1993-07-08 | A 2118Added · Updated
Financial entities must maintain minimum capital equal to the higher of two calculated amounts by month-end. Non-compliance exceeding 3% or four consecutive under-3% violations requires submitting a restructuring plan within 20 calendar days. During such non-compliance, deposit growth is capped at the previous month's average, and entities are excluded from direct Central Bank operations. A 24% nominal annual charge applies to integration deficiencies, and authorization is revoked if capital is not integrated within 60 days of granting.
BCRA published 10 documents in the last 30 days — get each new one by email the day it lands.
__________________________________________________________________ COMUNICACION " A " 2118 08/07/93 __________________________________________________________________ TO FINANCIAL ENTITIES:
Ref.: Circular
LISOL 1 - 69.
Minimum Capital of Financial Entities
We address you to inform you that this Institution has adopted the following resolution:
"1. Establish that, from July 1993 onwards, the minimum capital requirement that financial entities must have integrated by the last day of each month shall be equivalent to the highest value resulting from the comparison between the amounts derived from points 1.1. and 1.2. below:
1.1. Minimum capital based on risk:
Cer = k (a Ais + 0,125 Aif + R (Vrf + Vrani))
where
Cer : minimum capital required based on risk. k : factor linked to the rating assigned to the entity according to the evaluation carried out by the Superintendence of Financial and Exchange Entities, taking into account the following scale:
| Rating Assigned | Value of "k" |
|---|---|
| 1 | 0,970 |
| 2 | 1,000 |
| 3 | 1,030 |
| 4 | 1,070 |
| 5 | 1,125 |
To this effect, the last rating communicated to the entity shall be considered. Until such communication is made, the value of "k" shall be equal to 1.
a : Coefficient established by the Central Bank. For the period July/December 1993 it shall be equal to 0.30, decreasing to 0.25 for the period January/June 1994, to 0.20 for the period July/December 1994 and to 0.15% from January 1995.
Ais : Immobilized assets incorporated into equity as of 30.6.93.
Aif : Immobilized assets incorporated into equity from 1.7.93.
R : Coefficient established by the Central Bank. For the period July/December 1993 it shall be 0.085. This coefficient shall increase by one hundredth point semi-annually until reaching 0.115 from January 1995.
Vrf : Risk value of loans, other credits by financial intermediation and other financings, except for operations between financial entities, in pesos and foreign currency, regardless of their instrumentality, determined by the sum of the values obtained after applying the following expression:
p . Ir . f
where
p : Weighting factor according to the table contained in Annex I to this communication, as a decimal fraction.
Ir : Risk indicator established in the table of Annex II to this communication.
The highest risk indicator applicable to operations with the same client shall also be applied to guarantees, sureties and other contingent liabilities granted to them.
f : Loans, other credits by financial intermediation and other financings granted -including, where applicable, guarantees, sureties and other contingent liabilities- except for operations between financial entities.
Vrani: Risk value of non-immobilized assets, not included in "Vrf", determined by the sum of the values obtained after applying the weighting percentages to the concepts included, as indicated in the table contained in Annex I.
When the market value of the guarantees and counter-guarantees received does not cover the amount of the assistance granted, the coverage shortfall shall be weighted at 100% or, if lower, at the value applicable to the operation according to the table contained in Annex I, such as the loans included in point 3.6.
Financings that, originally, were weighted with values lower than 100%, shall be subject to that weighter from the moment the debtor is classified in the "Debtor Status Report" in a situation other than normal. To this effect, assets -whether immobilized or not- shall be computed based on the monthly averages of daily balances of the month prior to that corresponding to the determination of the requirement (capital, interest, premiums and exchange differences, as applicable, net of provisions for uncollectibility risk and devaluation and of the accumulated amortizations attributable to them).
1.2. The minimum capitals communicated through Communication "B" 4489, without prejudice to the observance of what is provided in points 1.3. and 4.2. of Chapter VI of Circular LISOL - 1.
For the purposes of that comparison, savings and loan societies for housing or other real estate shall observe the minimum capitals corresponding to financial companies.
For the same purposes, credit unions shall consider, from 31.7.93 and 31.12.93, the minimum capitals established for financial companies in accordance with Communications "B" 4336 and 4489, respectively. Savings and loan societies for housing or other real estate and credit unions that carry out operations in foreign currency shall consider, given what is provided in Communication "A" 1823, the requirements established for financial companies in the terms of section 1.2.
Ic = PNb + PNc - Cd - D
where
Ic : Computable Integration
PNb : Basic Net Equity
PNc : Complementary Net Equity, not exceeding 50% of PNb Cd : Deductible accounts in accordance with point 3.2. of Chapter VI of Circular LISOL - 1
D : 50% of the positive amount of the restatement of non-monetary assets -net of the amortizations attributable to them-, generated from the balances as of July 1993, to the extent that the assets are maintained in equity.
"Basic Net Equity" comprises the following items from the "Net Equity" chapter of the Minimum Chart of Accounts (Code 400000):
"Complementary Net Equity" comprises the following concepts:
3.1. Creation of new entities.
Revocation of the authorization to operate if the required minimum capital is not integrated within 60 days of its granting.
3.2. Entities in operation.
A regularization and/or restructuring plan shall be submitted, adjusted to the terms provided in article 34 of Law 21.526 (text according to Law 24.144), within a period of 20 calendar days following the close of the month in which any of these circumstances are registered:
Without prejudice to the foregoing, the Central Bank may appoint a supervisor with the powers established by Law.
Furthermore, the obligation to submit the aforementioned plan shall give rise to the following consequences:
3.2.1. At all times and from the first day of the month following the month of the non-compliance that determines said obligation, the amount of deposits and other obligations by financial intermediation -in national and foreign currency-, according to the concepts contained in point 1. of Chapter I of Circular LISOL - 1, shall not exceed the level that, as a monthly average of daily balances, it had reached during the month in which said non-compliance is verified.
3.2.2. Limitation on access to account advances and rediscounts for temporary illiquidity in accordance with the provisions of point 1.3.4. of Chapter IV of Circular REMON - 1 (text according to Communication "A" 126).
3.2.3. Exclusion from the list of entities authorized to participate in exchange and open market operations directly with the Central Bank in accordance with the provisions of Communication "A" 1979.
3.2.4. The impediments provided for in point 3.1. of Chapter V of Circular LISOL - 1 (text according to Communication "A" 414).
3.2.5. The non-compliances with the required minimum capital, measured by the integration deficiencies, and the excesses at the limit resulting from point 3.2.1. shall be subject to a charge equivalent to 24% nominal annual, with the other provisions provided for these situations in point 3.2. of Chapter V of Circular LISOL - 1 (text according to Communication "A" 2019) being applicable.
The lifting of the restrictions shall be subject to the resolution adopted regarding the plan presented.
Leave without effect, with effect from July 1993, point 8. of Chapter VI of Circular LISOL - 1 (text according to Communication "A" 1858) and points 1., 2. and 3. of the resolution disseminated through Communication "A" 1858 and its complements.
Substitute, with effect from July 1993, point 3.1. of Chapter VI of Circular LISOL-1, with the following:
"3.1. Determination. Computable Concepts
The computable patrimonial liability of financial entities, for the purposes of the regulatory norms of the prescriptions of article 30 of Law 21.526, is determined by deducting from the balance corresponding to the "Net Equity" chapter (Code 400000) of the Minimum Chart of Accounts, the amounts indicated in point 3.2.. The concept "Net Equity", according to the definition contained in the respective chapter of the Chart Manual, comprises the difference between the asset and the liability of the financial entity, which is why it includes the positive or negative effect of the results of the current fiscal year, as of the date of each report."
Establish that, for July 1993, entities may opt to determine the requirement and compliance of minimum capital integration taking into account the provisions disseminated by Communication "A" 1858 and its complements. Therefore, in the event that this option is exercised -which must be manifested by note addressed to Supervision of Financial Entities-, they shall observe the norms of this resolution from August 1993, calculating the requirement based on the monthly averages of the computable assets registered in July."
We salute you very respectfully.
BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Juan C. Isi Alfredo A. Besio
Submanager of Norms for Financial Entities Manager of Norms for Financial Entities
ANNEX I to
Com. "A" 2118
TABLE OF WEIGHTING OF THE RISK VALUES
OF NON-IMMOBILIZED ASSETS
| Concept | Weighting - in % - |
|---|---|
| 1. Liquidity | |
| 1.1. B.C.R.A - current common and special accounts and sight deposits in US dollars; B.N.A. - clearing houses in the interior; other accounts computable for the integration of minimum foreign currency cash; other special deposits at the Central Bank and payment orders at its charge | 0 |
| 1.2. gold and cash in vault (in pesos and/or other currencies) | 0 |
| 1.3. other current accounts, correspondent accounts and other sight accounts in banks in the country, and in banks abroad included in the highest quality investment categories ("investment grade") according to rating granted by an international risk rating agency (Moody's, Standard and Poors or equivalents) | 15 |
| 1.4. others | 100 |
| 2. Public securities | |
| 2.1. national, according to the weighted average maturity of each security | |
| 2.1.1. up to one year | 0 |
| 2.1.2. more than one year up to 5 years | 15 |
| 2.1.3. more than 5 years | 30 |
| 2.2. provincial and municipal | 50 |
| 2.3. issued by companies of the governments mentioned in sections 2.1 and 2.2. | 50 |
| 2.4. foreign | |
| 2.4.1. included in the highest quality investment categories ("investment grade") according to rating granted by an international risk rating agency (Moody's, Standard and Poors or equivalents) | 20 |
| 2.4.2. others | 100 |
| 3. Loans | |
| 3.1. with preferred guarantees | |
| 3.1.1. cash (pesos and US dollars) and gold | 0 |
| 3.1.2. sureties of fixed deposit certificates issued by the creditor entity itself | 0 |
| 3.1.3. guarantee of the National Government (only with respect to operations valid as of 30.6.93) | 0 |
| 3.1.4. automatic repayments of export letters corresponding to multilateral and bilateral reciprocal credit agreements for foreign trade | 0 |
| 3.1.5. national public securities, according to the weighted average maturity of each security | |
| 3.1.5.1. up to one year | 0 |
| 3.1.5.2. more than one year up to 5 years | 15 |
| 3.1.5.3. more than 5 years | 30 |
| 3.1.5.4. appraised for that purpose at their nominal value, when the maturity of the operation coincides with the final cancellation date of said values or is subsequent to it (only with respect to operations valid as of 30.6.93) | 0 |
| 3.1.6. first degree mortgage | |
| 3.1.6.1. on real estate for own housing that are subject to the encumbrance | 50 |
| 3.1.6.2. on other real estate | 75 |
| 3.1.7. fixed pledge with first degree registration or with displacement to the entity | |
| 3.1.7.1. on motor vehicles (for private or commercial use) | 50 |
| 3.1.7.2. on other goods | 75 |
| 3.1.8. warrant | 30 |
| 3.2. to the non-financial public sector | |
| 3.2.1. National Government (except companies) | 0 |
| 3.2.2. others | 50 |
| 3.3. to the financial sector | |
| 3.3.1. up to 30 days maturity | 15 |
| 3.3.2. more than 30 days maturity | 30 |
| 3.4. with guarantee of foreign banks included in the highest quality investment categories ("investment grade") according to rating granted by an international risk rating agency (Moody's, Standard and Poors or equivalents) | 30 |
| 3.5. documentary credits used, except deferred payment ones, whose shipping documentation has not yet been delivered to the client | 50 |
| 3.6. up to the equivalent of $ 10,000 per holder, considering the set of operations in the entity (only in pesos and US dollars) provided that a lower weighting value does not apply, as provided in the preceding points | 80 |
| 3.7. others | 100 |
| 4. Other credits by financial intermediation | |
| 4.1. with the Central Bank | 0 |
| 4.2. with preferred guarantees | |
| 4.2.1. cash (pesos and US dollars) and gold | 0 |
| 4.2.2. sureties of fixed deposit certificates issued by the creditor entity itself | 0 |
| 4.2.3. guarantee of the National Government (only with respect to operations valid as of 30.6.93) | 0 |
| 4.2.4. national public securities, according to the weighted average maturity of each security | |
| 4.2.4.1. up to one year | 0 |
| 4.2.4.2. more than one year up to 5 years | 15 |
| 4.2.4.3. more than 5 years | 30 |
| 4.2.4.4. appraised for that purpose at their nominal value, when the maturity of the operation coincides with the final cancellation date of said values or is subsequent to it (only with respect to operations valid as of 30.6.93) | 0 |
| 4.2.5. first degree mortgage | 75 |
| 4.2.6. fixed pledge with first degree registration or with displacement to the entity | 75 |
| 4.3. debentures purchased and other debt securities - own issuances - | 0 |
| 4.4. B.N.A. - overdrafts in clearing houses in the interior | 0 |
| 4.5. with the financial sector | |
| 4.5.1. up to 30 days maturity | 15 |
| 4.5.2. more than 30 days maturity | 30 |
| 4.6. with guarantee of foreign banks included in the highest quality investment categories ("investment grade") according to rating granted by an international risk rating agency (Moody's, Standard and Poors or equivalents) | 30 |
| 4.7. accrued financial lease rentals receivable | |
| 4.7.1. linked to goods included in points 5.1. and 5.2. | 50 |
| 4.7.2. linked to other goods | 75 |
| 4.8. forward purchases of national public securities and foreign currency, linked or not with reverse repos, and their corresponding premiums to accrue | |
| 4.8.1. with a coverage margin of 20% or more in the traded asset or in fixed deposit certificates in the intervening entity itself | 0 |
| 4.8.2. others | 20 |
| 4.9. debtors from forward sales of national public securities and foreign currency, linked or not with cash repos | |
| 4.9.1. with a coverage margin of 20% or more in the traded asset or in fixed deposit certificates in the intervening entity itself | 0 |
| 4.9.2. others | 20 |
| 4.10. spot purchases for settlement of national public securities and foreign currency, and their corresponding premiums to accrue | 20 |
| 4.11. debtors from spot sales for settlement of national public securities and foreign currency | 20 |
| 4.12. forward purchases of private securities and others, except national public, linked or not with reverse repos, and their corresponding premiums to accrue | 50 |
| 4.13. debtors from forward sales of private securities and others, except national public, linked or not with cash repos | 50 |
| 4.14. spot purchases for settlement of private securities and others, except national public, and their corresponding premiums to accrue | 20 |
| 4.15. debtors from spot sales for settlement of private securities and others, except national public | 20 |
| 4.16. other forward purchases, their corresponding premiums to accrue and debtors from other forward sales | 50 |
| 4.17. sureties and stock market repos | |
| 4.17.1. of national public securities | 20 |
| 4.17.2. of other securities | 50 |
| 4.18. others | 100 |
| 5. Goods in financial lease | |
| 5.1. real estate for tenant's housing | 50 |
| 5.2. motor vehicles (for private or commercial use) | 50 |
| 5.3. other goods | 75 |
| 6. Other non-immobilized assets, except those deducted to determine the integration of the required minimum capital | 100 |
| 7. Guarantees, sureties and other contingent liabilities (*) | |
| 7.1. deferred payment documentary credits whose shipping documentation has not yet been delivered to the client | 50 |
| 7.2. for compliance with contractual obligations and/or maintenance of offers | 50 |
| 7.3. others | 100 |
In the event that these operations have counter-guarantees, in place of the weighting values established in points 7.1., 7.2. and 7.3., those mentioned in point 4 shall be used when, according to the guarantee offered, they are lower than those. (*) These concepts (codes 711033, 715003 and 715033, insofar as they correspond to operations accounted for in accounts 721033, 725003 and 725033) shall be computed in accordance with what is established in the last paragraph of point 1.1. of the resolution.
ANNEX II to
Com. "A" 2118
TABLE OF RISK INDICATORS
| FOREIGN CURRENCY OPERATIONS | PESO OPERATIONS | RISK INDICATOR |
|---|---|---|
| Effective Annual Interest Rate % | Effective Annual Interest Rate % | |
| Up to 18 | Up to 24 | 1,00 |
| More than 18 to 21 | More than 24 to 27 | 1,20 |
| More than 21 to 24 | More than 27 to 30 | 1,40 |
| More than 24 to 27 | More than 30 to 33 | 1,60 |
| More than 27 to 30 | More than 33 to 36 | 1,80 |
| More than 30 to 33 | More than 36 to 39 | 2,00 |
| More than 33 to 36 | More than 39 to 42 | 2,20 |
| More than 36 to 39 | More than 42 to 45 | 2,40 |
| More than 39 to 42 | More than 45 to 48 | 2,60 |
| More than 42 to 45 | More than 48 to 51 | 2,80 |
| More than 45 to 48 | More than 51 to 54 | 3,00 |
| More than 48 to 51 | More than 54 to 57 | 3,20 |
| More than 51 to 54 | More than 57 to 60 | 3,40 |
| More than 54 to 57 | More than 60 to 63 | 3,60 |
| More than 57 to 60 | More than 63 to 66 | 3,80 |
| More than 60 to 63 | More than 66 to 69 | 4,00 |
| More than 63 to 66 | More than 69 to 72 | 4,30 |
| More than 66 to 69 | More than 72 to 75 | 4,60 |
| More than 69 to 72 | More than 75 to 78 | 4,90 |
| More than 72 to 75 | More than 78 to 81 | 5,20 |
| More than 75 to 78 | More than 81 to 84 | 5,50 |
| More than 78 | More than 84 | 6,00 |
Note from RegAlert. AI assistants can read this document in full, and search 70,000+ more, through the RegAlert MCP connector (https://mcp.regalert.today/mcp). Free with an account. How to connect ChatGPT, Claude or Cursor.
Source: Banco Central de la Republica Argentina — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
More like this from BCRA
BCRA published 10 documents in the last 30 days. We email you each new one the day it's published.