Circular CONAU 1 - 1413: Distribution of results. Adjustments

2020 - YEAR OF GENERAL MANUEL BELGRANO

COMMUNICATION “A” 7035
04/06/2020

TO FINANCIAL INSTITUTIONS:

Ref.: Circular
CONAU 1 - 1413

Distribution of results. Adjustments.

---

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

“- Extend until 31.12.2020 the suspension of the distribution of results of financial institutions ordered by the resolution disclosed by Communication “A” 6939.”

On the other hand, we send you the pages that, in replacement of those previously provided, should be incorporated into the reference standards. In this regard, it is recalled that on the page of this Institution www.bcra.gob.ar, by accessing “Financial System - LEGAL AND REGULATORY FRAMEWORK - Compilations and summaries - Ordered texts of general regulations”, you will find the modifications made with texts highlighted in special characters (strikethrough and bold).

We greet you attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Matías A. Gutiérrez Girault
Issuance Manager of Standards

Darío C. Stefanelli
Principal Manager of Issuance and
Regulatory Applications

ANNEX

DISTRIBUTION OF RESULTS
B.C.R.A.
Section 7. Transitional provisions.

7.1. The countercyclical capital buffer that financial institutions must apply to their exposures in Argentina, in accordance with the provisions of point 4.2., is established, as of 1.4.16, at 0 %.

7.2. For the purposes of determining the distributable result, the increase in computable equity responsibility (RPC) resulting from the application of point 11.4. of the standards on “Minimum capital of financial institutions” and the lower provisions and higher RPC resulting from the treatments established in point 2. of Communication “A” 6946 (and amendments) –for financing to MSMEs destined for the payment of salaries– and in point 13. of Communication “A” 6938 –which postponed until 1.1.21, for financial institutions of Group “B”, the application of point 5.5 of IFRS 9– must be deducted from the computations provided in Sections 2. and 3.

7.3. The distribution of results of financial institutions is suspended until 31.12.2020.

Version: 6a. COMMUNICATION “A” 7035
Effective date:
5/6/2020
Page 1

B.C.R.A.
ORIGIN OF THE PROVISIONS CONTAINED IN THE STANDARDS ON “DISTRIBUTION OF RESULTS”

ORDERED TEXT			SOURCE STANDARD					OBSERVATIONS
Sect. Point	Par.	Com.	Annex	Chap.	Sect.	Point	Par.
1.			“A” 4589			1.		According to Com. “A” 5827 and 6464.
2.		1st and 2nd	“A” 4589			2.		According to Com. “A” 4591 (point 6.), 5273, 5827, 6327 and 6464.
	2.1.		“A” 6327			12.
	2.2.		“A” 6396			4.
	2.3.		"A" 6327			12.
	2.4.		"A" 4589			2.3.
	2.5.		"A" 4589			2.4.
		último	"A" 6327			26.
3.		1°	"A" 4589			3.		According to Com. "A" 4591 (point 8.), 5072, 5273, 5827, 5985, 6464 and "B" 9104.
	3.1.		"A" 4589			3.1.		According to Com. "A" 4591 (point 8.) and 6428.
	3.2.		"A" 4589			3.3.	iv)	According to Com. "A" 4591 (point 8.) and "B" 9104.
	3.3.		"A" 4589			3.3.		According to Com. "A" 4591 (point 8.), 6428 and 6464.
	3.4.		"A" 5737			4.
		último	"A" 4589			1.1. to 1.4.		According to "A" 4591, 5072 and 6464.
4.			"A" 5827
5.			"A" 4591			1.		According to Com. "A" 5282 and 5827.
	5.1.		"A" 4591			1.		Incorporates the interpretative criterion of Com. "C" 46841. According to Com. "A" 5393.
	5.2.		"A" 4591			1.		According to Com. "A" 4686, 4702, 5072, 5180, 5282, 5369, 5580, 5827, 6013, 6464 and "B" 9104.
6.			"A" 6768
7.	7.1.		"A" 5938
	7.2.		"A" 6946			3.		According to Com. "A" 7007.
	7.3.		"A" 6939					According to Com. "A" 7007 and 7035.