Circular LISOL 1-145. CONAU 1-203. Minimum Capital of Financial Entities. Procedural Rules.

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMUNICACIÓN "A" 2474 03/10/96
TO FINANCIAL ENTITIES:
Ref.: Circular LISOL 1 - 145. CONAU 1 - 203. Minimum Capital of Financial Entities.
Procedural Rules.

We address you in order to provide you with the information model that you must use to transmit data related to the requirement and integration of minimum capital, taking into account the provisions of Communications "A" 2136 and complementary, and "A" 2461 (Codified text of the rules on the requirement of minimum capital for the coverage of market risks).

We clarify that the first information to be entered with this format will correspond to the month of September, within the deadlines provided in Chapter C.- Monthly Accounting Information Regime - of Circular CONAU -1 (entities not subject to the information regime on consolidated bases will observe the deadlines indicated for the presentation of the Balance Sheet).

All data transmitted will correspond to the month under report.

Additional information on the requirement of minimum capital for market risk must generally be presented with data corresponding to the last day of each month. However, at the discretion of the Superintendence of Financial and Currency Entities, this information may be requested for one or more specific days of the month under report.

It is clarified that, within the purchased and sold positions recorded in the aforementioned additional information, the national value multiplied by the delta of the options corresponding to each type of asset will be included, which will also be reported separately.

As for the gradual schedule made known through Communication "A" 2461, it should not be taken into account in the data reported, as it will be calculated by the Superintendence of Financial and Currency Entities.

Below are the changes introduced in the "Information on monthly averages of daily balances and Complementary" of the Accounting Rules for Financial Entities, effective from the month of September:

• Information on monthly averages of daily balances: codes 888001 to 889093.
• Complementary information: codes 889804 to 889830 and 889833.

Likewise, the submission of information - on paper - regarding the requirement and integration of consolidated minimum capital with significant subsidiaries and affiliates in the country and abroad, included in the Monthly Accounting Information Regime of the Accounting Rules for Financial Entities, is hereby cancelled.

In all cases where information must be presented in summarized form, the local financial entity must keep the evidentiary elements of its content, in order to satisfy any potential requests from the Superintendence of Financial and Currency Entities, in the format that will be communicated in due course.

Regarding the specific aspects concerning the medium through which the information will be sent, the provisions of Circular RUNOR that complements this one must be taken into account.

We salute you very attentively.
BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Ricardo O. Maero Miguel A. Ortiz
Manager of
Information Regime
Superintendent of Financial and Currency Entities

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Version 6a Date 03.10.96 Communication "A" 2474 CONAU 1 - 203 Page 1 of 1
C. MONTHLY ACCOUNTING INFORMATION REGIME

1. General Rules.
2. Balance Sheet.
3. Status of debtors.
4. Information on monthly averages of daily balances and complementary.
5. Credit information center.
   5.1. Total debtors.
   5.2. Main debtors of financial entities.
6. Composition of economic groups.
7. Financing to the Public Sector.
8. Consolidation status of local entities with significant subsidiaries and affiliates in the country and abroad.
9. Status of debtors consolidated with significant subsidiaries and affiliates in the country and abroad.
10. Requirement and integration of minimum capital
    10.1. Individual
    10.2. Consolidated
11. Operations with persons or companies linked to the financial entity, fragmentation of credit risk and credit grading.

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Version 10a Date 03.10.96 Communication "A" 2474 CONAU 1 - 203 Page 1 of 1

1. General Rules
   1.1. The deadlines for the submission of the information included in this regime are as follows:
   1.1.1. Balance Sheet, Status of debtors, and Information on monthly averages of daily balances and complementary (entities that do not consolidate and individual information of entities subject to the consolidation regime) and Requirement and integration of minimum capital of entities that do not consolidate.
   Entities Deadline
   With subsidiaries abroad 20
   Rest 16
   1.1.2. Information on Credit Information Center, Composition of economic groups, and Financing to the Public Sector. The deadline will operate on the 20th of each month for all financial entities.
   1.1.3. Accounting and Status of debtors statements of local entities consolidated with subsidiaries and affiliates in the country and abroad, and Requirement and integration of minimum capital of local entities and consolidated with significant subsidiaries and affiliates in the country and abroad.
   The deadline will operate on the 30th of each month for all financial entities.
   1.1.4. Operations with persons or companies linked to the financial entity, fragmentation of credit risk, and credit grading.
   The deadline will operate on the 16th of each month, except for financial entities that must consolidate their accounting statements, in which case it will extend to the 30th of each month. These deadlines correspond to the month following that to which the information refers.
   1.2. The information that is not transmitted on magnetic media must be signed by the General Manager (or whoever exercises equivalent functions) and the highest-ranking responsible person of the Accounting Area.
   1.3. This information regime is subject to the provisions of Chapter II of Circular RUNOR - 1.

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Version 10a Date 03.10.96 Communication "A" 2474 CONAU 1 - 203 Page 1 of 10 REQUIREMENT AND INTEGRATION OF MINIMUM CAPITAL PROCEDURAL RULES

1. Entities included:
   1.1. Not subject to the information regime on consolidated bases.
   1.2. Subject to the information regime on consolidated bases.
   1.2.1. Financial entity considered individually.
   1.2.2. Financial entities, subsidiaries, and significant affiliates in the country and abroad.
2. General Instructions
   2.1. The information will have monthly frequency and will be integrated with data referring to the month under analysis.
   2.2. Amounts will be recorded in thousands of pesos, without decimals. For the purpose of rounding magnitudes, values will be incremented by one unit when the first digit of the fractions is equal to or greater than 5, discarding these last if they are lower.
3. Particular Instructions for Integration
   3.1. Table II.1.
   3.1.1. The data referred to by the information on requirement according to Communication "A" 2136 and complementary will be calculated by dividing the sum of the daily balances of the items included, recorded at the close of each day, by the total number of days of the corresponding month. On non-working days, the balance of the immediate preceding working day will be repeated.
   3.1.2. The data referred to by codes 11000000 and 12000000 include immobilized assets incorporated into equity until 30.6.93 and from 1.7.93, respectively.

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Version 1a Date 03.10.96 Communication "A" 2474 CONAU 1 - 203 Page 2 of 10
3.1.3. Non-immobilized assets - code 13000000.
Capital, interest, premiums, and exchange rate differences, net of provisions and deductible accumulated amortizations, as applicable, will be disclosed, disaggregated according to the risk weighting established in the table of Annex I to Communication "A" 2136 and complementary, which are not reported in other codes.
3.1.4. Financing (f) - codes 14010000 to 15230000 -
This includes capital, interest, premiums, and exchange rate differences, net of provisions and deductible accumulated amortizations, as applicable, of loans, other credits by financial intermediaries, and other financing granted - including, if applicable, guarantees, sureties, and other contingent liabilities -, except for operations between financial entities, disaggregated according to the weighting and the risk indicator referred to in the tables contained in Annexes I and II of the aforementioned Communication, respectively. Financing granted abroad by subsidiaries and affiliates that must be consolidated will be converted to pesos according to the criterion established for consolidation statements and for the purpose of applying the risk indicators, they will be assigned the value 1.00 regardless of their rate.
3.1.5. Guarantees, sureties, and other contingent liabilities - code 16000000.
Those that do not correspond to be included in codes 14010000 to 15230000 will be reported.
3.2. Table II.2.
3.2.1. The integration of minimum capital according to Communication "A" 2136 will correspond to the balances of admitted items, recorded on the last day of the month under report.
3.2.2. Code 20100000.
The total amount of the components of Basic Equity will be declared (the positive result of the last closed exercise will be counted once the auditor's opinion is available). In the case of monthly consolidation (code 2), third-party participation (Communication "A" 2227, point 11.) will be included.

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Version 1a Date 03.10.96 Communication "A" 2474 CONAU 1 - 203 Page 2 of 10
3.2.3. Codes 20200000 to 20700000.
The concepts comprising "Complementary Net Equity" will be recorded in accordance with point 2. of Communication "A" 2136 and complementary.
3.2.4. Code 20800000.
Securities, certificates of time deposits, other credit titles, etc., that are not physically in the possession of the entity will be reported, in accordance with Communication "A" 2263, for the purpose of their inclusion among deductible concepts ("Cd") for the determination of computable equity responsibility.
3.2.5. Code 20900000.
The highest balance recorded during the month to which the determination of computable equity responsibility corresponds, of the holding of debt securities, contractually subordinated to other liabilities, issued by other financial entities, will be included, in accordance with Communication "A" 2264, for the purpose of their computation among deductible concepts ("Cd") for the determination of computable equity responsibility.
3.2.6. Code 21000000.
The highest balance recorded during the month to which the determination of computable equity responsibility corresponds, of correspondent accounts and other placements at sight in banks and other financial institutions abroad that are not subject to the supervision of the central bank or equivalent authority of the country of origin, that do not capture deposits from residents of the country in which they are located, and that are not adhered to deposit guarantee or insurance systems, when such regimes exist; provided that these entities do not have an "investment grade" rating granted by at least one rating agency recognized by this Institution, in accordance with Communication "A" 2287, for the purpose of their inclusion among deductible concepts ("Cd") for the determination of computable equity responsibility.

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Version 1a Date 03.10.96 Communication "A" 2474 CONAU 1 - 203 Page 3 of 10
3.2.7. Code 21100000
The highest balance recorded during the month to which the determination of computable equity responsibility corresponds, of securities issued by governments of foreign countries, whose rating is lower than that assigned to national public securities of the Argentine Republic and that do not have markets where they trade habitually by relevant values; in accordance with Communication "A" 2287, for the purpose of their inclusion among deductible concepts ("Cd") for the determination of computable equity responsibility.
3.2.8. Code 21200000.
Accounts not declared in other codes, components of the concept "Cd", according to point 3.2., Chapter VI of Circular LISOL - 1, will be reported.
3.2.9. Code 21300000.
The total positive difference between the lower value of national public securities held in investment accounts and the lower value of relevant liabilities will be recorded, in accordance with Communication "A" 2266 (concept "Vd".
3.2.10. Code 21400000.
The positive difference resulting from comparing the book value of holdings of national securities accounted for in investment accounts - additional margin - with the quotation value, in accordance with Communication "A" 2321 (concept "Vc"), will be recorded.
3.3. Table II.3.
3.3.1. The requirement according to market risk will be determined with the values recorded on each of the days of the month to which the information corresponds.
3.3.2. Code 301000/xx.
The total risk value of the bond portfolio resulting from formula (7) of section 1.a.ii.e. of the Annex to Communication "A" 2461 will be recorded.
3.3.3. Code 302000/xx.
The total risk value of the stock portfolio resulting from formula (14) of section 1.b.ii.d. of the aforementioned Annex will be reported.

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Version 1a Date 03.10.96 Communication "A" 2474 CONAU 1 - 203 Page 5 of 10
3.3.4. Code 303000/xx.
The total risk value of the foreign bond portfolio obtained based on formula (15) of section 2.a.ii. of the aforementioned Annex will be included.
3.3.5. Code 304000/xx.
The total risk value of the foreign stock portfolio arising from formula (16) of section 2.b.ii. of the aforementioned Annex will be declared.
3.3.6. Code 305000/xx
The total risk value of foreign currency positions, resulting from formula (23) of section 3.ii.d. of the aforementioned Annex, will be reported.
3.4. Table II.4
3.4.1. The integration according to market risk will be determined with the amounts recorded on each of the days of the month to which the information corresponds.
3.4.2. Codes 401000/xx to 406000/xx
The daily change in value that occurs in the portfolio of national, foreign, and derivative assets included in the VARp requirement calculations as a result of changes in their market prices, from the last quotation recorded at the close of the immediate previous month, will be detailed. The variation in the value of assets acquired during the month will be calculated from their incorporation. In the case of asset sales, the positive or negative difference between the sale price and the last valuation will be considered.
3.5. Additional Information
3.5.1. The data to be recorded will refer to balances on the last day of each month and/or to the date requested by the Superintendence of Financial and Currency Entities.
3.5.2. For each group of assets, the risk value of purchased and sold positions will be reported. In the case of national and foreign bonds, these positions will be grouped according to the indicated zone according to their average life.

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Version 1a Date 03.10.96 Communication "A" 2474 CONAU 1 - 203 Page 6 of 10
3.5.3. The purchased and sold positions of each group of assets will include the national value multiplied by the delta of the options corresponding to those assets, data which will also be detailed separately.
4. Entities must keep detailed data constituting the basis for the calculation of the information included in this regime, in order to satisfy any potential requests from the Superintendence of Financial and Currency Entities.

Annex to Communication "A" 2474 Page: 7 of 10
MINIMUM CAPITAL
INFORMATION MODEL
CONSOLIDATION
Code Cases
0 Entity that does not consolidate
1 Entity that consolidates (financial entity only) 2 Monthly Consolidated (financial entity with subsidiaries abroad and significant affiliates)
II. CONCEPTS
II.1. Requirement according to Communication "A" 2136 and complementary Code Concept 11000000 Immobilized assets (Ais) 12000000 Immobilized assets (Aif) Weighting Factor 0% 10% 20% 30% 50% 75% 80% 100% 13000000 Non-immobilized assets (Ani) Financing (f) in pesos 14010000 Risk Indicator 0.80 14020000 " " " 1.00 14030000 " " " 1.20 14040000 " " " 1.40 14050000 1.60 14060000 1.80 14070000 2.00 14080000 2.20 14090000 2.40 14090000 2.60 14100000 2.80 14110000 3.00 14120000 3.20 14130000 3.40 14140000 3.50 14150000 3.80 14160000 4.00 14170000 4.30 14180000 4.60 14190000 4.80 14200000 5.70 14210000 5.70 14220000 5.50 14230000 6.00 Financing (f) in foreign currency 15010000 Risk Indicator 0.80 15020000 " " " 1.00 15030000 " " " 1.20 15040000 " " " 1.40 15050000 1.60 15060000 1.80 15070000 2.00 15080000 2.20 15090000 2.40 15100000 2.60 15110000 2.80 15120000 3.00 15130000 3.20 15140000 3.40 15150000 3.60 15160000 3.80 15170000 4.00 15180000 4.50 15190000 4.60 15200000 4.90 15210000 5.20 15220000 5.50 15230000 6.00 16000000 Guarantees, sureties, and other contingent liabilities

Annex to Communication "A" 2474 Page: 8 of 10
II.2. Integration according to Communication "A" 2136 and complementary Code Concept 20100000 Basic Net Equity 20200000 Minimum provisions required on normal portfolio. 20300000 100% of the results of the last quarterly balance sheet, corresponding to the last closed exercise without auditor's opinion 20400000 100% of the results of the current exercise, recorded at the close of the last quarterly balance sheet with auditor's report. 20500000 50% of positive results and all losses recorded in each month since the last quarterly or annual balance sheet with auditor's report or opinion. 20600000 100% of unrecorded losses. 20700000 Obligations for debt securities of the entity, contractually subordinated to other liabilities. 20800000 Securities, certificates of time deposits, other credit titles, etc., according to Communication "A" 2263 (concept "Cd"). 20900000 Holding of debt securities, contractually subordinated to other liabilities, issued by other financial entities, according to Communication "A" 2264 (concept "Cd").
21000000. Correspondent accounts and other placements at sight, according to Communication "A" 2287 (concept "Cd").
21100000 Securities issued by governments of foreign countries, according to Communication "A" 2287 (concept "Cd").
21200000 Other deductible accounts "Cd".
21300000 Positive difference between the value of securities and liabilities (concept "Vd").
21400000 Positive difference between the book value of holdings of national public securities in investment accounts - additional margin - and the quotation value (concept "Vc")

Annex to Communication "A" 2474 Page: 9 of 10
II.3. Requirement according to Communication "A" 2461 Code Concept 301000/xx Risk value national assets portfolio - bonds - (VaR AN-B) 302000/xx Risk value national assets portfolio - stocks - (VaR AN-A) 303000/xx Risk value foreign assets portfolio - bonds - (VaR AE-B) 304000/xx Risk value foreign assets portfolio - stocks - (VaR AE-A) 305000/xx Risk value foreign currency positions (VaR ME) II.4. Requirement according to Communication "A" 2461 Code Concept 401000/xx Daily variation in prices of national assets - bonds - (+) or (-) 402000/xx Daily variation in prices of national assets - stocks - (+) or (-) 403000/xx Daily variation in prices of foreign assets - bonds - (+) or (-) 404000/xx Daily variation in prices of foreign assets - stocks - (+) or (-) 405000/xx Daily variation in prices of foreign currency (+) or (-) 406000/xx Daily variation in prices of options on the assets reported in codes 401000/xx to 405000/xx (+) or (-) xx = days first to last of the month under report

Annex to Communication "A" 2474 Page 10 of 10
Additional Information

MARKET RISK REQUIREMENT (Com."A" 2461")

Code	Concept
501000/yy	Value at risk portfolio of national assets - bonds - zone 1 - purchased positions 502000/yy
Additional Value at risk of options on foreign assets - equities - (VaRo) + 537000/yy	Value at risk of foreign currency - purchased positions 538000/yy

YY = day of the month to which the information corresponds