Circular LISOL 1-686: Minimum Capital of Financial Entities. Exposure to Governments and Central Banks. Risk Weights. Regulatory Clarification

COMMUNICATION "A" 6024 26/07/2016
TO FINANCIAL ENTITIES:
Ref.: Circular
LISOL 1 - 686
Minimum Capital of Financial Entities. Exposure to Governments and Central Banks. Risk Weights. Regulatory Clarification. ______ We address you to clarify that, regarding the risk weight to be applied to exposures to the non-financial public sector for financing granted to social security beneficiaries or public employees (point 4.2.3.), the installments of all financing granted to the client by the entity that have been disbursed and have a periodic amortization system must be counted, regardless of the type of line. Likewise, we send you the sheets that, in replacement of those previously provided, should be incorporated into the referenced norms. Finally, it is recalled that on the website of this Institution www.bcra.gob.ar, by accessing "Legal and Normative Framework - Ordered Texts - Normative Orders", the modifications made with texts highlighted in special characters (strikethrough and bold) will be found. We greet you attentively. CENTRAL BANK OF THE ARGENTINE REPUBLIC Mirta M. Noguera Darío C. Stefanelli Manager of Regulatory Applications Principal Manager of Issuance and Regulatory Applications

ANNEX

Concept Risk Weight

• in % -
  4.1. Availability.
  4.1.1. Cash in vault, in transit (when the financial entity assumes responsibility and risk of transport) and in ATMs. 0
  4.1.2. Current and special accounts at the Central Bank of the Argentine Republic and payment orders under the BCRA. 0
  4.1.3. Minted gold or "good delivery" bars, provided in the latter case with the seal of any of the refining, smelting, assaying, former assaying and former smelting firms included in the list published by the BCRA. 0
  4.1.4. Cash items that are in the process of being collected (checks and drafts for collection), cash in cash-in-transit companies and cash in custody at financial entities. 20
  4.2. Exposure to governments and central banks.
  4.2.1. To the BCRA in pesos, when its source of funds is in that currency. 0
  4.2.2. To the National Government and to provincial and municipal governments and of the Autonomous City of Buenos Aires in pesos, when its source of funds is in that currency. 0
  4.2.3. To the non-financial public sector for financing granted to social security beneficiaries or public employees -in both cases with deduction code-, provided that such operations are denominated in pesos, the source of funds is in that currency and the installments of all financing of the entity that have a periodic amortization system do not exceed, at the time of the agreements, thirty percent (30%) of the borrower's income and that of the cohabiting family group. 0
  4.2.4. To the non-financial public sector and to the BCRA. Others.

Rating
AAA to
AAA+ to
BBB+ to
BBB+ to
BB+ to
B
Below
B
Unrated
Risk Weight
0 % 20 % 50 % 100 % 150 % 100 %

MINIMUM CAPITAL OF FINANCIAL ENTITIES
B.C.R.A.
Section 4. Table of risk weights.
Version: 9th COMMUNICATION "A" 6024
Validity:
27/07/2016

MINIMUM CAPITAL OF FINANCIAL ENTITIES
ORDERED TEXT SOURCE NORM
Section
Point Paragraph Com.
Cap./
Annex
Point Paragraph
OBSERVATIONS
3.9.2. "A" 5369 I According to Com. "A" 5580 and 5821.
1st and 2nd "A" 5369 I
3rd "A" 5369 I According to Com. "A" 5580, 5671, 5740 and 5821. 3.9.3. 4th to 6th "A" 5821 2.
3.9.4. "A" 5369 I
3.9.5. "A" 5369 I According to Com. "A" 5580.
3.10. "A" 5821 2.
3.10.1. "A" 5821 2.
3.10.2. "A" 5821 2.
3.10.3. "A" 5821 2.
3.
3.10.4. "A" 5821 2.
4.1. "A" 5369 I
4.1.1. "A" 5369 I
4.1.2. "A" 5369 I
4.1.3. "A" 5369 I
4.1.4. "A" 5369 I
4.2. "A" 5369 I
4.2.1. "A" 5369 I According to Com. "A" 5580.
4.2.2. "A" 5369 I According to Com. "A" 5580 and 5831.
4.2.3. "A" 5369 I According to Com. "A" 6024.
4.2.4. "A" 5369 I According to Com. "A" 6004.
4.2.5. "A" 5369 I According to Com. "A" 6004.
4.2.6. "A" 6004 4.
4.2.7. "A" 5369 I According to Com. "A" 6004.
4.2.8. "A" 5369 I
4.3. "A" 5369 I
4.3.1. "A" 5369 I According to Com. "A" 5831.
4.3.2. "A" 5369 I
4.4. "A" 5369 I
4.4.1. "A" 5369 I
4.4.2. "A" 5369 I According to Com. "A" 6004 and 6006.
4.5. "A" 5369 I According to Com. "A" 6004.
4.6. "A" 5369 I According to Com. "A" 5580. Includes interpretative clarification.
4.7. "A" 5369 I
4.7.1. "A" 5369 I According to Com. "A" 5580. Includes interpretative clarification.
4.7.2. "A" 5369 I
4.8. "A" 5369 I
4.9. "A" 5369 I According to Com. "A" 6004.
4.9.1. "A" 5369 I
4.9.2. "A" 5369 I
4.10. "A" 5369 I
4.10.1. "A" 5369 I
4.
4.10.2. "A" 5369 I