"2021 - YEAR OF TRIBUTE TO NOBEL PRIZE IN MEDICINE DR. CÉSAR MILSTEIN" COMMUNICATION "A" 7393 03/11/2021 TO FINANCIAL ENTITIES:
Ref.: Circular
LISOL 1-952,
OPRAC 1-1119:
Minimum capital of financial entities.
Large credit risk exposures. Liquidity coverage ratio. Net stable funding ratio. Consolidated supervision. Credit policy. Update. ___________________________________________________________________________ We address you to deliver the sheets that, in replacement of those previously provided, must be incorporated into the referenced regulations based on the provisions disseminated through Communication "A" 6723. It is noted that on this Institution's website www.bcra.gob.ar, by accessing "Financial System – LEGAL AND REGULATORY FRAMEWORK – Ordering and summaries – Ordered texts of general regulation", the modifications made with text highlighted in special characters (strikethrough and bold) can be found. We salute you attentively. CENTRAL BANK OF THE ARGENTINE REPUBLIC Enrique C. Martin Darío C. Stefanelli Manager of Emission of Regulations Principal Manager of Emission and Regulatory Applications

ANNEX

9.1. Individual basis.
Financial entities (including their subsidiaries in the country and abroad) shall observe the regulations regarding minimum capital on an individual basis.
9.2. Consolidated basis.
Without prejudice to compliance on an individual basis, controlling financial entities subject to consolidated supervision shall observe the regulations regarding minimum capital on a monthly consolidated basis and, additionally and independently, quarterly. For the purpose of compliance with regulations regarding minimum capital for market risk, for each level of sub-consolidation, sold and purchased positions in the same instrument (currency, stock, or bond) must be consolidated and reported in net terms, regardless of the branch or subsidiary in which they are registered. This implies consolidating the total positions of subsidiaries in which the entity does not have 100% ownership. Consequently, the "offsetting rules" for this risk shall be applied on a consolidated or sub-consolidated basis, as applicable. However, when there are obstacles to the rapid repatriation of benefits from a branch or subsidiary abroad or legal or administrative difficulties for the adequate management of risks on a consolidated basis, individual positions shall be incorporated into the calculation without netting them with other positions in the rest of the group. Likewise, financial entities that belong to Group A – in accordance with the regulations on "Authorities of financial entities" – whose controlling company is a "holding company" – (non-financial entity), must comply with the regulations regarding minimum capital on a consolidated – quarterly – basis that includes that holding company and all subsidiaries of that "holding company" or of the financial entity as provided in point 5.2.2. of the regulations on "Consolidated supervision". B.C.R.A. MINIMUM CAPITAL OF FINANCIAL ENTITIES
Section 9. Bases for observing the regulations.
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MINIMUM CAPITAL OF FINANCIAL ENTITIES
ORDERED TEXT SOURCE REGULATION OBSERVATIONS Section Point Paragraph Com. Cap./
Annex Point Paragraph
8.
8.4.1.4.
1st and last
"A" 2287 3.2. According to Com. "A" 4172 and 5671.
2nd "A" 2474 Procedural regulations on the requirement and integration of minimum capital (point 3.2.7.). Modified by Com. "A" 4172.
8.4.1.5. "A" 2264 1. According to Com. "A" 4172, 4576 (point
7.), 5369 (Annex I) and 5831.
8.4.1.6. "A" 414
LISOL-1
VI 3.2. According to Com. "A" 4172.
8.4.1.7. "A" 2730 According to Com. "A" 4172.
8.4.1.8. "A" 2545 According to Com. "A" 4172, 5369 (Annex I)
and 6327.
8.4.1.9. "A" 414
LISOL-1
VI 3.2. According to Com. "A" 4172.
8.4.1.10. "A" 2287 4. According to Com. "A" 4172.
"A" 2607 1.
8.4.1.11. "A" 2893 1. According to Com. "A" 4172.
8.4.1.12. "A" 3087 According to Com. "A" 4172, 5369 (Annex
I), 5700 and 6277.
8.4.1.13. "A" 4725 6.
8.4.1.14. "A" 5069 2.
8.4.1.15. "A" 5369 I According to Com. "A" 6433.
8.4.1.16. "A" 5369 I
8.4.1.17. "A" 414
LISOL-1
VI 3.2. According to Com. "A" 4172, 4539, 4665 and 5369 (Annex I).
"A" 1215 Specifications of financial entity participation items not deductible to determine computable equity. 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 unique 5.2.1. last According to Com. "A" 2649 and 4172.
9.2. "A" 2227 unique 5.1.1.,
5.1.7. and
5.2.2.
According to Com. "A" 2461, 2649, 4172,
5272, 5369 and 5867. last "A" 6723 1. According to Com. "A" 7393.
10.
10.1. "A" 6004 unique According to Com. "A" 6343.
10.2. "A" 6004 unique According to Com. "A" 6343.
10.3. "A" 6004 unique According to Com. "A" 6343.

6.1. Individual basis.
Financial entities (including their branches in the country and abroad) shall observe the regulations on "Large credit risk exposures" on an individual basis.
6.2. Consolidated basis.
Without prejudice to compliance on an individual basis, controlling financial entities subject to consolidated supervision shall observe the regulations on "Large credit risk exposures" on a monthly consolidated basis and, additionally and independently, quarterly. Compliance at the consolidated level implies that the controlling entity must consider all exposures with individual counterparties belonging to the same group of connected counterparties – in accordance with the definition provided in point 1.2.1.– and compare the aggregate amount of those exposures with the group's level one capital. Likewise, financial entities that belong to Group A – in accordance with the regulations on "Authorities of financial entities" – whose controlling company is a "holding company" – (non-financial entity), must comply with the regulations on "Large credit risk exposures" on a consolidated – quarterly – basis that includes that holding company and all subsidiaries of that "holding company" or of the financial entity as provided in point 5.2.2. of the regulations on "Consolidated supervision". B.C.R.A. LARGE CREDIT RISK EXPOSURES
Section 6. Bases for observing the regulations.
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"LARGE CREDIT RISK EXPOSURES"
ORDERED TEXT SOURCE REGULATION OBSERVATIONS Sec. Point Para. Com. Annex Cap. Sec. Point Para.
2.
2.5.2.2. "A" 2140 II 3.4. According to Com. "A" 5472,
5496, 5671, 5740, 6599 and 6978. Includes interpretative clarification.
2.5.3.1. "A" 2140 II 2.1. According to Com. "A" 5472 and
6599.
2.5.3.2. i) "A" 2140 II 2.2. 1st According to Com. "A" 5472 and
6599. ii), 1st "A" 2140 II 2.2. 1st According to Com. "A" 5472 and 6599. ii), 2nd "A" 2252 3. 1st
2.6. "A" 2140 I 5. According to Com. "A" 5472 and
6599.
2.6.1. "A" 2140 I 5. According to Com. "A" 5472 and
5671 and 6599.
2.6.2. "A" 3901 II 1.1. According to Com. "A" 6599.
2.7. "A" 5193 According to Com. "A" 5472.
2.8.1. "A" 6599 According to Com. "A" 6620.
2.8.2. "A" 6599
3.
3.1. "A" 6599 According to Com. "A" 6620.
3.2. "A" 6599
3.3. "A" 6599 According to Com. "A" 6639
(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 Com. "A" 5472.
5.2. "A" 49
OPRAC-1
I 4.4.2.
5.3.1. "A" 2573 1. According to Com. "A" 3051
(Annex, point 1.4.1.).
5.3.2. "A" 5472
6.
6.1. "A" 2649 1. According to Com. "A" 6599.
6.2. 1st "A" 2227 unique 5.1.2.,
5.1.3.,
5.2.1. and
5.2.2.
According to Com. "A" 2649
(point 1.) and 6599.
2nd "A" 6599 last "A" 6723 1. According to Com. "A" 7393.

8.2.2. Treatment of restrictions on liquidity transfer.
The liquidity surplus – with respect to the level corresponding to an LCR of 1 – shall only be counted in the consolidated LCR to the extent that there are no doubts about its availability. Restrictions on the transfer of liquidity in the countries where financial entities operate will affect the availability of liquidity, preventing the transfer of assets from the FALAC and the flow of cash within the economic group. These restrictions must be reflected in the consolidated LCR, as provided in point 2.1.7. Financial entities must have procedures to record, to the extent possible, all restrictions on liquidity transfer established by laws and applicable regulations, as well as to monitor said regulatory framework, and evaluate its impact on the liquidity of the economic group. Likewise, financial entities whose controlling company is a "holding company" – (non-financial entity), must comply with the regulations regarding the liquidity coverage ratio on a consolidated – quarterly – basis that includes that holding company and all subsidiaries of that "holding company" or of the financial entity as provided in point 5.2.2. of the regulations on "Consolidated supervision". B.C.R.A. LIQUIDITY COVERAGE RATIO
Section 8. Bases for observing.
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B.C.R.A. ORIGIN OF THE PROVISIONS CONTAINED IN THE REGULATIONS ON "LIQUIDITY COVERAGE RATIO" ORDERED TEXT SOURCE REGULATION OBSERVATIONS Section Point Paragraph Com. Cap./
Annex Point Paragraph
1.
1.1. "A" 5693 3. According to Com. "A" 6209, 6475 and
6633.
1.2. "A" 5693 unique 1.1.
1.3. "A" 5693 unique 1.2.
1.4. "A" 5693 unique 1.3.
1.5. "A" 5693 unique 1.4.
1.6. "A" 5693 unique 1.5.
1.7. "A" 5693 unique 1.6.
2.
1st and 2nd "A" 5693 unique 1st and 2nd
2.1. "A" 5693 unique 2.1.
2.2. "A" 5693 unique 2.2. According to Com. "A" 6241 and 6327.
3.
3.1. "A" 5693 unique 3.1.
3.2. "A" 5693 unique 3.2.
3.3. "A" 5693 unique 3.3.
4.
4.1. "A" 5693 unique 4.1.
4.1.1. "A" 5693 unique According to Com. "A" 6004.
4.2. "A" 5693 unique 4.2.
4.2.1. "A" 5693 unique 4.2. According to Com. "A" 6431 and 6586.
4.2.2. "A" 5693 unique 4.2.
4.2.3. "A" 5693 unique 4.2.
4.2.4. "A" 5693 unique According to Com. "A" 6004.
4.3. "A" 5693 unique 4.3.
4.4. "A" 5693 unique 4.5.
4.4.2.1. "A" 5693 unique 4.5. According to Com. "A" 6004.
4.4.5. "A" 5693 unique 4.5. According to Com. "A" 6004.
4.4.6.1. "A" 5693 unique 4.5. According to Com. "A" 6004.
4.4.6.2. "A" 5693 unique 4.5.
4.4.6.3. "A" 5693 unique 4.5. According to Com. "A" 6004.
5. 5.1. "A" 5693 unique 5.1.
5.2. "A" 5693 unique 5.2.
6.
6.1. "A" 5693 unique 6.1.
6.1.4.2. "A" 5693 unique 6.1. According to Com. "A" 6008.
6.1.4.11. "A" 5693 unique 6.1. According to Com. "A" 6004 and 6008.
6.2. "A" 5693 unique 6.2.
7. 7.1. "A" 5693 unique 7.1.
7.2. "A" 5693 unique 7.2.
8.
8.1. "A" 5693 unique 8.1.
8.2. "A" 5693 unique 8.2.
last "A" 6723 1. According to Com. "A" 7393.

6.1. Individual basis.
Financial entities (including their branches in the country) shall observe the regulations regarding the NSFR on an individual basis.
6.2. Consolidated basis.
Without prejudice to compliance on an individual basis, controlling financial entities subject to consolidated supervision shall observe these provisions on a consolidated basis. Financial entities must actively monitor and control liquidity risk exposures and funding needs of each of their branches and subsidiaries – including those located abroad – as well as the group to which they belong as a whole, paying special attention to legal, regulatory, and operational restrictions on liquidity transfer. Likewise, financial entities whose controlling company is a "holding company" – (non-financial entity), must comply with the regulations regarding the NSFR on a consolidated – quarterly – basis that includes that holding company and all subsidiaries of that "holding company" or of the financial entity as provided in point 5.2.2. of the regulations on "Consolidated supervision". B.C.R.A. NET STABLE FUNDING RATIO
Section 6. Bases for observing.
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B.C.R.A. ORIGIN OF THE PROVISIONS CONTAINED IN THE REGULATIONS ON "NET STABLE FUNDING RATIO" ORDERED TEXT SOURCE REGULATION OBSERVATIONS Section Point Paragraph Com. Cap. Point Paragraph 1.
1.1. "A" 6306 According to Com. "A" 6475 and 6633.
1.2. "A" 6306
1.3. "A" 6306 According to Com. "A" 6723.
1.4. "A" 6306
1.5. "A" 6306
2.
2.1. "A" 6306
2.2. "A" 6306
2.3. "A" 6306
2.3.1.3. "A" 6306 According to Com. "A" 6723.
2.3.3.1. "A" 6306 According to Com. "A" 6723.
2.3.3.2. "A" 6723
2.3.5.5. "A" 6723
3.
3.1. "A" 6306
3.2. "A" 6306
3.3. "A" 6306
3.4. "A" 6306
4. "A" 6306
5.
5.1. "A" 6306
5.1.6. "A" 6306 According to Com. "A" 6723.
5.1.7. "A" 6723
5.1.17. "A" 6723
5.2. "A" 6306
6.
6.1. "A" 6306
6.2. "A" 6306
last "A" 6723 1. According to Com. "A" 7393.

3.1. Monthly consolidation.
Financial entities must submit financial statements and other information monthly that reflect consolidated operations of:
3.1.1. Their headquarters or parent company and their subsidiaries in the country and abroad.
3.1.2. Their significant subsidiaries in the country and abroad.
3.2. Quarterly consolidation.
In addition to the monthly consolidated information, financial entities must submit quarterly and annual financial statements and other information that reflect consolidated operations of:
3.2.1. Their headquarters or parent company and their subsidiaries in the country and abroad.
3.2.2. Their subsidiaries in the country and abroad, and their holding company – (non-financial entity) – in the cases provided for in the last two paragraphs of point 5.2.2.
3.2.3. Entities or companies in the country and abroad in which more than 12.5% of the total votes are held or controlled, in cases where the Superintendent of Financial and Currency Entities determines so by resolution.
3.2.4. Entities or companies not subject to consolidated supervision but that the entity chooses to include, with prior authorization from the SEFyC.
3.3. Nature of consolidated financial statements.
Consolidated financial statements shall have the character of supplementary information.
In the cases of quarterly and annual closings, an external audit report regarding their reasonableness, taking into account the consolidation guidelines defined in these regulations, will be required. B.C.R.A. CONSOLIDATED SUPERVISION
Section 3. Information.
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5.2.1.8. Ratio for immobilized assets and other concepts.
5.2.1.9. Liquidity coverage ratio – when dealing with financial entities included in those regulations – according to the scope established in point 8.2.
of the regulations on "Liquidity coverage ratio".
5.2.2. Quarterly consolidated basis.
Without prejudice to compliance on an individual basis, and additionally and independently of compliance on a monthly consolidated basis, controlling financial entities subject to consolidated supervision shall observe on a quarterly consolidated basis the following regulations:
5.2.2.1. Minimum capital.
5.2.2.2. Classification of debtors and minimum provisions for uncollectible risk.
5.2.2.3. Financing to the non-financial public sector.
5.2.2.4. Maximum limit for holding shares in companies that do not provide services complementary to the financial activity.
5.2.2.5. Ratio for immobilized assets and other concepts.
5.2.2.6. Net stable funding ratio – when dealing with financial entities included – according to what is established in point 6.2. of the regulations on "Net stable funding ratio".
5.2.2.7. Large credit risk exposures.
Financial entities that belong to Group A – in accordance with the regulations on "Authorities of financial entities" – whose controlling company is a "holding company" – (non-financial entity) – shall observe the regulations referred to in points 5.2.1.9., 5.2.2.1., 5.2.2.6. and 5.2.2.7. on a consolidated basis that includes that holding company and all subsidiaries of that "holding company" or of the financial entity, excluding insurance companies and any other subsidiary of the group as long as it does not perform activities of a financial nature. For these purposes, financial activity includes activities that can be carried out by financial entities, those provided for in point 2.2. of the regulations on "Complementary services to financial activity and permitted activities", as well as others that the SEFyC considers to be auxiliary to the activity of financial entities, excluding insurance companies.
5.2.3. Compliance with regulations on "Anti-money laundering, counter-terrorist financing and other illicit activities" according to the regulations issued by the UIF.
B.C.R.A. CONSOLIDATED SUPERVISION
Section 5. Compliance with regulations.
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5.2.4. Foreign branches of financial entities and their significant subsidiaries,
according to what is provided in point 2.1.2. of these regulations, shall observe the regulations on "Correspondent accounts".
5.3. Applicable criteria.
For the purposes indicated above, the following shall be taken into account:
5.3.1. Monthly consolidation.
The data of the local financial entity, including its branches in the country and abroad, and its significant subsidiaries, shall be taken. The maximum limits provided for in the regulations on "Financing to the non-financial public sector" and "Large credit risk exposures" must be observed at all times on a consolidated basis, i.e., considering the operations included from the respective clients in the entities and companies subject to monthly consolidation. The determination of computable equity shall be made by applying the regulations established in the matter, both regarding the requirement and the integration, on a consolidated basis.
5.3.2. Quarterly consolidation.
The data of the local financial entity, including its branches in the country and abroad, and all its subsidiaries included in the obligation to consolidate quarterly, shall be taken. The maximum limits provided for in the regulations on "Financing to the non-financial public sector" and "Large credit risk exposures" must be observed at all times on a consolidated basis, i.e., considering the operations included from the respective clients in the entities and companies subject to quarterly consolidation. The determination of computable equity shall be made considering, both for the requirement and for the integration, the balances at the end of the quarter, and applying the regulations established in the matter in other aspects. Such equity shall be the basis for comparison during the following quarter to determine compliance with the regulations to be observed on a quarterly consolidated basis.
5.4. Other aspects.
5.4.1. Restrictions regarding common investment funds.
Limitations on holding shares in common investment funds and transactions that provide liquidity to such funds must be observed on individual and consolidated bases. B.C.R.A. CONSOLIDATED SUPERVISION
Section 5. Compliance with regulations.
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5.5. Responsibilities.
It shall be the obligation of the local financial entity to ensure full compliance on a consolidated basis of the regulations subject to such compliance. When this requirement is not observed, the entity shall be subject to the charges and other provisions that, for cases of non-compliance, each of the regulations provide. Additionally, the Superintendent of Financial and Currency Entities may:
5.5.1. Order that the treatment established for related persons be applied to the financial entity or entities subject to consolidation.
5.5.2. Revoke the authorization previously granted to acquire the shareholding in the subsidiary.
B.C.R.A. CONSOLIDATED SUPERVISION
Section 5. Compliance with regulations.
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B.C.R.A. ORIGIN OF THE PROVISIONS CONTAINED IN THE REGULATIONS ON "CONSOLIDATED SUPERVISION" ORDERED TEXT SOURCE REGULATION OBSERVATIONS Section Point Paragraph Com. Annex Point Paragraph 1.
1.1. "A" 2227 1. 1st According to Com. "A" 6327.
1.2. "A" 2227 1. last
1.3.
1st and 2nd "A" 2227 5.
3rd and last
"A" 2227 6.
2.
2.1. "A" 2227 unique 1. According to Com. "A" 2649, 2988 and
6327.
2.2. "A" 2227 unique 1.
2.3. "A" 2619 1st and last
According to Com. "A" 2988, 5700 and
6304.
2.4. "A" 2227 unique 3.
3.
3.1. "A" 2227 unique 2.2. According to Com. "A" 6327.
3.2. "A" 2227 unique 2.3. According to Com. "A" 2988, 6327,
6723 and 7393.
3.3. "A" 2227 unique 2.4. According to Com. "A" 6327.
3.4. "A" 2227 10. 1st According to Com. "A" 5115 and 6327.
"A" 2732 2nd and 4th
4.
4.1. "A" 2227 unique 4.1.
4.2. "A" 2227 unique 4.2. According to Com. "A" 6327.
4.3.
1st "A" 2227 unique 4.3. 1st
2nd "A" 2227 11. last "A" 2227 unique 4.3. last
4.4. "A" 2227 unique 4.4. According to Com. "A" 6327.
4.5. "A" 2227 unique 5.4. According to Com. "A" 6327.
5.
5.1. "A" 2227 unique 5.2.1. last According to Com. "A" 2649, 3274,
3558, 5693 and 6306.
5.2. "A" 2227 unique 5.1. and
5.2.1. last
According to Com. "A" 2649.
5.2.1.1. "A" 2227 unique 5.1.1. and
5.1.7.
According to Com. "A" 2649.
5.2.1.2. "A" 2227 unique 5.1.5. According to Com. "A" 2649.
5.2.1.3. "A" 2227 unique 5.1.2. and
5.1.3.
According to Com. "A" 2649 and 6639.
5.2.1.4.i) 1st "A" 2227 unique 5.1.4. According to Com. "A" 2649 and 3558.
2nd "A" 2227 13.
5.2.1.4.ii) "B" 5902 5. According to Com. "A" 2649, 6023 and 6505.
5.2.1.5. "A" 6639
5.2.1.6. "B" 5902 5. According to Com. "A" 2649.

CONSOLIDATED SUPERVISION
ORDERED TEXT SOURCE REGULATION OBSERVATIONS Section Point Paragraph Com. Annex Point Paragraph 5.
5.2.1.7. "A" 4891 8. According to Com. "A" 5557.
5.2.1.8. "A" 2227 unique 5.1.8. According to Com. "A" 2736.
5.2.1.9. "A" 5693 According to Com. "A" 5724 (interpretative clarification).
5.2.2. "A" 2227 unique 5.1. According to Com. "A" 2649, 2461,
2736, 2839, 5180, 5272, 5369,
6306, 6327, 6639, 6723, 7393 and
"B" 5902.
5.2.3. "A" 4835 4. According to Com. "A" 5223, 6639 and
6709.
5.2.4. "A" 5093
5.3.1. "A" 2227 unique 5.2.1. According to Com. "A" 2649, 5520 and
6639.
5.3.2. "A" 2227 unique 5.2.2. According to Com. "A" 5520 and 6639.
5.4.1. "B" 6566 1.
5.5. "A" 2227 unique 5.3. According to Com. "A" 2649.

INDEX

Section 1. General Credit Policy.
1.1. General Criteria.
1.2. Included Financings.
1.3. Credit Management.
1.4. Foreign Currency Financings.
1.5. Prohibitions.
1.6. Treatment of Certain Financings.

Section 2. Application of Foreign Currency Deposit Lending Capacity.
2.1. Destinations.
2.2. Conditions.
2.3. Imputation of Incorporated Financings.
2.4. Financings to debtors classified as "unrecoverable" that are not registered in the assets.
2.5. Lending Capacity.
2.6. Application Defects.

Section 3. Application of Liquid Own Resources.
3.1. Liquid Own Resources.
3.2. Application.

Section 4. Financing to the Non-Financial Public Sector of the Country.
4.1. Applicable Norms.

Section 5. Financing to Residents Abroad.
5.1. General Criteria.
5.2. Placements in Banks Abroad.
5.3. Holding of Securities Abroad.
5.4. Guarantees for Credit Lines and Derivative Products Abroad.
5.5. Guarantees to Residents Abroad.

Section 6. Loans of Acquisition Value Units and Housing Units.
6.1. Loans of Acquisition Value Units adjustable by "CER" - Law 25.827 ("UVA").
6.2. Loans of Housing Units adjustable by the "ICC" - Law 27.271 ("UVI").
6.3. Publication of Acquisition Value Units and Housing Units.
6.4. Special Treatment for "UVA" Assistances.

B.C.R.A. CONSOLIDATED TEXT OF THE NORMS ON "CREDIT POLICY" Version: 19th COMMUNICATION "A" 7393 Effective: 04/11/2021 Page 1

1.1. General Criteria.

Credit assistance granted by financial entities must be oriented towards financing investment, production, marketing, and consumption of goods and services required by both domestic demand and the country's exports, or direct investments abroad made by resident companies.

1.2. Included Financings.

The totality of financings that are registered, regardless of the modalities used, whether granted directly, instrumented in the form of financial leasing ("leasing"), negotiable obligations, or incorporated by purchase or assignment, including those comprising asset portfolios for which debt titles or participations are held (financial trusts, common investment funds, etc.), must be adequate to the criteria applicable in matters of credit policy. This applies regardless of the sources of funds to which they are susceptible to being imputed, without prejudice to the observance of special norms to which they are subject for their application.

1.3. Credit Management.

Financial entities may freely define the conditions and instrumentations of their credit operations, in compliance with the norms on "Credit Management" and "Interest Rates in Credit Operations".

1.4. Foreign Currency Financings.

When financial entities apply resources in foreign currency obtained from their liabilities for financial intermediation – excluding deposits, inter-financial loans referred to in point 2.1.10., and commercial credit lines from abroad – in the granting of financings in that currency, they must do so only for the destinations and under the conditions provided for in points 2.1. to 2.4. The same limitation will apply when the aforementioned liabilities and assets are denominated in pesos adjustable by the evolution of the value of the foreign currency. The calculation of assets and liabilities covered will be based on the monthly average of daily balances (capitals and interests) recorded in each calendar month. Financings will be considered net of provisions for uncollectibility risks and devaluation attributable to them and, where applicable, of the "difference by portfolio acquisition".

1.5. Prohibitions.

1.5.1. Loss Absorption Capacity Instruments (TLAC).

Financial entities may not register holdings of TLAC instruments, issued in accordance with the norms of the Basel Committee on Banking Supervision by branches or subsidiaries in the country of banks classified as systemically important (G-SIB) – or their branches or subsidiaries in the country or abroad – other than those computable as computable equity liability – in accordance with what is established in Section 8. of the norms on "Minimum Capital Requirements for Financial Entities" – regardless of the sources of funds to which they are susceptible to being imputed.

1.5.2. Financings to "Holding Company".

From June 28, 2019, financial entities that belong to Group A, according to the classification provided in point 4.1. of the norms on "Authorities of Financial Entities", may not grant – directly or indirectly – any type of financial assistance to their controlling entity when it is a "holding company" and not a financial entity, considering for this purpose what is established in point 1.2.

1.6. Treatment of Certain Financings.

From May 18, 2020, financial entities may not grant the financings provided for in points 1.5.5. and 1.5.7. of the norms on "Minimum Cash" to persons – natural or legal – with agricultural activity that maintain a stock of their wheat and/or soy production with a value greater than 5% of their annual harvest capacity.

B.C.R.A. CREDIT POLICY
Section 1. General Credit Policy.
Version: 10th COMMUNICATION "A" 7393 Effective: 04/11/2021 Page 1

B.C.R.A. CREDIT POLICY
Section 1. General Credit Policy.
Version: 3rd COMMUNICATION "A" 7393 Effective: 04/11/2021 Page 2

9.1. Individual Basis.

Financial entities (comprehending exclusively their houses in the country) will observe the norms on "Credit Policy" individually. These provisions will also apply in branches abroad, to the extent that they operate with resources coming from the houses in the country of the entity, additional to the assigned capital.

9.2. Consolidated Basis.

Without prejudice to compliance individually, controlling financial entities subject to consolidated supervision will observe the norms in matters of "Credit Policy" on a monthly consolidated basis and, additionally and independently, quarterly (excluding their subsidiaries abroad). Subsidiaries abroad will be included, to the extent that they operate with resources coming from the houses in the country of the entity, additional to the capital participation. The prohibition on holding TLAC instruments provided for in point 1.5.1. will operate on branches and subsidiaries abroad regardless of the resources used for their funding.

B.C.R.A. CREDIT POLICY
Section 9. Bases of Observance.
Version: 8th COMMUNICATION "A" 7393 Effective: 04/11/2021 Page 1

B.C.R.A. ORIGIN OF THE PROVISIONS CONTAINED IN THE NORMS ON "CREDIT POLICY"

CONSOLIDATED TEXT	ORIGIN OF THE NORM	OBSERVATIONS
Sec.	Point	Para.	Comm.	Annex	Chap.	Sec.	Point	Para.
1.
1.1.	"A" 49		OPRAC-1	I	1.1.	According to Comm. "A" 6031.
1.2.	"A" 4311					According to Comm. "A" 2736 (points 6. and 7.5.), 4851, 5067 and "C" 50798.
1.3.	"A" 49		OPRAC-1	I	1.2.
1.4.	"A" 5909	único				According to Comm. "A" 5916 and 6231.
1.5.1.	"A" 6662					According to Comm. "A" 7393.
1.5.2.	"A" 6723	2.				According to Comm. "A" 7393.
1.6.	"A" 7018	4.
2.
2.1.	"A" 3528	1.				According to Comm. "A" 4147, Annex.
2.1.1.	1° "A" 3528	1.1.				According to Comm. "A" 4015, 4311, 4423, 4851, 5908, 6363 and 6428 –includes interpretative clarification–.
2.1.2.	"A" 5908					According to Comm. "A" 6428, includes interpretative clarification.
2.1.3.	"A" 4015	1.2.				Includes interpretative clarification. According to Comm. "A" 4851 and 5908.
2.1.4.	"A" 4015	1.3.				According to Comm. "A" 5908 and 6105.
2.1.5.	"A" 6105	2.
2.1.6.	"A" 4423					According to Comm. "A" 5908.
2.1.7.	"A" 4453					According to Comm. "A" 4577 and 5908.
2.1.8.	"A" 4011	1.4. 1°				According to Comm. "A" 4015, 4311, 4851, 5908, 6031 and 6305.
2.1.9.	"A" 4015	1.4. último				According to Comm. "A" 4311, 4851 and 5908.
2.1.10.	"A" 3528	1.2.				According to Comm. "A" 4140 and 4311.
2.1.11.	"A" 5534	2.				According to Comm. "A" 5859.
2.1.12.	"A" 6031	2.
2.1.13.	"A" 6031	2.
2.1.14.	"A" 6105	2.				According to Comm. "A" 6526.
2.1.15.	"A" 6162	1.
2.1.16.	"A" 6231	1.
2.1.17.	"A" 6245	1.				According to Comm. "A" 6328.
2.1. último	"A" 4851	4.
2.
2.2.	"A" 4015	1. 2°				According to Comm. "A" 4311, 4453, 4577, 5908, 6105, 6162 and 6305 (includes interpretative clarification).
2.3.	"A" 4311
2.4.	"A" 4311					According to Comm. "A" 6327.
2.5.	1° "A" 3528	1. 2°				According to Comm. "A" 4015 and 4147.
2° y último	"A" 4159	3.1. 5° y último				Section 3. of the informative regime on minimum cash and application of resources. Includes interpretative clarification.
2.6.	"A" 3528	1. 3°				According to Comm. "A" 4015, 4140, 4549, 4716, 5299, 6241 and 7003.
3.
3.1.	"A" 4140	II 1. 2°
3.2.	"A" 4311					Includes concept according to points 6. and 7.5. of Comm. "A" 2736.
4.
4.1.	"A" 4311
5.
5.1.	"A" 4311					According to Comm. "A" 6572.
5.2.	"A" 4311					According to Comm. "A" 5093 and 6244.
5.3.	1° "A" 2736	6.				According to Comm. "A" 6244. Includes interpretative clarification.
último	"A" 4311
5.4.	"A" 6231
5.5.	"A" 6572	2.
6.
6.1.	"A" 3987	1.				According to Comm. "A" 5560, 5945, 6069 and 6715.
6.2.	"A" 6069	6.
6.3.	"A" 5945	5.				According to Comm. "A" 6069.
6.4.	"A" 6884	1.
7.
7.1.	"A" 6765	1.				According to Comm. "A" 6819, 6839, 6981, 7104 and 7129. Includes interpretative clarification.
7.2.	"A" 6765	1.				According to Comm. "A" 6981 and 7104.
8.	"A" 6846	1.
9.
9.1.	"A" 4311					According to Comm. "A" 5493 and 5892.
9.2.	"A" 4311					According to Comm. "A" 5493 and 5892.
último	"A" 6662					According to Comm. "A" 7393.
10.
10.1.	"A" 6765	2.				According to Comm. "A" 7104.