.
5.
5.3.2. "A" 3161 1. According to Com. "A" 3171 (point 4.).
B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED
IN THE ORDERED TEXT OF THE REGULATIONS ON
"RELATIONSHIP FOR IMMobilized ASSETS AND OTHER CONCEPTS"

RELATIONSHIP FOR IMMobilized ASSETS AND OTHER CONCEPTS ORDERED TEXT ORIGIN OF THE RULES
Section Point Paragraph Com. Ch. Point Paragraph OBSERVATIONS
5.4. "A" 3161 1.
5. 5.5. "A" 414
LISOL-1
V 4. According to Com. "A" 817 and 4093 (penultimate paragraph).
6.1. "A" 2227 unique 5.2.1. last According to Com. "A" 2649.
6. "A" 2227 unique 5.1.8. According to Com. "A" 2736. 6.2. "A" 2227 unique 5.2.2.
7.1. "A" 3954 1.
According to Com. "A" 4020,
4124, 4254, 4402 and 4439,
(pt. 2.). 7.
7.2. "A" 5180 9.

Circular A 5580: Minimum Capital of Financial Entities, Distribution of Results, Consolidated Supervision, Cooperative Credit Unions (Law 26.173), Immobilized Assets and Other Concepts. Update.

C 10% n
(C VaR ) x n t 1
RC p,t
RO t t
∑=
+

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Circular A 5580: Minimum Capital of Financial Entities, Distribution of Results, Consolidated Supervision, Cooperative Credit Unions (Law 26.173), Immobilized Assets and Other Concepts. Update.

C 10% n (C VaR ) x n t 1 RC p,t RO t t ∑= +

Similar documents from other regulators

C 10% n
(C VaR ) x n t 1
RC p,t
RO t t
∑=
+