Circular LISOL 1-1086, OPRAC 1-1269, RUNOR 1-1875: Communication A 8067. Update of Consolidated Texts

"AÑO DE LA DEFENSA DE LA VIDA, LA LIBERTAD Y LA PROPIEDAD" COMUNICACIÓN “A” 8171 27/12/2024 TO FINANCIAL ENTITIES:
Ref.: Circular
LISOL 1-1086,
OPRAC 1-1269,
RUNOR 1-1875:
Communication "A" 8067. Update of Consolidated Texts.
___________________________________________________________________________ We address you to provide you with the attached sheets, which, in replacement of those previously provided, must be incorporated into the consolidated texts on Minimum Capital of Financial Entities, Large Credit Exposures, Guidelines for Risk Management in Financial Entities, and Financing to the Non-Financial Public Sector, in accordance with the provisions of the resolution disseminated by Communication A 8067. We remind you that on this Institution's website www.bcra.gob.ar, by accessing “Financial System – LEGAL AND REGULATORY FRAMEWORK – Consolidation and Summaries – Consolidated Texts of General Regulations”, you will find the modifications made with texts highlighted in special characters (strikethrough and bold). We salute you attentively. CENTRAL BANK OF THE ARGENTINE REPUBLIC Enrique C. Martín Dario C. Stefanelli Manager of Issuance Principal Manager of Issuance and Applicable Norms Normative Applications

ANNEX

-Index
Section 1. Minimum capital.
1.1. Requirement.
1.2. Basic requirement.
1.3. Integration.
1.4. Non-compliance.
Section 2. Minimum capital for credit risk.
2.1. Requirement.
2.2. Exclusions.
2.3. Calculation of included concepts.
2.4. Due diligence requirements.
2.5. Criteria for determining risk-weighted assets.
2.6. Exposures to financial entities.
2.7. Exposures to companies.
2.8. Retail exposures.
2.9. Exposures with mortgage guarantee.
2.10. Exposures in default situation.
2.11. Exposures to instruments.
2.12. Risk weighting table.
2.13. Off-balance sheet items. Credit conversion factors (CCF).
Section 3. Minimum capital for credit risk. Securitizations and fund investments.
3.1. Treatment of securitizations.
3.2. Treatment of fund positions.
Section 4. Minimum capital for counterparty credit risk.
4.1. Capital requirement for counterparty credit risk for failed and non-DvP operations.
4.2. Capital requirement for counterparty credit risk in operations with derivatives –OTC or traded on regulated markets– and with deferred settlement.
4.3. Capital requirement for counterparty credit risk in operations with central counterparty entities.
Section 5. Credit risk coverage.
5.1. Credit risk coverage techniques.
5.2. Requirements for the application of credit risk coverage techniques.
5.3. Operations covered with assets admitted as collateral.
5.4. Operations covered with personal guarantees (and counter-guarantees) and credit derivatives.
Section 6. Minimum capital for market risk.
6.1. Requirement.
6.2. Capital requirement for interest rate risk.
6.3. Capital requirement for equity position risk.
6.4. Capital requirement for exchange rate risk.
B.C.R.A. CONSOLIDATED TEXT ON
MINIMUM CAPITAL OF FINANCIAL ENTITIES
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For the purposes of applying the provisions of this section, financial entities will be classified into:
i) Group 1: entities rated by the BCRA as systemically important at the local level (D-SIB) and branches or subsidiaries of foreign banks rated as globally systemically important (G-SIB). ii) Group 2: financial entities not included in item i). In cases where no specific provisions are established for each of the aforementioned groups of financial entities, the same treatment must be applied to both groups. Financial entities that present changes in their rating –in accordance with the provisions in the preceding items– will have a period of 6 months to apply the specific provisions corresponding to the new group to which they belong.
2.1. Requirement.
It will be determined by applying the following expression:
CRC = (k x 0,08 x APRC) + INC 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 SEFYC, 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 into the third month following that in which the notification takes place will be considered. Until communicated, the value of “k” will be equal to 1,03. APRC: risk-weighted credit assets, determined by the sum of the values obtained after applying the following expression:
A x p + PFB x CCF x p + no DvP + (DVP + RCD + INC(significant investments in companies)) x 12,5 B.C.R.A. MINIMUM CAPITAL OF FINANCIAL ENTITIES
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where:
A: computable assets/exposures.
PFB: off-balance sheet items (computable concepts not recorded in the balance sheet of balances).
CCF: credit conversion factor. p: risk weight, as a decimal. no DvP: operations without delivery against payment. Amount determined by the sum of the values obtained after applying the corresponding risk weight (p) to the included operations in accordance with the provisions in point 4.1. DvP: failed delivery against payment operations (for the purposes of these regulations, they include failed payment against 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 4.1. RCD: requirement for counterparty credit risk in over-the-counter (OTC) derivative operations, determined in accordance with the provisions in point 4.2. INC(significant investments in companies): increase for excesses to the following limits:
– participation in the capital of each company: 15%; – total participations in the capital of companies: 60%.
The established maximum limits will be applied to the computable equity responsibility (RPC) of the financial entity on the last day prior to the one corresponding.
INC: increase for the following excesses:
– in the relationship of immobilized assets and other concepts (Section 4. of the respective TO), excluding those computed for the determination of INC(significant investments in companies); – to the limits established in the TO on Financing to the Non-Financial Public Sector, excluding those computed for the determination of INC(significant investments in companies); – to the limits established in the TO on Large Credit Exposures –as provided in item ii), point 2.1. of the TO on Minimum Capital Non-Compliance and Technical Relations. Applicable Criteria–, excluding those computed for the determination of INC(significant investments in companies); – to the credit grading limits (Section 3. of the respective TO); and B.C.R.A. MINIMUM CAPITAL OF FINANCIAL ENTITIES
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– to the limit of derivatives on commodities or basic products –commodities– provided in point 1.2. of the TO on Cash and Forward Operations, Repos, Pledges, Other Derivatives and with Common Investment Funds. In this matter, the provisions contained in Section 2. of the TO on Minimum Capital Non-Compliance and Technical Relations. Applicable Criteria will apply, unless the provisions in Section 3. of those norms apply. This expression will also include the credit exposure resulting from the use of expanded credit lines referred to in points 6.1.1.2. and 6.1.2.1. –item d)– of the TO on Financing to the Non-Financial Public Sector (considering, where applicable, the provisions in Section 9. of the cited norms) regarding the financial assistance granted and/or holdings of debt instruments of financial trusts or fiduciary funds referred to in point 5.1. of the TO on Financing to the Non-Financial Public Sector and point 3.2.4. of the cited regulation, computed according to the following schedule, which will operate from the moment 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. Computation as INC of the use of the expanded quota –as a % of said use– From the 25 First month 50 Seventh month 100 Thirteenth month The non-financial public sector cited in these norms is that defined in Section 1. of the TO on Financing to the Non-Financial Public Sector.
2.2. Exclusions.
2.2.1. Guarantees granted in favor of the BCRA and by direct obligations.
2.2.2. Concepts that must be deducted for the purposes of calculating the RPC.
2.2.3. Financing and 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 by the controlling entity, provided that the following requirements are met:
2.2.3.1. 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 supervision of the local branches or subsidiaries.
2.2.3.2. The entity must comply with the provisions in point 3.1. of the TO on Credit Evaluations, requiring in this effect an international risk rating included in the investment grade category.
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2.2.3.3. In the case of financing, these must be attended to by the local branches or subsidiaries only with funds coming 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 cannot assume the exchange rate risk.
2.2.3.4. 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, whose effectiveness operates in an unrestricted manner upon simple request of the local branch or subsidiary and in no immediate manner upon its eventual execution by the beneficiary.
2.3. Calculation of included concepts.
2.3.1. Individual and consolidated monthly basis.
The included concepts will be computed on the basis of balances on the last day of each month (capital, interest, premiums, updates –by the Reference Stabilization Coefficient CER– and quotation differences, as applicable, net of provisions for uncollectible risk –including, where applicable, provisions accounted for in the liability– and devaluation and accumulated depreciation and amortization attributable to them and other regularizing accounts, without deducting 100% of the amount of the provision for uncollectible risk corresponding to the portfolio of debtors classified “in normal situation” –points 6.5.1. and 7.2.1. of the TO on Debtor Classification– and to financing that is covered with preferred guarantees A).
2.3.2. Consolidated quarterly basis.
The balances at the end of the quarter will be considered, applying the corresponding provisions in other aspects.
2.4. Due diligence requirements.
Group 1 financial entities must carry out a due diligence process –at the time of granting the credit and with a minimum annual frequency– in order to have an adequate understanding of the risk profile and characteristics of their counterparties. The degree of sophistication of the due diligence evaluations must be proportional to the size and economic importance of the financial entities and to the nature and complexity of their operations. As a result of this evaluation, financial entities must demonstrate to the SEFYC that the risk weights assigned are adequate to the risk profiles of their counterparties. For these purposes, Group 1 financial entities must:
i) adopt adequate and reasonable measures in order to evaluate the financial and operational performance of each counterparty through credit analysis; B.C.R.A. MINIMUM CAPITAL OF FINANCIAL ENTITIES
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ii) have access to information about their counterparties on a regular basis to complete their analysis; iii) carry out analyses of exposures to counterparties belonging to consolidated groups –whenever possible– at the individual level. When evaluating the payment capacity of the individual counterparty, financial entities must take into account the backing of the economic group, as well as the possibility that the counterparty may be harmed by problems generated in the economic group; iv) have effective policies, processes, systems, and internal controls; and v) be able to demonstrate to the SEFYC that their due diligence analyses are adequate and consistent with other models and evaluations that must be carried out by the entities –such as the processes for estimating provisions for uncollectible risk and for evaluating their economic capital–, as well as with the criteria contemplated in complementary norms –among others, Sections 1. and 2. of the TO on Guidelines for Risk Management in Financial Entities–. This requirement will not apply to exposures to governments and central banks provided in point 2.12.2.
2.5. Criteria for determining risk-weighted assets.
2.5.1. The risk weights established in point 2.12. will be applied –according to the group to which the financial entity belongs, in accordance with the provisions of this section–.
If as a result of the due diligence process –in accordance with the provisions in point 2.4.– higher risk weights than those established in point 2.12. arise, Group 1 financial entities must apply the greater of the two.
2.5.2. Risk weights will be applied per operation. If it is understood that an exposure could be subject to different specific risk weights, the greater of them will be applied.
2.5.3. Group 1 financial entities must assign to exposures denominated in a currency different from that of their counterparties' income –in the cases of retail exposures without credit risk coverage from Section 5. and exposures with mortgage guarantee on residential real estate– a risk weight of 150% or the result of multiplying by 1.5 the weight that would correspond to them according to these provisions, the greater of the two.
2.5.4. For the purposes of determining the risk weight to be applied to the exposures referred to in points 2.12.2.4., 2.12.2.5., 2.12.2.6. and 2.12.2.8., the rating granted by an entity that is an External Credit Assessment Institution (ECAI) admitted by the BCRA must be used, in accordance with the provisions in Section 10.
The credit ratings contemplated in these points correspond to the methodology used by Standard & Poor’s and are used only as an example.
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No exposure with unrated debtors may receive a risk weight lower than that applied to the country of incorporation, except for the exposures referred to in points 2.12.2.2. and 2.12.2.3.
2.5.5. The term “exposure” covers all financing granted by the entity –in its various modalities, such as loans, holdings of securities, bonds, guarantees, and other contingent liabilities–, including those arising from operations carried out in securities, currency, and derivatives markets.
In the case of exposures to financial entities, exposures to companies, retail exposures, exposures with mortgage guarantee, exposures in default situation, and exposures to instruments, the specific provisions of points 2.6., 2.7., 2.8., 2.9., 2.10. and 2.11., respectively, must be taken into account. To determine the amount of financing included in the exposure to the non-financial public sector, regarding national public titles that have normal and habitual quotation for significant amounts in country markets applied to passive repo operations in pesos and that are funded with deposits of those public titles, the net position criterion for titles provided in the TO on Financing to the Non-Financial Public Sector will be observed. Exposures will include debt balances and contingent commitments multiplied by the corresponding credit conversion factor (CCF).
2.5.6. The treatment granted to the exposure to the non-financial public sector will not apply to operations with counterparties to which the BCRA has granted the treatment provided for non-financial private sector entities. In these cases, they must be considered as exposures to private sector non-financial companies.
2.5.7. In the case where at least one of the counterparty's operations with the financial entity is in a situation of default, the entire exposure of the financial entity to the counterparty will be subject to the treatment provided in point 2.10.
2.5.8. Exposures denominated in foreign currency but whose service collection is made in pesos –dollar linked– will be computed as those denominated in national currency. Exposures to the non-financial public sector of national public titles in pesos with dual currency yield must be considered as species issued in pesos.
2.5.9. Central Counterparty (CCP) entity is understood to be the clearing house that intervenes between the parties of a financial contract traded 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. The CCP becomes the counterparty in the negotiations of market participants through novation, or through an open bidding system or using another scheme with legal force. For the purposes of determining the treatment to be dispensed to the exposure to a CCP, the provisions in point 4.3.3. or 4.3.4. will apply, as appropriate.
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2.5.10. Credits incorporated by portfolio purchases will have the same treatment as credits originated by the entity itself, provided that the corresponding conditions are met.
2.5.11. For the purposes of recognizing credit risk coverage, the provisions in Section 5. will be taken into account.
2.6. Exposures to financial entities.
2.6.1. Included exposures.
It includes exposures to domestic and foreign financial entities (the latter, subject to prudential regulation and supervision comparable to the minimums established in international standards or to compliance with the minimum capital requirement when it comes to banks that are not internationally active according to the regulation of their jurisdiction). Exposures provided in point 2.11. are excluded. Short-term exposures include those denominated in pesos whose source of funds is in that currency and whose original contractual term is up to 3 months, and exposures linked to foreign trade whose original contractual term is up to 6 months.
2.6.2. Group 1 financial entities will use the Standardised Credit Risk Assessment Approach (SCRA) for the assignment of risk weights. For these purposes, counterparties must fall into one of the following grades:
2.6.2.1. Grade A.
The borrowing financial entity:
i) demonstrates adequate capacity to comply –in a timely manner– with its financial commitments during the estimated life of the exposures, regardless of the economic situation and business conditions; and ii) observes the minimum regulatory disclosure requirements –including the countercyclical and capital conservation margin– or equivalents –in the case of foreign financial entities–. Exposures must be assigned to grades B or C, if:
a) it is verified that the borrowing entity does not observe the minimum regulatory disclosure requirements provided in item ii), or does not provide the information required to the lending financial entity; and/or b) the financial entity determines –as part of the due diligence process provided in point 2.4.– that the counterparty does not meet the requirements provided for Grade A. B.C.R.A. MINIMUM CAPITAL OF FINANCIAL ENTITIES
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2.6.2.2. Grade B.
The lending financial entity:
i) exhibits substantial credit risk and its repayment capacity is contingent on a favorable economic situation or business conditions, or has a stable outlook; and ii) meets the minimum regulatory disclosure requirements (without considering the countercyclical and capital conservation buffers) or equivalent requirements (in the case of foreign financial entities). Exposures shall be assigned to Grade C when it is verified that the lending financial entity does not meet the minimum regulatory disclosure requirements set forth in item ii) or when it fails to provide the information required by the lending financial entity.

2.6.2.3. Grade C.
Grade C shall be assigned to exposures to the lending financial entity that is in any of the following situations:
i) it exhibits material default risk and it is probable that it will not be able to meet its financial obligations in an unfavorable economic, financial, or business situation; ii) it does not meet the minimum regulatory disclosure requirements indicated for Grade B or does not provide the information required by the lending financial entity; iii) the external auditor issues a "qualified opinion," "adverse opinion," or "disclaimer of opinion" regarding its ability to continue as a going concern, either in the financial statements or in any other audited report in the last 12 months; iv) the lending financial entity evaluates –as part of the due diligence process provided for in point 2.4.– that its counterparty meets the characteristics of Grade C, even if the situations described in items i) to iii) are not verified. Minimum regulatory disclosure requirements are understood to be those established in the corresponding regulations –regardless of the group to which the lending financial entity belongs according to the TO on Authorities of Financial Entities–, excluding liquidity rules.

2.6.3. Financial entities in group 2 shall assign to exposures to their counterparties the risk weights provided for in point 2.12.

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2.7. Exposures to companies.
2.7.1. Exposures included.
i) Companies and other legal entities from the country and abroad –such as exchange entities, insurers, stock exchanges, and companies in the country to which the non-financial public sector treatment is granted based on what is established in Section 1 of the TO on Financing to the Non-Financial Public Sector–. ii) Other entities with similar characteristics that do not meet the criteria to be admitted in other categories. Exposures to instruments provided for in point 2.11 are not included.

2.7.2. For the purpose of assigning the risk weights provided for in point 2.12., financial entities shall consider the following definitions:

2.7.2.1. Companies with "investment grade".
Companies with "investment grade" are those with sufficient capacity to meet their financial commitments promptly even in the face of adverse changes in the economic situation and business conditions. To this end, the complexity of the company's business model, its performance relative to its industry and similar companies, and the risks in its operating environment shall be taken into account. The company with "investment grade" (or its controlling entity) must have issued securities listed on recognized stock exchanges or markets.

2.7.2.2. Specialized financing for large infrastructure projects. Pre-operational stage.
Specialized financing for large infrastructure projects is that in which the lending financial entity does not consider the debtor's general income, but the income generated by a single project as the source of repayment and backing for the credit. Projects related to the real estate activity are not included. Specialized financing for large infrastructure projects must have –legally or in its economic reality– any of the following characteristics:
i) It is granted to an entity –such as a special purpose entity (SPE)– created solely for the purpose of financing or managing the project. ii) The borrowing entity does not have other significant assets or activities, and therefore lacks means for repaying the financing other than the income from the project that is the subject of that financing. iii) The contractual terms of the financing granted give the lending financial entity a high degree of control over the income and/or assets associated with the project.

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A project is in the pre-operational stage if:
a) the entity created to manage it does not yet have a sufficient positive cash flow to cover contractual obligations; and b) long-term debt is not decreasing.

2.7.2.3. Micro, small, and medium enterprises (MSMEs) that do not meet the criteria for regulatory retail exposures provided for in point 2.8.3.

2.8. Retail exposures.
2.8.1. Exposures included.
i) Natural persons. ii) Micro, small, and medium enterprises (MSMEs), according to the TO on Determination of the Condition of Micro, Small, and Medium Enterprise, that meet the criteria for regulatory retail exposures provided for in point 2.8.3. The rest of the exposures to MSMEs will receive the treatment applicable to exposures to companies provided for in point 2.7. Exposures with mortgage guarantee on residential housing, equity participations in MSMEs, and holding of debt instruments issued by these companies are excluded.

2.8.2. Classification.
i) Regulatory retail exposures –those that must meet the criteria provided for in point 2.8.3.–.
Financial entities may classify regulatory retail exposures into:
a) Transactional. This includes facilities for the use of credit cards –or similar– that have been fully cancelled on each due date during the last 12 months. It includes overdraft agreements, to the extent that such facility has not been used in the last 12 months. b) Non-transactional. The exercise of this option must be communicated to SEFYC with 30 days' advance notice. In the case that financial entities do not exercise this option, all regulatory retail exposures shall be considered non-transactional. ii) Non-regulatory retail exposures.

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2.8.3. Regulatory retail exposures. Criteria.
2.8.3.1. Product.
Exposures must be structured as revolving financings, pledge loans, personal loans, financial leases, and/or be financings to MSMEs. Revolving financings are understood to be those financings in which borrowers are authorized to make withdrawals and cancellations within the limits agreed upon in a credit line, and which include credit cards and current account overdrafts.

2.8.3.2. Concentration.
The portfolio must be diversified. To this effect, the total exposure to each individual counterparty (single beneficiary or set of connected and associated counterparties to a single beneficiary, as provided for in point 1.2.1 of the TO on Large Exposures to Credit Risk) must not exceed 0.2% of the total regulatory retail exposures of the entity, without considering exposures in default as provided for in point 2.10. For the purpose of calculating the limit defined in the preceding paragraph, the cited percentage shall be applied to the balance of regulatory retail exposures at the end of the month prior to the month to which the balances used to determine the requirement refer. Individual counterparties whose exposure balance at the end of the month referred to in the second term exceeds that limit cannot be included in regulatory retail exposures. The total exposure will be the gross amount –without considering credit risk coverages from Section 5.– of retail exposures with the counterparty. Off-balance sheet items will be computed after applying the applicable credit conversion factor (CCF).

2.8.3.3. Limit.
The maximum exposure to the same individual counterparty must not exceed, at the time of the agreement, the following amounts:
i) Natural persons –consumer portfolio–: the amount equivalent to 75 times the Minimum, Vital and Mobile Salary established by the National Council of Employment, Productivity and Minimum, Vital and Mobile Salary for monthly workers who work the full legal working day, valid at the close of the month prior to the month in question. ii) MSMEs (including financings to natural persons for the development of their professional activity): the amount equivalent in pesos to €1,000,000 (in line with international standards) at the selling exchange rate of the Bank of the Argentine Nation at the close of business on the last business day of the month prior to the month in question.

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2.8.3.4. In the case of retail exposures to natural persons, the total of the due dates for the installments of all financings of the financial entity that have periodic amortization –without considering installments of credits from other entities– must not exceed, at the time of the agreements, 30% of the debtor's and/or, where applicable, co-debtors' income.
Consequently, the margins agreed for current account overdrafts and the purchase limits for credit cards –in both cases, both the used and available limits–, as well as pre-agreed personal loans –to the extent that they have not yet been formalized or disbursed to the client–, will not form part of the numerator of the installment/income ratio as they do not have periodic amortization. Installments that the client has for purchases financed under the credit card system must be considered within the concept of "installments". For the purpose of considering in regulatory retail exposures credits incorporated through a portfolio purchase, the necessary information must be available to verify compliance with the criteria and limits detailed above.

2.9. Exposures with mortgage guarantee.
2.9.1. Treatment.
Group 1 financial entities will classify exposures with mortgage guarantee into regulatory –those that must meet the requirements provided for in point 2.9.2.– and non-regulatory. Exposures with mortgage guarantee of group 2 financial entities will receive the treatment provided for regulatory exposures with mortgage guarantee. To this effect, the risk weights provided for in points 2.12.8.1. and 2.12.8.2. shall apply, provided that the requirement of point 2.9.2.1. is observed.

2.9.2. Regulatory exposures with mortgage guarantee. Requirements.
2.9.2.1. The mortgage guarantee must be first rank, or of any rank of priority provided that the entity is the creditor in all ranks.

2.9.2.2. The exposure must be guaranteed by a completed real estate property. This requirement shall not apply to rural real estate nor to financings to natural persons that are guaranteed by a real estate property under construction or by land intended for that purpose; in the latter case, provided that:
i) it is a construction of up to 4 units for housing –one of which will be the sole, family, and permanent occupation residence of the borrower–; or ii) any of the entities covered by the TO on Financing to the Non-Financial Public Sector has legal authority and capacity to ensure the completion of the construction of the real estate property.

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2.9.2.3. The loan-to-value (LTV) ratio between the debt balance and the value of the real estate property must be calculated prudently and subject to the following requirements:
i) The outstanding debt balance shall be computed without deducting provisions for uncollectible risk or credit risk coverages provided for in Section 5. ii) The value of the real estate property corresponds to that at the time of granting, except that:
a) Adjustments are made for objective reasons. b) The BCRA establishes that a generalized reduction in value must be made. If increases are subsequently authorized, the adjusted value of the real estate property cannot exceed the value considered at the time of granting the credit, duly updated. c) An idiosyncratic and extraordinary event occurs resulting in a permanent reduction in the value of the real estate property. d) Permanent improvements are made to the real estate property that undoubtedly increase its value. iii) The value of the real estate property is the result of an appraisal that meets the following criteria:
a) it adjusts to a conservative valuation; b) it is carried out independently from those participating in the credit granting processes; c) it is not based on the expectation that the price of the real estate property will increase; d) it does not exceed the market price; e) it is not higher than the acquisition price –in cases where the mortgage loan finances the purchase of the mortgaged real estate property–, considering what is provided for in item ii), sub-item a); and f) it does not depend on the economic situation of the borrower.

2.9.2.4. Any right over the real estate property must be legally enforceable, and the documentation and legal process for execution must allow the financial entity to recover the value of the real estate property within a reasonable time.

2.9.2.5. All information requested –both at the origination of the loan and during its monitoring– must be duly documented; in particular, that referring to the borrower's repayment capacity to amortize its debt and to the appraisal of the real estate property.

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2.9.2.6. The repayment of financings must not depend significantly on the cash flow generated by the real estate property subject to the mortgage guarantee.

2.9.2.7. Loans must not be destined to companies or special purpose entities (SPE) to finance the acquisition of land intended for development and construction projects or to develop and construct residential and commercial real estate properties.

2.9.2.8. Financial entities must establish policies for the granting of mortgage loans that allow for an adequate evaluation of the borrower's repayment capacity, including metrics and limits (such as the debt service coverage ratio), in accordance with what is provided for in the TO on Guidelines for Risk Management in Financial Entities.

2.10. Exposures in default.
This includes all exposures to a debtor with respect to whom any of the following situations is verified:
i) The debtor has a credit in arrears for more than 90 days. A current account overdraft is considered in arrears from the moment the debtor exceeds the authorized limit or is communicated a new limit that is lower than its debtor balance. ii) The debtor has any significant obligation regarding which the accrual of interest has been suspended, or the interest is fully provided for. iii) An obligation has been written off or a specific provision has been established against a significant deterioration in the credit quality of the debtor after the granting of the credit. iv) A credit has been sold with a significant loss due to its credit situation. v) A restructuring of a credit obligation has been agreed that may result in a reduction of the debt as a consequence of haircuts, deferrals of capital or interest payments, or a reduction in applicable commissions. vi) Bankruptcy of the debtor or another similar measure has been requested that causes the deferral or prevents the recovery of the credit by the entity. vii) The debtor has requested its preventive bankruptcy or bankruptcy or another similar measure that causes the deferral or prevents the recovery of the credit by the entity. viii) The financial entity considers that it is improbable that it can recover the total of the debtor's debts without resorting to the execution of guarantees or other measures to defend its credit.

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Section 2. Minimum capital by credit risk.
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2.11. Exposures to instruments.
2.11.1. Group 1 financial entities shall classify exposures to instruments into:
i) Subordinated debt issued by companies and/or financial entities. ii) Shares –defined according to the criteria established in point 2.11.3.–. iii) Other equity instruments issued by companies and/or financial entities.

2.11.2. Group 2 financial entities shall classify exposures to instruments into:
i) Subordinated debt issued by companies and/or financial entities. ii) Equity participations issued by companies and/or financial entities.

2.11.3. Criteria for considering an exposure to an instrument as a share.
For the purpose of determining whether an exposure should be treated as a share, group 1 financial entities must take into account the economic reality of the instrument.
The following are included:

2.11.3.1. Direct and indirect participations in the equity and profits of financial entities and companies, with or without voting rights. Indirect participations include, among others, the holding of derivative instruments linked to shares and to shares, quotas, or interest parts in commercial companies whose main activity is investment in shares.

2.11.3.2. Instruments, to the extent that they meet the following conditions:
i) They cannot be amortized. The results of the investment can only be realized through the sale of the instrument or the rights over the investment or through the liquidation of the issuer. ii) They do not represent any obligation for the issuer. iii) They represent a residual right over the assets or profits of the issuer.

2.11.3.3. Instruments that have the same structure as those admitted as Common Equity Tier 1 (CET1) capital of financial entities.

2.11.3.4. Any instrument that incorporates an obligation for the issuer and has any of the following characteristics:
i) The issuer can indefinitely defer the payment of the obligation.

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Section 2. Minimum capital by credit risk.
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ii) The contract establishes or grants the issuer the option to cancel the obligation by issuing:
a) a fixed amount of its shares; and/or b) a variable amount of its shares and –keeping other factors constant– any change in the value of the obligation is attributable and proportional to the change in the market value of a fixed number of shares of the issuer multiplied by a predetermined factor. iii) The holder has the option to demand payment of the obligation with shares.

2.11.3.5. Debt securities and other securities, derivatives, and structured vehicles with the purpose of replicating the economic reality of a share.
This includes obligations whose return is linked to shares, and shares accounted for as a loan that originate from a debt-for-equity swap carried out in a debt restructuring process. The minimum capital requirement determined for these latter instruments cannot be less than what would have corresponded had they remained in the credit portfolio. For the purpose of compliance with these provisions, SEFYC may reclassify debt positions as share positions if it observes that the conditions and requirements ensuring adequate treatment of holdings are not met. Investments in structured shares with the object of replicating the economic reality of credit exposures or securitizations are not considered shares.

2.12. Risk weight table.
Concept Weight
–in %–
2.12.1. Cash and balances.
2.12.1.1. Cash in hand, in transit (when the financial entity assumes responsibility and risk of transfer) and in ATMs. 0
2.12.1.2. Current and special accounts at the BCRA and payment orders charged to the BCRA. 0

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Section 2. Minimum capital by credit risk.
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2.12.1.3. Minted gold or bars of "good delivery," as defined in the TO on Foreign Exchange and External Sector, at the entity or at another financial entity –as long as it is individualized on an allocated basis– and provided that the assets are backed by liabilities denominated in these species. 0

2.12.1.4. Cash items that are in the process of being collected (checks and drafts for collection), cash in transit with valuables transport companies, and cash in custody at financial entities. 20

2.12.2. Exposure to governments and central banks.

2.12.2.1. To the BCRA in pesos, when its source of funds is in that currency. 0

2.12.2.2. To the National Government and to provincial and municipal governments and of the Autonomous City of Buenos Aires (CABA) in pesos, when its source of funds is in that currency. 0

2.12.2.3. To the non-financial public sector for financings granted to beneficiaries of the social security system or to public employees –in both cases, with a discount code–, to the extent that such operations are denominated in pesos, the source of funds is in that currency, and the installments of all the entity's financings that have a periodic amortization system do not exceed, at the time of the agreements, 30% of the debtor's and/or, where applicable, the co-debtors' income. 0

2.12.2.4. To the non-financial public sector and to the BCRA. Other.

Rating	AAA to AA-	A+ to ABBB+	BBB+ to BBBB-	B+ to B-	Below B	Unrated
Risk Weight	0%	20%	50%	100%	150%	100%

2.12.2.5. To other sovereign states (or their central banks).

Rating	AAA to AA-	A+ to ABBB+	BBB+ to BBBB-	B+ to B-	Below B	Unrated
Risk Weight	0%	20%	50%	100%	150%	100%

2.12.2.6. To entities of the non-financial public sector of other sovereign states, according to the credit rating assigned to the corresponding sovereign.

Rating	AAA to AA-	A+ to ABBB+	BBB+ to BBBB-	B+ to B-	Below B	Unrated
Risk Weight	20%	50%	100%	100%	150%	100%

2.12.2.7. To the Bank for International Settlements, the International Monetary Fund, the European Central Bank, the European Stability Mechanism, and the European Financial Stability Facility. 0

2.12.2.8. To the provincial, municipal, and/or CABA non-financial public sector for the acquisition of public titles issued in pesos by the central administration, when they do not have any of the guarantees established in point 4.1.1. of the TO on Financing to the Non-Financial Public Sector, according to the credit rating assigned to the corresponding jurisdiction.

Rating	AAA to AA-	A+ to ABBB+	BBB+ to BBBB-	B+ to B-	Below B	Unrated
Risk Weight	20%	50%	100%	150%	200%	200%

2.12.3. Exposures to multilateral development banks (MDBs).

2.12.3.1. Exposure to entities that, in the judgment of the Basel Committee on Banking Supervision, satisfactorily meet the admissibility criteria contemplated in the international standards. 0

2.12.3.2. Other. 50

2.12.4. Exposure to financial entities.

2.12.4.1. Exposure to financial entities by financial entities of group 1 (SCRA).

Counterparty Credit Risk Assessment	Grade A	Grade B	Grade C
General Weight	40%	75%	150%
Weight for short-term exposures	20%	50%	150%

The risk weight of exposures to financial entities cannot be lower than the weight applicable to the jurisdiction in which the counterparty is established when:

i) the exposure is not denominated in the local currency of the counterparty's jurisdiction of establishment; or ii) the debt is contracted by a branch or subsidiary of the counterparty abroad, and is not denominated in the local currency of the jurisdiction in which it operates.

The treatment provided for in items i) and ii) excludes self-liquidating contingent lines for the financing of foreign trade with an original contractual term of up to one year.

2.12.4.2. Exposure to financial entities by financial entities of group 2.

i) Short-term exposures. 20 ii) Other. 100

2.12.5. Exposures to enterprises.

2.12.5.1. Enterprises with "investment grade". 65

2.12.5.2. SMEs that do not meet the criteria provided for in point 2.8.3. 85

2.12.5.3. Specialized financing for large infrastructure projects. Pre-operational stage. 130

2.12.5.4. Other. 100

2.12.6. Retail exposures.

2.12.6.1. Regulatory transactional retail exposures. 45

2.12.6.2. Regulatory non-transactional retail exposures. 75

2.12.6.3. Non-regulatory retail exposures. 100

2.12.7. Exposures guaranteed by reciprocal guarantee societies or public guarantee funds registered in the Records authorized at the BCRA. 50

2.12.8. Exposures with mortgage collateral.

2.12.8.1. Regulatory exposures with mortgage collateral on residential real estate.

i) With respect to credit support that does not exceed 55% of the property's value. 20 ii) On the amount exceeding 55% of the property's value, the counterparty's risk weight will be applied.

2.12.8.2. Regulatory exposures with mortgage collateral on commercial real estate.

i) Up to the amount equivalent to 55% of the property's value, the risk weight of 60% or the counterparty's risk weight, whichever is lower, will be applied. ii) For the amount exceeding 55% of the property's value, the counterparty's risk weight will be applied.

2.12.8.3. Non-regulatory exposures with mortgage collateral. 150

The counterparty's weight –referred to in points 2.12.8.1. and 2.12.8.2.– will be the one that would be assigned to an exposure without mortgage collateral. To this effect, a risk weight of 75% will be applied for exposures to natural persons, 85% for exposures to SMEs, and the weights provided for in point 2.12. for the rest of the exposures.

2.12.9. Exposures in default.

2.12.9.1. Regulatory exposures with mortgage collateral on residential real estate. 100

2.12.9.2. Exposures or tranches not covered by credit risk coverages of Section 5. not contemplated in point 2.12.9.1.

i) With specific provisions less than 20% of the outstanding balance. 150 ii) With specific provisions equal to or greater than 20% and less than 50% of the outstanding balance. 100 iii) With specific provisions equal to or greater than 50% of the outstanding balance. 50

2.12.9.3. Part of the exposures that have credit risk coverages. The provisions of Section 5. must be taken into account.

2.12.10. Exposures to instruments (non-deductible part of the RPC as provided in Section 8.).

2.12.10.1. Exposures to instruments by financial entities of group 1.

i) Subordinated debt and capital instruments that do not meet the characteristics to be considered as shares. 150 ii) Shares (defined according to point 2.11.3.). 250

2.12.10.2. Exposures to instruments by financial entities of group 2.

i) Subordinated debt. 150 ii) Equity participations. 250

2.12.11. Securitization positions. The provisions of point 3.1. must be taken into account.

2.12.12. Non-failed cash operations to be settled. 0

2.12.13. Failed DvP and non-DvP operations. The provisions of point 4.1. must be taken into account.

2.12.14. Exposures to CCPs. The provisions of point 4.3. must be taken into account –with the exception of the cases contemplated in point 4.1.–.

2.12.15. Derivative operations not included in point 2.12.14. The provisions of point 4.2. must be taken into account.

2.12.16. Exposures to natural and legal persons originated by installment purchases made until 11/25/21, using credit cards for flights abroad and other tourist services abroad (such as accommodation, car rental, etc.), whether made directly with the service provider or through a travel and/or tourism agency or web platforms. 1250

2.12.17. Other assets and/or off-balance sheet items. 100

2.13. Off-balance sheet items. Credit Conversion Factors (CCF).

Off-balance sheet items –including commitments for financings and correspondent lines to entities abroad, guarantees granted, sureties granted on deferred payment checks, documentary credits and acceptances, documents rediscounted at other financial entities, and other credit agreements– will be converted into credit equivalents using the following CCFs, after which the risk weights established in point 2.12. will be applied, taking into account, where applicable, the provisions established in Section 5.:

Concept	CCF - in % -
i) Direct credit substitutes, such as general debt guarantees –including stand-by letters of credit used as financial guarantees– and acceptances and endorsements with liability.	100
ii) Contingent items related to the client's commercial operations –such as those derived from guarantees of compliance with commercial obligations–.	50
iii) 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 confirmer will be subject to the CCF provided for in this item and the weight corresponding to the counterparty.	20
iv) Asset sales with repurchase agreements –even in swap operations– or with liability for the transferor, and in general, operations of a similar nature, in which the entity retains the credit risk of the asset (they will be weighted according to the asset and not based on the counterparty). This treatment excludes titles delivered as collateral for derivative operations provided for in point 4.2.	100
v) Commitments to acquire assets not recorded in the balance sheet (they will be weighted according to the asset and not based on the counterparty).	100
vi) Short-term securities issuance lines (note issuance facility, NIF) and revolving securities underwriting lines (revolving underwriting facility, RUF), regardless of the term of the underlying facility.	50
vii) Committed credit lines, regardless of the maturity of the underlying facility.	40
viii) Commitments that can be cancelled discretely and unilaterally by the financial entity, or that are automatically cancelled in the event of deterioration of the debtor's solvency.	10

Off-balance sheet items referring to commitments will be subject to the lowest CCF that results applicable.

The originator of the securitization, as well as the initial creditor of the securitized credits, must have sufficient experience in granting financings similar to those securitized.

The investor must determine the experience and performance history of the originator and the initial creditor with respect to assets substantially similar to those securitized through a suitably prolonged period. Performance must be verified for a minimum period of 5 years in the case of retail exposures that meet the definition provided in point 2.8.1. –without considering the exclusions provided there– and that meet the criterion provided in point 2.8.3.1. For the rest of the exposures, performance must be verified for 7 years. This is to avoid, for example, the creation of portfolios solely for the purpose of transferring them.

iii) State of compliance of the assets.

In order to ensure that only receivables or credit rights that are not in default are assigned to a securitization, assets in default or delinquency or obligations regarding which the originator or the trustee or the other participants in the securitization with fiduciary responsibility have evidence of a substantial increase in expected losses or that are in collection management cannot be transferred.

The originator or trustee must verify that the assets meet the following conditions:

a) The obligor has not been subject to a bankruptcy or debt restructuring process due to financial difficulties in the 3 years prior to the origination date, unless the 2-year period provided for in art. 26, item 4, of Law 25.326 applies.

b) The obligor does not have an unfavorable credit history in any public credit registry.

c) The obligor does not have an evaluation by a credit rating agency or a credit scoring that anticipates a significant risk of default.

d) The transferred receivable or credit right is not the subject of litigation between the obligor and the original creditor.

The analysis of these conditions must be carried out by the originator or trustee within the 45 days prior to the date of the transfer of the assets. At the time of the evaluation, there must be no evidence indicating the possibility of deterioration in the state of compliance of the assets.

3.2.1.2. Regulatory approach (MBA).

This approach may be used when the requirements to use the LTA approach contemplated in point 3.2.1.1. are not met.

Under the MBA approach, entities may use the information provided by the fund's regulations or applicable national legislation. Information sources are not limited to regulations and laws, as other information disclosed by the fund may also be used.

The risk-weighted assets of the fund will be the sum of:

i) Exposures registered in the fund's assets: they must be weighted assuming that the underlying portfolio has been invested up to the maximum allowed in the fund's regulations in assets subject to the highest capital requirements and then, progressively, in assets subject to lower requirements. If more than one weight could be applied to a specific exposure, the highest one must be used.

ii) Exposures in derivatives or off-balance sheet: when the underlying risk arising from these exposures is subject to risk weighting according to what is established in points 2.5. and 2.12., the notional of the position in question will be weighted as indicated there. If there is no information about the underlying, for the calculation, the total of the notional of the derivative positions will be taken. If the notional is also unknown, a conservative estimate based on the maximum notional admitted in the regulations must be used.

iii) Exposure to the fund's counterparty credit risk: it must be calculated according to the Standard Approach established in point 4.2. When the replacement cost is unknown, the notional value will be used as a conservative approximation. When the factor to apply to determine the future potential exposure is unknown, a factor of 15% will be used, which is the maximum applicable. If neither of them is known, the notional value will be multiplied by a factor of 1.15. The risk weight corresponding to the counterparty will be applied to the sum of the replacement cost and the future potential exposure, as provided for in the cited point 4.2.

Instead of calculating the credit valuation adjustment (CVA) associated with derivative exposures according to point 4.2.3., entities must multiply the exposure to counterparty credit risk by a factor of 1.5 before applying the weight corresponding to the counterparty.

When CVA is not applicable, the factor of 1.5 will not be applicable either.

3.2.1.3. Residual approach (FBA).

When neither LTA nor MBA can be used, the investment in the fund must be weighted at 1250%.

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

In operations with securities, gold, or foreign currency pending settlement (as occurs in cash-to-be-settled operations), the exposure to counterparty credit risk 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 exposure to counterparty credit risk arising from these operations and obtain information that allows intervention at the appropriate time.

Operations concluded 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 clearing houses and regulated CCPs. Swap operations that have not been settled are not included.

4.1.1. Failed DvP operations.

When the counterparty 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%

4.1.2. 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 weights established in point 2.12.

iii) Limit on the capital requirement regarding QCCPs: when the sum of the capital requirements of a financial entity for exposures with a QCCP originated in the operations and contributions made to the guarantee fund is greater than the requirement that would result from the application of point 4.3.4., this latter amount will be taken as the capital requirement.

4.3.4. Exposures to other central counterparty entities.

For the purpose of calculating the capital requirement for its exposures due to trading operations regarding CCPs that do not qualify, the financial entity must consider these CCPs as financial entities, for which purpose the provisions of point 2.12.4. apply.

Financial entities must apply a risk weight of 1250% to their contributions to the guarantee funds for defaults of CCPs that do not qualify. For these purposes, the aforementioned contributions include both those integrated and those committed that the entities must effectuate if the CCP so requests. Entities must report any other type of commitment with CCPs and their nature, so that SEFYC can determine the amount of undrawn commitments to which the risk weight of 1250% will be applied.

The uncovered portion of the exposure will retain the original counterparty risk weight, while the covered portion will be assigned the risk weight of the guarantor or credit protection provider, taking into account the following:

5.4.1. Eligible guarantors (and counter-guarantors) and credit protection providers in the risk weight substitution method. When guarantees or credit derivatives are direct, explicit, irrevocable, and unconditional, credit protection provided by the following entities will be recognized to the extent that their risk weight – in accordance with what is established in Section 2 – is lower than that of the counterparty:

i) Non-financial public sector. ii) Financial entities. iii) Reciprocal guarantee societies and public guarantee funds, registered in the records authorized by the BCRA. iv) Multilateral development banks referred to in point 2.12.3. v) International organizations to which a risk weight of 0% is assigned, in accordance with the risk weight table provided in Section 2. vi) Companies with "investment grade," according to the definition provided in item b) of subsection v) of point 5.3.1.2.

5.4.2. Proportional coverage.
When the guaranteed amount, or the amount for which credit protection is held, is lower than the risk exposure amount, and to the extent that the guaranteed and non-guaranteed parts have the same priority for collection – that is, 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 eligible guarantees/credit derivatives, and the remainder will be considered uncovered.

5.4.3. Tranche coverage.
If the financial entity transfers part of the risk of an exposure in one or more tranches to a provider(s) of protection and retains a certain degree of the risk of the exposure, and the transferred and retained risks have different degrees of priority, that entity may obtain credit protection either for the highest priority tranches for collection – such as senior positions – or for the subordinated tranches – such as first-loss positions. In such a case, what is provided in point 3.1 shall apply.

5.4.4. Deductibles.
Deductibles below which no compensation will be received in the event of a loss are equivalent to first-loss positions and must be risk-weighted at 1250%.

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Section 5. Coverage of credit risk.
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6.2.1. Capital requirement for specific risk. The capital requirement for specific risk aims to protect the entity against adverse movements in the price of a security caused by factors related to its issuer. For its calculation, only netting of opposite positions with respect to the same issue, including positions in derivatives, will be allowed.

6.2.1.1. The capital requirements for specific risk in concept of issuer risk shall be as follows:

Issuer	Capital requirement for specific risk
BCRA, National Government, provincial, municipal, and CABA governments in pesos, when their source of funds is in that currency.
Banco de Pagos Internacionales, International Monetary Fund, European Central Bank and European Community and Multilateral development banks of point 2.12.3.1.	0.25% Residual maturity ≤ 6 months; 1% Residual maturity > 6 months and ≤ 24 months; 1.6% Residual maturity > 24 months
BCRA and non-financial public sector.	8%
Other.	8%
Other sovereigns and their central banks.	8%
Financial entities.	8%
Instruments with authorized public offering issued by companies and other legal persons from the country and abroad – including currency entities, insurers, agents regulated by the CNV, and trustees of non-financial trusts.	8%
Non-financial private sector.	12%

i) The non-financial public sector category has the scope defined in Section 1 of the TO on Financing of the Non-Financial Public Sector.

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Section 6. Minimum capital for market risk.
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10.2.2.3. International opening/transparency. Individual assessments, the key elements underlying the assessments, and information on whether the issuer participated in the assessment process shall be available to the public on equal terms, unless they are private assessments. In addition, the general procedures, methodologies, and assumptions used by ECAIs to obtain ratings shall be public domain.

10.2.2.4. Disclosure.
ECAIs shall disclose the following information: their code of conduct; the general nature of their remuneration agreements with assessed entities; their evaluation methods, including the definition of default, the time horizon, and the meaning of each rating; the default rates actually recorded in each evaluation category and the transition between ratings – that is, the probability of migrating between ratings.

10.2.2.5. Resources.
ECAIs must have sufficient resources to be able to perform high-quality credit assessments. These resources must allow them to be in permanent contact with the Board of Directors and Senior Management, as well as with the operational management, of the assessed entities, in order to add value to their credit assessments. Such assessments must be based on methodologies that combine qualitative and quantitative approaches.

10.2.2.6. Credibility.
The credit assessments of ECAIs must be reliable for independent third parties. In addition, the existence of internal procedures intended to prevent the misuse of confidential information contributes to the credibility of an ECAI. To be recognized, it is not a requirement that an ECAI evaluate companies in more than one country.

10.2.3. Admitted ratings: only global (international) ratings will be admitted.

10.3. Considerations for their implementation.

10.3.1. Rating assignment process (mapping).

10.3.1.1. The ratings of eligible ECAIs shall be assigned to the risk weights provided in the points referred to in the first paragraph of point 2.5.4.; that is, financial entities must establish which ratings or evaluation categories correspond to those risk weights. The assignment (mapping) process must be objective and offer a distribution of risk weights coherent with the distribution of credit risk levels collected in those ratings. In addition, it must cover all risk weights provided in those points.

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Section 10. External Credit Assessment Institutions (ECAI).
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12.1. Financial entities in operation as of 01/06/24 shall observe the basic capital requirement provided in the table of point 1.2 – according to the corresponding category – starting from 01/01/25. From 01/06/24 until 31/12/24, such operating entities shall apply the requirements arising from the following table:

Period	Banks	Other entities (except Credit Unions and Cooperatives)
01/06/24 to 31/12/24	1,500	700

(Amounts in millions of pesos)

Financial entities in operation as of 01/06/24 that do not comply with the integration of the basic capital requirement as provided in the preceding paragraph and/or the basic capital requirement from 01/01/25 according to their business plan and projections and capital self-assessment report shall submit to the SEFYC a compliance program within 20 calendar days following the registration or projection of non-compliance, respectively, which shall not exceed a 6-month term to comply with the basic requirement.

12.2. From 01/01/25 until 31/12/25, financial entities classified in group 2 as provided in Section 2 that as of 01/01/25 belong to groups B and C – based on what is established in Section 4 of the TO on Authorities of Financial Entities – shall convert "commitments that can be cancelled discretely and unilaterally by the financial entity, or that are cancelled automatically in the event of deterioration of the debtor's solvency" into credit equivalents by applying the CCFs according to the following schedule:

Period	CCF
01/01/25 to 30/06/25	0%
01/07/25 to 31/12/25	5%

B.C.R.A. MINIMUM CAPITAL OF FINANCIAL ENTITIES
Section 12. Transitional provisions.
Version: 3rd. COMMUNICATION “A” 8171 Effective: 01/01/2025

ORIGIN OF THE PROVISIONS CONTAINED IN THE CODIFIED TEXT ON MINIMUM CAPITAL OF FINANCIAL ENTITIES

OBSERVATIONS	Section	Point	Paragraph	Com.	Cap./Sec.	Annex	Point	Paragraph
1.	1.1.	“A” 2136	1.	1°	According to Com. “A” 2859, 3558, 5272, 5369, 5580 and 5867.
	1.2.	“A” 2241			CREFI-2 I
	1.3.1.	According to Com. “A” 4368, 4771, 5168, 5351, 5355, 5983, 6260, 7470, 7524 and 8028.
	1.3.	“A” 2136	2.	1°	According to Com. “A” 2223 and 7524. Includes regulatory clarification.
	1.4.1.	“A” 2136	3.1.
	1.4.2.1.	“A” 3171	According to Com. “A” 3959.
	i)	“A” 2136	3.2.	2°	According to Com. “A” 3959.
	ii)	“A” 2136	3.2.4.	According to Com. “A” 2241, 4771 and 6275.
	iii)	“A” 414	LISOL-1 VI 6.1.
	1.4.2.2.	“A” 3171	According to Com. “A” 3959.
2.	1°	“A” 8067	1.
	2°	“A” 8067	1.
	3°	“A” 8067	1.
	2.1.	“A” 2136	1.	According to Com. “A” 2541, 2736, 2938, 3039, 3307, 3959, 4598, 4702, 4741, 4742, 4961, 4996, 5180, 5369 (Annex I), 5580, 5867, 6128, 6260, 6327, 6639, 6663, 6690, 7311, 8171 and “B” 9745.
	2.2.1.	“A” 2136	I	According to Com. “A” 2541 (annex, criteria, d, 2nd paragraph).
	2.2.2.	“A” 2287	5.	According to Com. “A” 5369 (Annex I).
	2.2.3.	“A” 2412	According to Com. “A” 3959, 5369 (Annex I), 5671 and 5740.
	2.3.	“A” 2740	I	3.4.	According to Com. “A” 5369 (Annex I).
	2.3.1.	“A” 2768	2.	According to Com. “A” 2948, 3911, 3925, 3959, 4180, 5369 (Annex I), 5831, 6851, 7443, 8067 and “B” 9074.
	2.3.2.	“A” 2227	único	5.2.2.	3°
	2.4.	“A” 8067	1.
	2.5.1.	“A” 2136	1.1.	According to Com. “A” 5369 (Annex I), 6260 and 8067.
	2.5.2.	“A” 2136	I	According to Com. “A” 2541, annex, criteria, g), 5369 (Annex I) and 5580.
	2.5.3.	“A” 8067	1.
	2.5.4.	“A” 6004	4.	According to Com. “A” 6344 and 8067.
	2.5.5.	1°	“A” 5369	I
		2°	“A” 8067	1.
		3°	“A” 5580	According to Com. “A” 5831, 6327 and 6639.
		4°	“A” 5580
	2.5.6.	“A” 5369	I
	2.5.7.	“A” 5580	According to Com. “A” 8067.
	2.5.8.	“A” 5580	According to Com. “A” 7545.
	2.5.9.	“A” 5369	I	According to Com. “A” 5821.
	2.5.10.	“A” 5580
	2.5.11.	“A” 5369	I	According to Com. “A” 5580.
	2.6.	“A” 8067	1.
	2.6.1.	1°	“A” 8067	1.
		2°	“A” 5369	I	According to Com. “A” 8067.
	2.6.2.	“A” 8067	1.
	2.6.3.	“A” 8067	1.
	2.7.	“A” 8067	1.
	2.7.1.	i)	“A” 5369	I	According to Com. “A” 5580 and 8067.
		ii)	“A” 8067	1.
		último	“A” 5369	I	According to Com. “A” 5580 and 8067.
	2.7.2.	“A” 8067	1.
	2.8.	“A” 8067	1.
	último	“A” 5580	I	According to Com. “A” 8067. Includes interpretative clarification.
	2.8.1.	i)	“A” 5369	I
		ii)	“A” 5369	I	According to Com. “A” 8067.
		último	“A” 5369	I	According to Com. “A” 8067.
	2.8.2.	“A” 8067	1.
	2.8.3.	“A” 8067	1.
	2.8.3.1.	“A” 5369	I	According to Com. “A” 8067.
	2.8.3.2.	1°	“A” 5369	I	According to Com. “A” 8067.
		2°	“A” 5580	I	According to Com. “A” 5831 and 8067.
		3°	“A” 8067	1.
	2.8.3.3.	“A” 5369	I	According to Com. “A” 5831, 6489, 6531, 6586 and 8067.
	2.8.3.4.	“A” 5580	According to Com. “A” 8067.
	2.9.	“A” 8067	1.
	2.9.1.	“A” 8067	1.
	2.9.2.1.	“A” 5369	I	According to Com. “A” 6004 and 8067.
	2.9.2.2.	“A” 8067	1.
	2.9.2.3.	“A” 8067	1.
	2.9.2.4.	“A” 8067	1.
	2.9.2.5.	“A” 8067	1.
	2.9.2.6.	“A” 8067	1.
	2.9.2.7.	“A” 8067	1.
	2.9.2.8.	“A” 8067	1.
	2.10.	“A” 8067	1.
	2.11.	“A” 8067	1.
	2.11.1.	“A” 8067	1.
	2.11.2.	“A” 8067	1.
	2.11.3.	“A” 8067	1.
	2.12.	“A” 5369	I	According to Com. “A” 6260.
	2.12.1.	“A” 5369	I
	2.12.1.1.	“A” 5369	I
	2.12.1.2.	“A” 5369	I
	2.12.1.3.	“A” 5369	I	According to Com. “A” 6690 and 8067.
	2.12.1.4.	“A” 5369	I
	2.12.2.	“A” 5369	I
	2.12.2.1.	“A” 5369	I	According to Com. “A” 5580.
	2.12.2.2.	“A” 5369	I	According to Com. “A” 5580 and 5831.
	2.12.2.3.	“A” 5369	I	According to Com. “A” 6024 and 6221.
	2.12.2.4.	“A” 5369	I	According to Com. “A” 6004.
	2.12.2.5.	“A” 5369	I	According to Com. “A” 6004.
	2.12.2.6.	“A” 6004	4.
	2.12.2.7.	“A” 5369	I	According to Com. “A” 6004 and 8067.
	2.12.2.8.	“A” 6270	According to Com. “A” 8067.
	2.12.3.	“A” 5369	I
	2.12.3.1.	“A” 5369	I	According to Com. “A” 5831 and 8067.
	2.12.3.2.	“A” 5369	I	According to Com. “A” 6344 and 8067.
	2.12.4.	“A” 5369	I	According to Com. “A” 6004 and 8067.
	2.12.4.1.	“A” 8067	1.
	2.12.4.2.	i)	“A” 5369	I	According to Com. “A” 8067.
		ii)	“A” 5369	I	According to Com. “A” 6004, 6006 and 8067.
	2.12.5.	“A” 5369	I	According to Com. “A” 5580 and 8067.
	2.12.6.	“A” 5369	I	According to Com. “A” 5580, 6221 and 8067.
	2.12.7.	“A” 5369	I
	2.12.8.	“A” 5369	I	According to Com. “A” 6004 and 8067.
	último	“A” 8067	1.
	2.12.8.1.	“A” 5369	I	According to Com. “A” 8067.
	2.12.8.2.	“A” 5369	I	According to Com. “A” 8067.
	2.12.8.3.	“A” 8067	1.
	2.12.9.	“A” 5369	I	According to Com. “A” 8067.
	2.12.10.	“A” 5369	I	According to Com. “A” 8067.
	2.12.11.	“A” 5369	I
	2.12.12.	“A” 5580	I
	2.12.13.	“A” 5369	I
	2.12.14.	“A” 5369	I	According to Com. “A” 5821.
	2.12.15.	“A” 5369	I
	2.12.16.	“A” 6940	According to Com. “A” 7407.
	2.12.17.	“A” 5369	I	According to Com. “A” 5580.
	2.13.	“A” 5369	I	According to Com. “A” 5831 and 8067.
3.	3.1.	“A” 5369	I	According to Com. “A” 6004 and 6433.
	3.1.1.	“A” 5369	I	According to Com. “A” 6433.
	3.1.2.	“A” 5369	I
	3.1.2.1.	“A” 5369	I	According to Com. “A” 5580 and 6433.
	3.1.2.2.	“A” 5369	I	According to Com. “A” 6260 and 6433.
	3.1.3.	1°	“A” 6433	I
			“A” 5369	I	According to Com. “A” 6433.
		último	“A” 5369	I	According to Com. “A” 5580 and 6433.
	3.1.4.	“A” 5369	I	According to Com. “A” 5831 and 6433.
	3.1.5.	“A” 5369	I	According to Com. “A” 5831, 6327 and 6433.
	3.1.6	“A” 5369	I	According to Com. “A” 6433.
	3.1.7.	“A” 6433	I
	3.1.8.	“A” 5369	I	According to Com. “A” 5831 and 6433.
	3.1.9.	“A” 6433	I
	3.1.10.	“A” 5369	I	According to Com. “A” 5580, 6327, 6433 and 6470.
	3.1.11.	“A” 6433	I
	3.1.12.	“A” 6433	I
	3.1.13.	“A” 6433	I
	3.1.14.	“A” 6433	I
	3.1.14.2.	vi)	“A” 6433	I	According to Com. “A” 6470.
	3.2.	“A” 6108
4.	4.1.	“A” 5369	I	According to Com. “A” 5580 and 5821.
	4.1.1.	“A” 5369	I
	4.1.2.	“A” 5369	I
	4.2.	“A” 5369	I	According to Com. “A” 6146.
	4.2.1.	1° and 2°	“A” 5369	I	According to Com. “A” 5580 and 6146.
	4.2.1.1.	“A” 5369	I	According to Com. “A” 5821 and 6146.
	4.2.1.2.	“A” 5821	1.	According to Com. “A” 6146.
	4.2.1.3.	“A” 6146
	4.2.2.	1° and 2°	“A” 5369	I
		3°	“A” 5369	I	According to Com. “A” 5580, 5671, 5740 and 5821.
		4° to 6°	“A” 5821	2.
	4.2.3.	“A” 5369	I	According to Com. “A” 6146.
	4.2.4.	“A” 5369	I	According to Com. “A” 5580, 6146 and 6260.
	4.3.	“A” 5821	2.	According to Com. “A” 6147.
	4.3.1.	“A” 5821	2.	According to Com. “A” 6147, 6762 and 7979. Includes interpretative clarification.
	4.3.2.	“A” 5821	2.	According to Com. “A” 6147.
	4.3.3.	“A” 5821	2.	According to Com. “A” 6147.
	4.3.4.	“A” 5821	2.	According to Com. “A” 6147.
5.	1°	“A” 5369	II	According to Com. “A” 8066.
	2°	“A” 8066	1.
	5.1.	“A” 8066	1.
	5.1.1.	“A” 5369	II	According to Com. “A” 5580, 5867 and 8066. Includes interpretative clarification.
	5.1.2.	“A” 8066	1.
	5.2.	“A” 5369	II	According to Com. “A” 8066.
	5.2.1.	“A” 5369	II	According to Com. “A” 8066.
	5.2.1.1.	“A” 5369	II
	5.2.1.2.	“A” 5831	According to Com. “A” 8066.
	5.2.1.3.	“A” 5369	II
	5.2.1.4.	“A” 5369	II	According to Com. “A” 5580 and 8066.
	5.2.1.5.	“A” 5831	According to Com. “A” 8066.
	5.2.1.6.	“A” 8066	1.
	5.2.2.	“A” 5369	II	According to Com. “A” 8066.
	5.2.2.1.	“A” 5369	II
	5.2.2.2.	“A” 5369	II
	5.2.2.3.	“A” 5369	II	According to Com. “A” 5831.
	5.2.2.4.	“A” 5369	II	According to Com. “A” 8066.
	5.2.2.5.	“A” 8066	1.
	5.2.2.6.	“A” 8066	1.
	5.2.3.	“A” 8066	1.
	5.2.3.1.	“A” 5369	II
	5.2.3.2.	“A” 5369	II
	5.2.3.3.	“A” 5369	II	According to Com. “A” 5813 and 8066.
	último	“A” 5831	According to Com. “A” 8066.
	5.3.	“A” 5369	1.	According to Com. “A” 8066.
	5.3.1	“A” 5369	II	According to Com. “A” 8066.
	5.3.1.1.	“A” 5369	II	According to Com. “A” 5580 and 8066.
	5.3.1.2.	“A” 5369	II	According to Com. “A” 6004, 6690 and 8066.
	5.3.1.3.	“A” 5369	II	According to Com. “A” 5580 and 8066.
	5.3.1.4.	“A” 5369	II	According to Com. “A” 5580 and 8066.
	5.3.2.	“A” 5369	II	According to Com. “A” 8066.
	5.3.2.1.	“A” 5369	II	According to Com. “A” 5580 and 8066.
	5.3.2.2.	“A” 5369	II	According to Com. “A” 5580 and 8066.
	5.3.2.3.	“A” 5369	II	According to Com. “A” 5580, 5831 and 8066.
	5.3.2.4.	“A” 5369	II	According to Com. “A” 5580 and 8066.
	5.3.2.5.	“A” 5821	4.	According to Com. “A” 8066.
	5.4.	“A” 5369	II	According to Com. “A” 5580, 6433 and 8066.
	5.4.1.	“A” 5369	II	According to Com. “A” 6344 and 8066.
	5.4.2.	“A” 5369	II	According to Com. “A” 5580.
	5.4.3	“A” 5831
	5.4.4.	“A” 5369	II	According to Com. “A” 5580 and 5831.
	5.4.5.	1°	“A” 5369	II	According to Com. “A” 5580, 6433 and 8066.
		2°	“A” 5831	According to Com. “A” 8066.
		3°	“A” 5831
		4°	“A” 5831	According to Com. “A” 5580 and 8066.
	5.4.6.	“A” 5369	II	According to Com. “A” 5580, 5831 and 8066.
6.	6.1. and 6.2.	“A” 5867	1.	According to Com. “A” 6663, 6690 and 8108.
	6.2.1.2.	“A” 5867	1.	According to Com. “A” 6433.
	6.3.	“A” 5867	1.	According to Com. “A” 6690.
	6.4.	“A” 5867	1.	According to Com. “A” 6488 and 6690.
	6.5.	“A” 6663	5.
	6.6.	“A” 5867	1.	According to Com. “A” 6663 and 6690.
	6.7.	“A” 2461	único	III	According to Com. “A” 3161, 4172, 5272, 5867 and 6690.
	6.8. to 6.10.	“A” 5867	1.	According to Com. “A” 6690.
	6.11.	“A” 2461	único	VI	According to Com. “A” 4172, 6690 and 6832.
	6.12.	“A” 5867	1.	According to Com. “A” 6690.
7.	7.1.	“A” 5272	2.	According to Com. “A” 6327.
	7.2.	“A” 5737	2.	According to Com. “A” 5746, 6260, 6475 (point 4.), 6633, 7108 and 7143.
	7.3.	“A” 5272	2.	According to Com. “A” 5369, 5580, 5737 and 5867.
8.	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, 5369 (Annex I), 6327, 6396 and 6428.
	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
	8.3.2.	“A” 4576	2.	According to Com. “A” 4591 (points 2. to 5.), 4665, 4782 and 5369 (Annex I).
	anteúltimo	“A” 5369	I	According to Com. “A” 5831.
	último	“A” 5831
	8.3.2.2.	“A” 4576	2.	According to Com. “A” 4665, 5369 (Annex I) and 5831.
	8.3.2.7.	“A” 4576	2.	According to Com. “A” 4591 (point 2.), 4665, 5369 (Annex I) and 5831.
	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
	8.3.4.1.	“A” 5369	I	According to Com. “A” 5831.
	8.3.4.4.	“A” 5369	I	According to Com. “A” 5831.
	8.3.5.	“A” 5369	I
	8.4.1.	“A” 5369	I
	8.4.1.1.	“A” 6851	b.	According to Com. “A” 7443. Includes regulatory clarification.
	8.4.1.2.	“A” 4296	2.	According to Com. “A” 4576, 4665, 5369 (Annex I) and 6327.
	8.4.1.3.	“A” 2287	3.	3.1. and 3.3. último	According to Com. “A” 2890, 4172, 5093, 5671 and 5740.
	8.4.1.4.	1º	“A” 2497	1.	According to Com. “A” 3621, 4172, 5183, 5831 and 6628.
		último	“A” 2263	2.	According to Com. “A” 4172 and 6327.
	8.4.1.5.	1º and último	“A” 2287	3.2.	According to Com. “A” 4172 and 5671.
		2º	“A” 2474		Norms of procedure on requirement and integration of minimum capital (point 3.2.7.). Modified by Com. “A” 4172.
	8.4.1.6.	“A” 2264	1.	According to Com. “A” 4172, 4576 (point 7.), 5369 (Annex I) and 5831.
	8.4.1.7.	“A” 414	LISOL-1 VI 3.2.	According to Com. “A” 4172.
	8.4.1.8.	“A” 2730	According to Com. “A” 4172.
	8.4.1.9.	“A” 2545	According to Com. “A” 4172, 5369 (Annex I) and 6327.
	8.4.1.10.	“A” 414	LISOL-1 VI 3.2.	According to Com. “A” 4172.
	8.4.1.11.	“A” 2287	4.	According to Com. “A” 4172.
		“A” 2607	1.	Includes regulatory clarification.
	8.4.1.12.	“A” 2893	1.	According to Com. “A” 4172, 6851 and 7443.
	8.4.1.13.	“A” 6851	a.	According to Com. “A” 7443.
	8.4.1.14.	“A” 3087	According to Com. “A” 4172, 5369 (Annex I), 5700 and 6277.
	8.4.1.15.	“A” 4725	6.
	8.4.1.16.	“A” 5069	2.
	8.4.1.17.	“A” 5369	I	According to Com. “A” 6433.
	8.4.1.18.	“A” 5369	I
	8.4.1.19.	“A” 414	LISOL-1 VI 3.2.	According to Com. “A” 4172, 4539, 4665 and 5369 (Annex I).
		“A” 1215			Specifications of the items of participations in non-deductible financial entities to determine the computable equity liability. According to Com. “A” 4172.
	8.4.2.	“A” 5369	I
	8.4.2.1.	“A” 5369	I	According to Com. “A” 5831.
	8.4.2.2.	“A” 5369	I	According to Com. “A” 5580 and 5831.
	8.4.2.3.	“A” 5831
	8.5.	“A” 5369	I	According to Com. “A” 5867.
	8.6.	“A” 414	LISOL-1 VI 3.4.	According to Com. “A” 1858, 4172, 4631, 4652, 5369 (Annex I), 6260, 6304 and “B” 9186.
	8.7.	“A” 4652	2.	According to Com. “A” 6327.
9.	9.1.	“A” 2227	único	5.2.1. último	According to Com. “A” 2649 and 4172.
	9.2.	“A” 2227	único	5.1.1., 5.1.7. and 5.2.2.	According to Com. “A” 2461, 2649, 4172, 5272, 5369 and 5867.
	último	“A” 6723	1.	According to Com. “A” 7393.
10.	10.1.	“A” 6004	único	According to Com. “A” 6343.
	10.2.	“A” 6004	único	According to Com. “A” 6343.
	10.3.	“A” 6004	único	According to Com. “A” 6343.
11.	11.1.	“A” 3985	According to Com. “A” 4172.
	11.2.	“A” 3985	According to Com. “A” 4172.
	11.3.	“A” 5369	8.	According to Com. “A” 5580.
	11.4.	“A” 6938	12.	According to Com. “A” 7007 and 7928.
	11.5.	“A” 7018	5.	According to Com. “A” 8121
	11.6.	“A” 7545	1.
12.	12.1.	1°	“A” 7470	2.	According to Com. “A” 7524 and 8028.
		2°	“A” 7470	3.	According to Com. “A” 7524 and 8028.
	12.2.	“A” 8067

Retail deposits are defined as those made by a natural person. Deposits made by a micro, small, or medium-sized enterprise (MSME) – in accordance with the definition provided in the Ordered Text on Determination of Micro, Small, and Medium Enterprise Status – and managed as retail exposures are considered to have interest rate risk characteristics similar to those of retail accounts, and therefore may be treated as retail deposits, provided that the total liabilities captured from the MSME are less than the amount established in item ii) of point 2.8.3.3. of the Ordered Text on Minimum Capital of Financial Entities.

Retail deposits are considered transactional accounts when operations are carried out regularly in such accounts (for example, when salaries are regularly credited) or when the deposit does not accrue interest. The remaining retail deposits must be considered non-transactional accounts.

Deposits made by legal entities – excluding those that can be treated as retail deposits – are grouped into the wholesale deposits category.

b) Stable and non-stable, basic and non-basic NMD.

For each category of NMD – retail and wholesale – a distinction must be made between the stable and non-stable portion, considering the variations in amounts observed over the last 10 years.

The stable segment of NMD is that which is not withdrawn with a high degree of probability. Basic deposits are the portion of stable NMD that is unlikely to be repriced, even in the presence of significant changes in interest rates. The remaining deposits – that is, the non-stable ones and the stable ones that are not basic – constitute the non-basic NMD.

The volume of basic deposits must be estimated separately for retail and wholesale deposits, and the results must subsequently be summed to determine the total volume of basic deposits, subject to the maximum limits established in the table in subsection c) of this section.

c) Allocation of cash flows.

NMD must finally be allocated to the appropriate time band or mid-point of the time band. Non-basic deposits must be considered one-day deposits and, consequently, allocated to the one-day time band or its mid-point.

B.C.R.A.
GUIDELINES FOR RISK MANAGEMENT
IN FINANCIAL ENTITIES
Section 5. Management of interest rate risk in the investment portfolio.
Version: 3rd COMMUNICATION “A” 8171 Effective Date:
01/01/2025 Page 24

B.C.R.A.
ORIGIN OF THE PROVISIONS CONTAINED IN THE ORDERED TEXT ON GUIDELINES FOR RISK MANAGEMENT IN FINANCIAL ENTITIES

ORDERED TEXT	ORIGIN STANDARD	OBSERVATIONS
Section	Point	Para.	Comm.	Chap.	Point	Para.
1.
1.1.	“A” 5203						According to Comm. “A” 5398.
1.2.	“A” 5203						According to Comm. “A” 5867, 6327 and 6131.
1.3.	“A” 5398
1.3.2.	“A” 5398						According to Comm. “A” 6459 (point 1.).
1.3.2.1.	“A” 6397
2.
1.3.2.2.	“A” 6459	1.
1.3.2.3.	“A” 6459	1.					According to Comm. “A” 6475, 6534, 7108 and 7143.
1.3.3.	“A” 6459	2.					According to Comm. “A” 6475, 6534, 7108 and 7143.
1.4.	“A” 5203						According to Comm. “A” 5398 and 6327.
1.5.	“A” 5203						According to Comm. “A” 5398.
2.
2.1.	“A” 5203						According to Comm. “A” 5398 and 6639.
2.2.	“A” 5203						According to Comm. “A” 5398.
2.3.	“A” 5203						According to Comm. “A” 5398, 6327 and 6639.
2.4.	“A” 5398
2.4.1.	“A” 5398
2.4.2.	“A” 5398
2.4.3.	“A” 5398
2.4.4.	“A” 5821	5.
2.4.5.	“A” 5398						According to Comm. “A” 5821.
2.4.6.	“A” 5398						According to Comm. “A” 6639.
2.5.	“A” 5398						According to Comm. “A” 5831.
2.6.	“A” 5398						According to Comm. “A” 6327.
2.7.	“A” 5203						According to Comm. “A” 5398.
2.7.1.	“A” 5203						According to Comm. “A” 5398 and 7404.
3.
3.1.	“A” 5203						According to Comm. “A” 6107.
3.2.	“A” 5203						According to Comm. “A” 5398.
3.3.	“A” 5203						According to Comm. “A” 5398, 6107, 6685 and 6729.
3.4.	“A” 5203
3.5.	“A” 6685	1.
4.
4.1.	“A” 5203						According to Comm. “A” 5398.
4.2.	“A” 5203
4.3.	“A” 5203						According to Comm. “A” 5398.
4.4.	“A” 5203						According to Comm. “A” 5398.
5.
5.1.	“A” 5203						According to Comm. “A” 5398 and 6397.
5.2.	“A” 5203						According to Comm. “A” 5398 and 6397.
5.3.	“A” 5203						According to Comm. “A” 5398 and 6397.
5.4.	“A” 6397	1.
5.4.2. 2°	“A” 6397	1.					According to Comm. “A” 6475, 6534, 7108 and 7143.
5.4.2.3. i)	“A” 6397						According to Comm. “A” 6729 and 8171.
5.4.2.3. ii)	“A” 6397	1.					According to Comm. “A” 6475, 6534, 7108 and 7143.

3.2.4. Traditional off-balance sheet commitments of the investment portfolio.

Off-balance sheet items must be converted into credit risk equivalent exposures using the credit conversion factors (CCF) provided in point 2.13. of the Ordered Text on Minimum Capital of Financial Entities, with a minimum limit of 10%.

3.3. Credit Risk Coverage (CRC).

The CRC techniques admissible for calculating risk exposures are those that satisfy the minimum requirements and admission criteria established in Section 5. of the Ordered Text on Minimum Capital of Financial Entities for the recognition of coverage provided by assets, personal guarantees, and credit derivatives.

To calculate the risk exposure, financial entities may only employ CRC techniques that they would have used to calculate the capital requirement, provided that, in addition, they meet the conditions for recognition as provided in these provisions.

3.3.1. Maturity mismatch treatment.

Coverages with maturity mismatch will only be recognized when the original term of the coverage is equal to or greater than 1 year and its residual term is not less than 3 months.

The adjustment of the credit protection for the purpose of calculating risk exposures will be determined by the method provided in point 5.4.5. of the cited Ordered Text.

3.3.2. Recognition of CRC techniques.

Financial entities must reduce the initial exposure value vis-à-vis the counterparty by the amount of the admissible CRC technique recognized for capital requirement purposes. The recognized amount will be:

3.3.2.1. the protected portion in the case of personal guarantees (excluding those granted by the non-financial public sector) and credit derivatives – which are not collateralized with deposited funds –;

3.3.2.2. the protected portion by the market value of assets admitted as collateral, when the entity uses the simple approach or the substituting weights approach for capital requirement purposes;

3.3.2.3. the value of the asset admitted as collateral calculated for the purpose of calculating the counterparty credit risk exposure for OTC derivatives and any other financial instrument subject to such risk;

3.3.2.4. the value of the asset admitted as collateral adjusted after applying the haircuts of point 5.3.2.3. of the Ordered Text on Minimum Capital of Financial Entities, when the entity applies the comprehensive approach.

B.C.R.A.
LARGE EXPOSURES TO CREDIT RISK
Section 3. Calculation of exposure values.
Version: 4th COMMUNICATION “A” 8171 Effective Date:
01/01/2025 Page 2

LARGE EXPOSURES TO CREDIT RISK

ORDERED TEXT	ORIGIN STANDARD	OBSERVATIONS
Sec.	Point	Para.	Comm.	Annex	Chap.	Sec.	Point	Para.
2.
2.5.2.2.	“A” 2140	II	3.4.					According to Comm. “A” 5472, 5496, 5671, 5740, 6599 and 6978. Includes interpretative clarification.
2.5.3.1.	“A” 2140	II	2.1.					According to Comm. “A” 5472 and 6599.
2.5.3.2. i)	“A” 2140	II	2.2. 1°					According to Comm. “A” 5472 and 6599.
ii), 1°	“A” 2140	II	2.2. 1°					According to Comm. “A” 5472 and 6599.
ii), 2°	“A” 2252	3.	1°
2.6.	“A” 2140	I	5.					According to Comm. “A” 5472 and 6599.
2.6.1.	“A” 2140	I	5.					According to Comm. “A” 5472, 5671 and 6599.
2.6.2.	“A” 3901	II	1.1.					According to Comm. “A” 6599.
2.7.	“A” 5193							According to Comm. “A” 5472.
2.8.1.	“A” 6599							According to Comm. “A” 6620.
2.8.2.	“A” 6599
3.
3.1.	“A” 6599							According to Comm. “A” 6620.
3.2.	“A” 6599							According to Comm. “A” 8109 and 8171.
3.3.	“A” 6599							According to Comm. “A” 6639 and 8109. Includes normative interpretation.
3.4.	“A” 6599
4.
4.1.	“A” 6599
4.2.	“A” 6599
4.3.	“A” 6599
4.4.	“A” 6599
5.
5.1.	“A” 49	OPRAC-1	I	4.4.1.				Includes interpretative clarifications. According to Comm. “A” 5472.
5.1.3.	“A” 49	OPRAC-1	I	4.4.1.				Includes interpretative clarifications. According to Comm. “A” 5472 and 7404.
5.2.	“A” 49	OPRAC-1	I	4.4.2.
5.3.1.	“A” 2573	1.						According to Comm. “A” 3051 (Annex, point 1.4.1.).
5.3.2.	“A” 5472
6.
6.1.	“A” 2649	1.						According to Comm. “A” 6599.
6.2. 1°	“A” 2227	único	5.1.2., 5.1.3., 5.2.1. and 5.2.2.					According to Comm. “A” 2649 (point 1.) and 6599.
2°	“A” 6599							According to Comm. “A” 6723 1.

In all cases, the corresponding budgetary allocation of the guarantee must be available through a general budget law, a specific law, or an equivalent norm, as applicable, in accordance with the nature of the asset subject to the guarantee, and in the particular case of entities or companies in the non-financial public sector not covered by the aforementioned requirement – based on the nature of their revenues – to allocate such resources as guarantee, they must have the authorization of their board of directors or equivalent authority with decision-making powers regarding their indebtedness.

Financial entities may acquire public securities issued in pesos by the central administration of the provincial, municipal, and/or CABA non-financial public sector, which do not have any of the guarantees provided for in this point, provided they comply with the remaining requirements provided for in this section and what is established in point 2.12.2.8. of the Ordered Text on Minimum Capital of Financial Entities and the basic global limit provided for in point 6.1.2.1. – item b) –, without prejudice to the other limits provided for in matters of credit risk fragmentation.

4.1.2. There is express approval of the financing or intervention in its analysis by the Ministry of Economy of the Nation, as applicable, in accordance with the legal, regulatory, or procedural norms that that state department must observe in the matter.

4.1.3. Compliance with the information regime on loans to the non-financial public sector is verified according to the “SISCEN-0011” task of the “Sistema CENtralizado de requerimientos informativos de la Subgerencia de Estadísticas Monetarias y Financieras” (Centralized Information Requirements System of the Sub-Department of Monetary and Financial Statistics), by the financial entities granting the assistance, including entities that may eventually become assignees as a result of secondary negotiations.

4.1.4. The annual debt service – principal, interest, and accessories – must not exceed 15% of the current resources of that period of the provincial or municipal jurisdiction or of the Autonomous City of Buenos Aires (CABA), calculated in accordance with the criterion provided for in the Fiscal Responsibility Law (Law 25.917 and amendments), regardless of whether the jurisdiction in question is or is not adhered to the aforementioned regime.

In the case of fiscal years in which the application of article 21 of the aforementioned law is suspended and/or when the situation provided for in article 22 of the Fiscal Responsibility Law arises, the limit fixed in the preceding paragraph will be 20%.

The requirement provided for in this point will not be required for operations with pledge or financial leasing (leasing) guarantee on goods and/or operations registrable before the Motor Property Registries.

4.2. Particular requirements.

When it comes to financing operations in which the intervening financial entities are expressly indicated – such as loans, credit by financial leases, or others – the aforementioned entities and the non-financial public sector jurisdiction in question must provide their respective official email addresses, which must be stated in the presentation made to this Institution – in accordance with what is provided in point 4.1.2.–. This is for the purpose of sending them, if applicable, the notification of the exception granted.

B.C.R.A.
FINANCING OF THE NON-FINANCIAL PUBLIC SECTOR
Section 4. Exceptions.
Version: 9th COMMUNICATION “A” 8171 Effective Date:
01/01/2025 Page 3

ORDERED TEXT	ORIGIN STANDARD	OBSERVATIONS
Section	Point	Para.	Comm.	Annex	Point	Para.
1.
1.1.	“A” 3054	único	1.1.				According to Comm. “A” 4798, 4838 (point 12.) and 4937.
1.2.	“A” 4527						According to Comm. “A” 4581, 5154, 5243, 5301, 8163, “C” 51182 and “B” 9745.
2.
2.1.	“A” 3054	único	2.1.				According to Comm. “A” 4937, 5062, 5154, 5472, 6635 and “B” 9745. Includes interpretative clarification.
2.2.	“A” 3054	único	2.2.
3.
3.1.	“A” 3054	único	3.1.				According to Comm. “A” 5067 and 6635.
3.1.3.	“A” 3054	único	3.1.3.				According to Comm. “A” 5067, 5520 and 6978.
3.1.7.	“A” 3054	único	3.1.7. and 3.1.8.				According to Comm. “A” 5067, 5520 and 6327.
3.1.8.	“A” 4725	2.					According to Comm. “A” 5520, 6327 and 6635.
3.1.9.	“A” 3054	único	3.1.9.				According to Comm. “A” 5520 and 6635.
3.1.10.	“A” 6396	5.
3.1.11.	“A” 3054	único	3.1.10.				According to Comm. “A” 5520 and 6635.
3.2.	“A” 3054	único	3.2.				According to Comm. “A” 4838, 4932, 4937 (points 2. and 3.), 4996 (point 1.), 5015 (annex), 5062, 5069, 5125, 5368, 5393, 5521, 5671, 5740, 5991, 6635 and “B” 9745.
3.2.4.8.	“A” 4932	1.					According to Comm. “A” 4937 (point 3.), 5520, 6635, 7311 and “B” 9745.
3.2.4.10.	“A” 4937	único	6. and 7.				According to Comm. “A” 4996 (point 1.), 5015, 5520, 6635 and “B” 9745.
3.2.5.1.	“A” 5069	1.					According to Comm. “A” 5125, 5991 and 6035.
3.2.8.	“A” 6337						According to Comm. “A” 6637.
3.2.9.	“A” 6449	1.
3.2.10.	“A” 7341	3.
3.2.11.	“A” 7341	3.
3.2.12.	“A” 7900						According to Comm. “A” 7913.
4.
4.1.	“A” 3054						According to Comm. “A” 6635.
4.1.1.	“A” 3054	único					According to Comm. “A” 3548, 3911 (point 9., item c), 6270, 6816 and 8171.
4.1.1.1.	“A” 3054	único					According to Comm. “A” 3911 (point 9., item b), 4798, 6270 and “B” 9745.
4.1.1.2.	“A” 4798						According to Comm. “A” 4947.
4.1.1.3.	“A” 4798
4.1.2.	“A” 3054	único					According to Comm. “A” 4718, 6270 and “B” 9745.
4.1.3.	“A” 3054	único					According to Comm. “A” 3144 and 5062.
4.1.4.	“A” 6270						According to Comm. “A” 6485 and 7913.
4.2.	“A” 6240						According to Comm. “A” 6635.

B.C.R.A.
ORIGIN OF THE PROVISIONS CONTAINED IN THE ORDERED TEXT ON FINANCING OF THE NON-FINANCIAL PUBLIC SECTOR