2015 – YEAR OF THE BICENTENARY OF THE CONGRESS OF THE FREE PEOPLES

COMMUNICATION “A” 5737 01/04/2015

TO FINANCIAL ENTITIES:

Reference: Circular

CONAU 1 - 1107

LISOL 1 - 629

Minimum capital requirement for operational risk. “Minimum capitals of financial entities”. “Distribution of results”. Adjustments

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

1. Replace the last paragraph of point 7.2 of the rules on “Minimum capitals of financial entities” with the following:

   "From the thirty‑seventh month, the monthly requirement shall be calculated in accordance with the provisions of points 7.1 and 7…"

2. Incorporate after point 7.1 of the rules on “Minimum capitals of financial entities” the following:

   7… Limit for entities belonging to Groups “B” and “C”.

   The requirement determined through the application of the expression described in point 7.1 may not exceed 17 % of the average of the last 36 months – prior to the month for which the requirement is determined – of the minimum capital requirement for credit risk calculated as provided in Section 3. This is always provided that, for those financial entities, the following conditions are simultaneously verified:

   7…1. As of 30 September of the year preceding the calculation date, they belong to Groups “B” or “C” (categorisation as provided in point 7.1 of Section 7 “Separation of executive and management functions”, Chapter I of Circular CREFI‑2, text according to point 1 of Communication “A” 5106);

   7…2. They are not subject to the provisions of Communication “A” 5694 for being branches or subsidiaries of foreign banks qualified as systemically important (G‑SIBs).

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The aforementioned maximum limit shall be reduced to 11 % when the financial entity has a rating of 1, 2 or 3 according to the assessment granted by the Superintendency of Financial and Currency Entities at the time of the latest inspection, regarding all of the following aspects: the entity as a whole, its information systems, and the work of those responsible for evaluating its internal control systems.

In cases where the financial entity receives a rating of 1 or 2 for all the cited aspects, the maximum limit shall decrease to 7 %.

This limitation on the operational‑risk capital requirement shall apply until the amount resulting from the following expression is reached:

```
ROsl – ROcap ≤ Δ consumer‑or‑housing portfolio relative to January 2015 × 8 % ```

Where:

• ROsl: operational‑risk capital requirement without applying the limit provided in this point.
• ROcap: operational‑risk capital requirement resulting from applying the limit provided in this point.
• Δ consumer‑or‑housing portfolio relative to January 2015: increase in the balance of consumer or housing financing corresponding to the month immediately preceding the date to which the minimum‑capital position refers, relative to January 2015.

The financings to be counted in the preceding paragraph shall be those granted to clients not linked by a personal relationship to the financial entity, as provided in point 2.2.2 of the rules on “Fractioning of credit risk”.

3. Establish that the average referred to in point 2 of this Communication shall be computed only on the basis of concepts corresponding to January 2013 and subsequent months.

4. Incorporate into point 2.2 of the rules on “Distribution of results” the following:

   2.2.4. the non‑consideration of the limit provided in point 7… of the rules on “Minimum capitals of financial entities”.

5. Render point 4.1 of the rules on “Distribution of results” ineffective.

6. Establish that these provisions shall be in force for the determination of the minimum‑capital requirement that must be integrated by 31 March 2015.

Finally, we inform you that we will subsequently send the pages that, in replacement of those previously provided, must replace the relevant sections of the rules on “Minimum capitals of financial entities” and “Distribution of results”.

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We greet you attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Darío C. Stefanelli Juan C. Isi

Senior Manager of Issuance and Normative Applications Deputy General Manager of Norms