Circular OPASI 2 - 468: Application of the Deposit Guarantee Insurance System. Adjustments

“2015 - YEAR OF THE BICENTENNIAL OF THE CONGRESS OF THE FREE PEOPLES” COMMUNICATION “A” 5710 10/02/2015 TO FINANCIAL ENTITIES:
Ref.: Circular
OPASI 2 - 468
Application of the deposit guarantee insurance system. Adjustments.

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We address you to inform you that this Institution has adopted the following resolution:

“1. Incorporate as the second paragraph of point 2. of the norms on “Application of the deposit guarantee insurance system” the following:

“When fixed-term deposits in US dollars of the private non-financial sector of the country are applied to the subscription of Internal Letters of the Central Bank of the Republic of Argentina in US dollars, the normal contribution shall be equivalent to 0.015%. For these purposes, for its calculation, the monthly average of daily balances of the net position of said Letters, corresponding to the second month immediately preceding, shall be considered.”

2. Establish that the provisions of the second paragraph of point 2. of the norms on “Application of the deposit guarantee insurance system” -text according to point 1. of this communication- shall apply to deposits made from 11.2.15.

3. Substitute, with effect from 1.3.15, the first paragraph of point 4. of the norms on “Application of the deposit guarantee insurance system” with the following:

“The normal, additional, and advance contributions shall be debited from the current accounts of the entities opened at the Central Bank of the Republic of Argentina no later than the fifth business day of the month to which they correspond.”

We send you the sheets that, in replacement of those previously provided, must be incorporated according to what is provided in points 1. and 2. of this communication in the referenced norms.

Finally, it is recalled that on the website of this Institution www.bcra.gob.ar, accessing “regulations” (“organized texts”), the modifications made with texts highlighted in special characters (strikethrough and bold) will be found.

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We greet you attentively.
CENTRAL BANK OF THE REPUBLIC OF ARGENTINA
Matías A. Gutiérrez Girault Darío C. Stefanelli Manager of Emission of Norms Deputy General Manager of Norms

ANEXO

• Index -

1. SEDESA shareholder trust.
2. Normal contribution.
3. Additional contribution.
4. Integration of contributions.
5. Scope of the guarantee.
   5.1. Deposits included.
   5.2. Exclusions.
   5.3. Coverage. Amount and formalities.
6. Instrumentation.
7. Determination of the additional contribution.
   7.1. Entities with "CAMELS" rating.
   7.2. Entities without "CAMELS" rating.
8. Applicable legislation.
   8.1. Law 24.485.
   8.2. Decree 540/95 and its amendments.
9. Transitional provisions.
   Correlation table.
   B.C.R.A.

ORGANIZED TEXT OF THE NORMS ON
APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM Version: 6th COMMUNICATION “A” 5710 Validity:
11/02/2015

1. SEDESA shareholder trust.
   The participation in the trust that acts as shareholder of the company Seguro de Depósitos S.A. (SEDESA) arises from providing the contribution effectively made by each entity regarding the contributions collected from the entire system, corresponding to each calendar year. The non-exercise of the option to participate by an entity will determine the proportional increase in the participation of the other entities.

2. Normal contribution.
   The entities covered by the Financial Entities Law must monthly allocate to the Deposit Guarantee Fund (FGD) a normal contribution equivalent to 0.06% of their monthly average of daily balances of the items listed in point 5.1., registered in the second month immediately preceding. For these purposes, the Bank of the Argentine Nation shall adhere to what is provided in the second paragraph of article 6º of Decree N° 540/95 (text according to Decree N° 1292/96 - article 3º).

When fixed-term deposits in US dollars of the private non-financial sector of the country are applied to the subscription of Internal Letters of the Central Bank of the Republic of Argentina in US dollars, the normal contribution shall be equivalent to 0.015%. For these purposes, for its calculation, the monthly average of daily balances of the net position of said Letters, corresponding to the second month immediately preceding, shall be considered.

The Central Bank of the Republic of Argentina may require the integration, as an advance, of the equivalent of up to twenty-four (24) minimum normal contributions, with a notice of no less than thirty calendar days, to cover resource needs of the Fund.

3. Additional contribution.
   In addition to the normal contribution referred to in point 2., entities must make a differentiated additional contribution depending on the result obtained from the weighting of the following factors, based on the methodology contained in point 7.

3.1. The rating assigned to the entity according to the evaluation carried out by the Superintendence of Financial and Exchange Entities.

3.2. The ratio of excess integration of computable equity responsibility with respect to the minimum capital requirement. For this effect, to the computable equity responsibility, provisions for uncollectible risk constituted in excess of the minimums established in the pertinent norms will be added.

3.3. The quality of the active portfolio measured by:

3.3.1. Minimum provisions required for uncollectible risk regarding financings.

B.C.R.A. APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM Version: 8th COMMUNICATION “A” 5710 Validity:
11/02/2015

3.3.2. Computable assets to determine the required minimum capital, weighted as established in the norms on “Minimum capitals of financial entities”, with respect to total assets.

The additional contribution resulting from the application of the aforementioned factors shall not exceed once the normal contribution.

4. Integration of contributions.
   The normal, additional, and advance contributions shall be debited from the current accounts of the entities opened at the Central Bank of the Republic of Argentina no later than the 12th day of the month to which they correspond.

In the case that updated information is not available to establish the pertinent calculation base, the amount shall be determined based on the last available data, increasing by 10% the base obtained.

5. Scope of the guarantee.
   5.1. Deposits included.
   The deposits in pesos and in foreign currency constituted in the participating entities under the form of:

5.1.1. Current account.

5.1.2. Demand account opened in Cooperative Credit Boxes.

5.1.3. Savings account.

5.1.4. Fixed-term deposit.

5.1.5. Salary/social security account, basic, universal free, and special.

5.1.6. Term investments.

5.1.7. Immobilized balances arising from the preceding concepts.

5.2. Exclusions.

5.2.1. Transferable fixed-term deposits whose ownership has been acquired by way of endorsement, even if the last endorsee is the original depositor.

5.2.2. Deposits that offer incentives or remuneration different from the interest rate and, in case, to the amount accrued by application of the “CER”, whatever the denomination or modality they adopt (insurance, lotteries, tourism, provision of services, etc.).

B.C.R.A. APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM Version: 10th COMMUNICATION “A” 5710 Validity:
11/02/2015

B.C.R.A. APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM

9. Transitional provisions.
   The provisions of the second paragraph of point 2. are applicable to deposits made from 11.2.15.

Version: 1st COMMUNICATION “A” 5710
Validity:
11/02/2015

B.C.R.A.
ORIGIN OF THE PROVISIONS CONTAINED
IN THE ORGANIZED TEXT OF THE NORMS ON
“APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM”

ORGANIZED TEXT ORIGIN NORM
Point Paragraph Com. Annex Point Paragraph
OBSERVATIONS
1. “A” 2337 I 1. 1° and 2°
1° “A” 2337 I 2. 1° S/Dec. 1292/96, Com. “A”
2807, 3358, 4206, 4271 and
5641.
2° “A” 5710 1.
2.
3° “A” 2337 I 2. 2° S/Dec. 1292/96.
3. 1° “A” 2337 I 3. 1°
3.1. “A” 2337 I 3.1.
3.2. “A” 2337 I 3.2.
3.3. “A” 2337 I 3.3.
3.3.1. “A” 2337 I 3.3.1.
3.3.2. “A” 2337 I 3.3.2.
3. 2° “A” 2337 I 3. 2°
1° “A” 2337 I 4. 2° and 3° S/Com. “B” 5806 (8th paragraph) and “A” 3068.
4.
2° “A” 2337 I 4. 4°
5. “A” 2337 I 6.
5.1. 1° “A” 2337 I 6.1. 1°
5.1.1. “A” 2337 I 6.1. i)
5.1.2. “A” 5108
5.1.3. “A” 2337 I 6.1. ii)
5.1.4. “A” 2337 I 6.1. iii)
5.1.5. “A” 2337 I 6.1. iv) S/Com. “A” 5091, 5108, 5164
and 5234.
5.1.6. “A” 2482 1. 2°
5.1.7. “B” 5806 3° S/Com. “A” 2807.
5.2. “A” 2337 I 6.4. S/Com. “A” 2399.
5.2.1. “A” 2337 I 6.4.1. S/Com. “A” 2399.
5.2.2. “A” 2337 I 6.4.2. S/Com. “A” 2399, 4681 and
4874.
5.2.3. “A” 2337 I 6.3. S/Com. “A” 2777, 3358, 5108
5234, 5640 and 5654. Includes interpretative clarification.
5.2.4. “A” 2337 IV S/Dec. 540/95, art. 12, item c)
5.2.5. “A” 2337 I 6.2. S/ Com. “A” 5520.
5.2.6. “A” 2337 IV S/Dec. 540/95, art. 12, item c)
5.2.7. “A” 2807 5.2.7.
5.3. “A” 2337 I 6. S/Dec. 540/95.
5.3.1. “A” 2337 I 6.5. S/Com. “A” 4681, 5170 and
5641.
5.3.2. “A” 2337 I 6.7. 1° S/Dec. 540/95 and Com. “A”
5170 and 5641.
5.3.3. “A” 2337 I 6.7. 2° S/Dec. 540/95 and Com. “A”
5170 and 5641.
5.3.4. “A” 2337 I 6.8. S/Dec. 540/95.
5.3.5. “A” 2337 I 6.9.

APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM ORGANIZED TEXT ORIGIN NORM Point Paragraph. Com. Annex Point Paragraph OBSERVATIONS
6. “A” 2337 I 7. S/Com. “A” 2399, 3270,
4874, 5170, 5641 and 5659.
Includes clarification interpretative. Dec. 1292/96.
7. 1° “A” 2337 II 1. S/Com. “A” 2561.
7.1. “A” 2337 II 1. S/Com. “A” 2561, 4040, 5369
and 5417.
7.2. “A” 2337 II 2. S/Com. “A” 2561.
8. “A” 2807 II and III
8.1. “A” 2807 II S/Law 25.089.
8.2. “A” 2807 III S/Dec. 1292/99 and Com. “A”
4206.
9. “A” 5710 2.