Circular OPRAC 1-361 and LISOL 1-74: Operations with Related Clients and Credit Assistance Limits

BANCO CENTRAL DE LA REPUBLICA ARGENTINA __________________________________________________________________ COMUNICACION "A" 2140 15/09/93 __________________________________________________________________ TO FINANCIAL ENTITIES:
Ref.: Circular
OPRAC 1 - 361.
LISOL 1 - 74.
Operations with clients linked to financial entities and limits on credit assistance. Consolidated Text. We address you to deliver the consolidated text of the regulations on the topics cited in the reference, taking into account the provisions disseminated by Communications "A" 2109, 2120 and 2126:

"1. Replace, with effect from July 1993, the provisions of point 4.1. of Chapter I of Circular OPRAC - 1 with those contained in Annex I to this communication.

2. Establish, with validity from July 1993 and until
   a new regulation is established in the matter, that operations with directors, administrators and members of the control bodies of the financial entities referred to in point 4.2. of Chapter I of Circular OPRAC - 1, may not exceed, at any time, 5% of the computable equity responsibility of the entity on the last day of the month immediately preceding the one in question, measured individually for each of the aforementioned persons. These operations will be calculated together with those entered into with related clients - point 1. preceding - in order to observe the global limit established pursuant to point 2.4. of Annex I. To this effect, the existence of indirect linkage through common directors provided for in the second paragraph of point 4.2.2.1., will be determined in accordance with what is provided in point 1.1.3. of Annex I. Excesses to these limits are subject to the provisions of point 6.1. of Annex I.

3. Establish that, until 31.7.94, excesses to the relations
   referred to in point 2. preceding and points 2.1., 2.2., 2.4. and last paragraph of point 3. of Annex I, originated exclusively in the application of the new limits, will not constitute breaches to the extent that these excesses arise from operations pre-existing to 1.7.93. If such operations fall within the limits previously established, until 31.7.94 these excesses will not be subject to any charge, while the breaches to those previously valid limits will be subject to the charges and other provisions duly fixed. Entities that record excesses to the new limits, originated in pre-existing operations, must report such excesses and the conditions agreed for said operations, to the Superintendence of Financial and Currency Entities before 1.9.93. Until 31.10.93, forbearances, extensions, renewals or other express or tacit facilities agreed upon on ope- rations pre-existing to 1.7.93, will not be considered as new operations and, therefore, from 1.11.93, these forbearances, extensions, renewals or other facilities must be calculated for the purposes of the limits established in Annex I.

4. Replace, with effect from July 1993, the provisions
   of points 1. to 3. and 5. and 6. of Chapter II of Circular LISOL - 1 with those contained in Annex II to this communication.

5. Establish that, until 31.7.94, excesses to the relations
   referred to in points 2. and 3. of Annex II, originated exclusively in the application of the new limits, do not constitute breaches to the extent that these excesses arise from operations pre-existing to 1.7.93. If such operations fall within the limits previously established, until 31.7.94 these excesses will not be subject to any charge, while the breaches to those previously valid limits will be subject to the charges and other provisions duly fixed. Entities that record excesses to the new limits, originated in pre-existing operations, must report such excesses and the conditions agreed for said operations, to the Superintendence of Financial and Currency Entities before 1.9.93. Until 31.10.93, forbearances, extensions, renewals or other express or tacit facilities agreed upon on ope- rations pre-existing to 1.7.93, will not be considered as new operations and, therefore, from 1.11.93, these forbearances, extensions, renewals or other facilities must be calculated for the purposes of the limits established in Annex II.

6. Provide that financings and participations in the
   share capital of companies that provide services com- plementary to the activity developed by the fi- nancial entity, without prejudice to the application of the provisions contained in Annexes I and II, will be considered as fixed assets, from July 1993, for the purposes of determining the minimum capital required from August, in those cases where there is participation in the share capital of the same.

7. Establish, with effect from July 1993, that the
   coverage margins for reverse repos and for the purchases and sales of national public securities at term in the situations referred to in points 1.1.4.2. and 4.3.2. of
   Annex I to Communication "A" 1465 may be agreed at
   the satisfaction of the financial entities.

8. Replace, with effect from July 1993, the first paragraph
   of point 1. of the Annex to Communication "A" 467 (text according to Communication "A" 612) with the following:
   "The total of operations included in national or foreign currency, that each financial entity grants may not exceed 100% of the computable equity responsibility of the clients, established in accordance with the norms contained in point 6.1., whether natural or legal persons, groups or economic aggregates, linked or not. Participations in companies that do not have as their corporate object the provision of services complementary to the activity developed by the financial entity may not exceed 12.5% of their computable equity, without prejudice to which financial support for any concept may not exceed 100%."

9. Repeal, with validity from July 1993, the fol-
   lowing provisions:
   9.1. Global financing limits to directors or ad-
   ministrators and linked companies (points 4.3.1.2. and
   4.3.1.3. of Chapter I of Circular OPRAC - 1 and its
   modifications).
   9.2. Impediments to carry out intermediation operations
   with public securities and foreign currency with natural or legal persons linked to the financial entities (points 5.1. and 4.1. of Annexes I to the Communications "A" 1465 and "A" 1590, respectively).
   9.3. Treatment of excesses from operations with linked clients
   originated in the increase due to accumulation of positive results in participations in the share capital of companies whose object is linked to the provision of services complementary to the financial activity (Communication "A" 1873).
   9.4. Limit on investment in non-marketable securities
   (point 1. of Chapter III of Circular LISOL - 1; text according to Communication "A" 1883).
   9.5. Limit on investment in new issuances of shares with
   funds from the issuance of negotiable bonds of financial entities related to its computable equity responsibility (point 1.3.2.2. of the resolution disseminated through Communication "A" 1907).
   9.6. Treatment regarding credit grading of
   financings to stock exchange companies (second paragraph of point 2 of the resolution made known through Communication "A" 2056).

10. Establish that until 31.12.95 there will be no non-
    compliance with these norms for those participations in companies that do not have as their corporate object the provision of services complementary to the activity developed by the financial entity exceeding 12.5% of their computable equity, provided that such participations are pre-existing to
    1.7.93 and were included in the previously valid
    norms. Entities must provide to the Superintendence of Financial and Currency Entities a detail of such participations, before 1.9.93.

11. In the case of subsidiaries abroad, local banks must
    not deduct the balance sheet item "Subsidiaries Abroad" for the purposes of calculating the CPE. Likewise, they must present the accounting statements and complementary information on a consolidated basis, the same monthly accounting information regime applying to such subsidiaries as that which governs for a local branch.

12. Provide that, from 1.11.93, repurchase, forward,
    cash-settled and stock exchange pledge and collateral operations are covered by the limitations established in Annexes I and II, to the extent that the financial entity had already effected the payment (or delivered the agreed counter-
    part) and the delivery of the
    agreed counter-part was pending (or the agreed cash payment had not been received). In such circumstances, regardless of the accounting registration modality used, the party obliged to deliver the agreed counter-part or effect the agreed payment will be considered a credit subject, until the moment when these acts have occurred. Consequently, the operations mentioned in which no discrepancy in the fulfillment of the respective obligations is verified, are not calculable for the purposes of the relations established in Annexes I and II. Until 31.10.93, cash-settled operations in which the situation mentioned in the last part of the first paragraph of this point occurs (for example:
    transactions with currencies "value today" and "normal value") will be calculated according to the regulations in force on 30.6.93."

We salute you very attentively.
BANCO CENTRAL DE LA REPUBLICA ARGENTINA Juan Carlos Isi Alfredo A. Besio Deputy Manager of Standards Manager of Standards for Financial Entities for Financial Entities

ANNEXES

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I OPERATIONS WITH PERSONS OR COMPANIES OF THE PRIVATE	Annex I PRIVATE
I NON-FINANCIAL SECTOR LINKED	to the
I TO THE FINANCIAL ENTITIES	Com. "A" 2140
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1. Concepts.
   1.1. Natural and legal persons linked to the
   financial entity are considered to be:
   1.1.1. any company or person who, directly or
   indirectly, exercises control over the financial entity or any company or person who, directly or indirectly, is controlled by who or whoever exercises control over the financial entity;
   1.1.2. any company or person who, directly or
   indirectly, is controlled by the financial entity, which must take into account the provisions of article 28, item a), of Law
   21.526 (text according to Law 24.144) and its
   regulation;
   1.1.3. any company that has common directors with
   the company that exercises control over the fi- nancial entity or with the financial entity, provided that those directors form the simple majority of the directing bodies of each of those companies or financial entity;
   1.1.4. on an exceptional basis, by resolution of the
   Board of Directors upon proposal of the Superintendent of Financial and Currency Entities, any company or person who, as determined, possesses a relationship with the financial entity or with who controls it, which could result in financial harm to the financial entity.
   1.2. Control exists by a company or person over
   another when:
   1.2.1. such company or person, directly or
   indirectly, owns or controls 25% or more of the total votes of any instrument with voting rights in the other company;
   1.2.2. such company or person, directly or
   indirectly, has had 50% or more of the total votes of the instruments with voting rights in assemblies or meetings in which its directors or other persons exercising similar functions were elected;
   1.2.3. such company or person, directly or
   indirectly, holds participation in the other by any title, even if its votes are lower than what is provided in point 1.2.1., so as to have the necessary votes to form the social will

in shareholders' meetings or to adopt de- cisions in board meetings or similar body;
1.2.4. by resolution, the Board of Directors upon proposal of the
Superintendent of Financial and Currency En- tities, determines that such company or person, di- rectly or indirectly, exercises controlling influence over the direction and/or policies of the other company. Guidelines indicating controlling influence include, among others, the following:
1.2.4.1. the possession of a percentage of the capital
of the linked company that grants the votes necessary to influence the approval of its financial statements and in the distribution of profits, for which it must be taken into account how this is distributed the rest of the capital;
1.2.4.2. representation on the board or
higher administrative bodies of the linked company, for which it must also be taken into account the existence of agreements, circumstances or situations that could give direction to some minority group;
1.2.4.3. participation in the setting of
corporate policies;
1.2.4.4. the existence of important operations
with the linked companies;
1.2.4.5. the exchange of executive personnel;
1.2.4.6. the technical-administrative dependence of
the linked company.
1.3. Operations included are those recorded in the ac-
counting in the following balance sheet items:
1.3.1. loans;
1.3.2. other credits from financial intermediation;
1.3.3. goods in financial leasing;
1.3.4. participations in other companies;
1.3.5. diverse credits;
1.3.6. off-balance sheet debit accounts:

• Beneficiaries of agreed credits

• Beneficiaries of granted guarantees

• Beneficiaries of commitments for foreign trade operations

• Financial entities - Rediscounted documents
  The following operations will also be calculated:
  1.3.7. financings in all their modalities granted
  by and/or through subsidiaries abroad and banks abroad over which the local entity exercises control under the terms provided in point 1.2., when -in the latter case- they correspond to financing lines assigned to them by the local financial entity.
  1.3.8. financings, in all modalities, granted
  by the parent company or bank abroad that exercises control over the local financial entity under the terms contained in point 1.2., or by its branches in other countries, when they correspond to financing lines assigned to them by the local financial entity. Assignments in favor of financial entities of rights or credit titles when the obligors or drawers are third parties not linked, without responsibility for the linked assignors, will affect the credit margin that may be granted to the latter. Also calculated within that limit are the instru- ments purchased or discounted from third parties not linked -with or without responsibility- when the drawer, debtor, co- debtor or acceptor is a linked person.
  1.4. It is considered that two or more natural or legal persons
  form a set or economic group -linked or not to the financial entity- when, according to the criteria contained in point 1.1., the existence of linkage between them is determined.

2. Relations.
   2.1. The total of the operations included without guarantee of
   a linked company or person may not exceed, at any time, 5% of the computable equity responsibility of the entity on the last day of the month preceding the one in question. When it concerns a linked company that provides exclusively complementary services to the activity developed by the financial entity, the total of the operations without guarantee may reach up to 10% of said computable equity.
   2.2. Without prejudice to what is established in point 2.1., the total
   of the operations included of a linked company or person including operations with guarantees under the terms provided in point 4., may not exceed, at any time, 10% of the computable equity responsibility of the entity on the last day of the month preceding the one in question.

2.3. For the purposes of the limits established in points 2.1.
and 2.2., sets or economic groups of the pri- vate non-financial sector must be considered as a single client.
2.4. The total of the operations included of all the en-
tries or persons linked to the financial entity, may not exceed, at any time, 20% of the computable equity responsibility of the entity on the last day of the month preceding the one in question.

3. Exclusions.
   For the purposes of determining the relations indicated in point 2., the following will be excluded:
   3.1. The holding of securities with public offering subject to the
   regime of Law 17.811 (ordinary or preferred shares, negotiable bonds or other debt instruments and any other instrument of similar characteristics to all the aforementioned) of linked companies that are classified by another financial entity -not linked- in normal situation and that possess a market value widely available publicly -in the country or abroad-, not exceeding 10% of the residual value in circulation of each of the issuances placed in the case of bonds or of the subscribed and paid-up capital when it comes to shares. It is considered that there is widely available market value when daily quotations of relevant transactions are available in whose amount the eventual liquidation of that holding cannot significantly distort the quoted price. This exclusion will not be applicable when any of the securities of the issuing company has a rating lower than BB granted by a risk rating agency of the country.
   3.2. The financing of exports when the operations
   count with automatic reimbursement according to regimes of bilateral or multilateral foreign trade agree- ments.
   3.3. Prior resolution of the Board of Directors, upon proposal of the
   Superintendent of Financial and Currency Entities, the participations in the share capital of companies whose object is not complementary to the financial activity, when these investments have a transitory nature that, in no case, may be greater than 180 days.
   3.4. On an exceptional basis, the Superintendent of Financial and
   Currency Entities will determine additional and/or special exclusions -for persons or operations- in those particular cases where such exceptions are consistent with the spirit and objectives

of this norm.
The operations indicated in points 3.1. (considered at their market value) and 3.3., added to those included in the relations established in points 2.1. and 2.2., may not exceed, considered for each client or set or economic ag- gregate, the limits of 15% and 25% referred to in points
3.1. and 3.2. of Annex II, for which effect the
guarantees required according to the following point will be taken into account.

4. Computable Guarantees.
   4.1. For the purposes established in point 2.2. guarantees will be
   required, measured against the debt or equivalent concept, which may not be lower than:
   4.1.1. 100% when it comes to securities
   representative of obligations of the National Government, taking into account their market value.
   4.1.2. 100% in the case of certificates of deposit
   of money -in national or foreign currency- in the own creditor entity.
   4.1.3. 125% for private debt securities with public off-
   ering (Law 17.811), taking into account their market value.
   4.1.4. 125% in the case of invoices to consumers for co-
   llection, issued by public service companies providing electricity, gas, telephone services, drinking water and sewage, whose collection rights are assigned to the entity.
   4.1.5. 125% for credit card coupons.
   The market value of the securities referred to in points 4.1.1. and 4.1.3. must arise from daily quo- tations of relevant transactions in whose amount the eventual liquidation of the securities offered as guarantee cannot significantly distort the indicated value.
   4.2. The following may not be considered as guarantees:
   4.2.1. Participations in the share capital, securities or
   obligations issued by a company or person linked to the entity.
   4.2.2. Securities issued by non-linked clients
   that are classified by any financial entity in a situation other than normal or have a rating lower than BB granted by a risk rating agency of the country.
   4.2.3. preferred guarantees according to point 3.1.3.1.
   of the procedure norms of the "Statement of debtors' situation", except those admitted according to point 4.1.

5. Other provisions.
   Financial entities may not agree, directly or indirectly, new financing or renewal, extension, forbearance (express or tacit) of existing facilities (corresponding to be included or not in the relations established in points 2.1. and 2.2.), to companies or persons linked that are classified by any financial entity in a situation other than normal or any of whose titles has a rating lower than BB granted by a risk rating agency of the country.

6. Breaches.
   6.1. Excesses to the maximum relations established in the
   points 2.1., 2.2., 2.4. and 3. (last paragraph) are sub- ject to the charge -currently fixed at 18% nominal annual- and other provisions referred to in point 4.3.2. of
   Chapter I of Circular OPRAC - 1 (text according to Commu-
   nication "A" 2019).
   6.2. The application of what is provided in the previous point may
   not imply the overlap of charges when, regarding the same client, excesses to the relatio- ns established in points 2.1. and 2.2. and in the last paragraph of point 3. are verified.
   6.3. Non-compliance with the deadline established in point 3.3.
   determines the recalculation of the positions of the corres- ponding periods and, if applicable, the application of the provisions referred to in point 6.1.
   6.4. Departures from what is established in point 5.
   determine the application of the charge and other provisions mentioned in point 6.1. on the total of the new financings granted, so these are not considered for the purposes of determining the relations established in points 2.1., 2.2. and 3. (last paragraph)."

+--------------------------------------------------+-------------+ I I Annex II RISK FRAGMENTATION I a la I I I Com. "A" 2140I +--------------------------------------------------+-------------+

1. Operations Included.
   The operations registered in the accounting under the following balance sheet items are covered by the relationships in points 2. and 3.:
   1.1. loans;
   1.2. other credits from financial intermediation;
   1.3. financial lease assets;
   1.4. participations in other companies;
   1.5. other credits;
   1.6. debtor off-balance sheet accounts:

• Beneficiaries of granted credits
• Beneficiaries of granted guarantees
• Beneficiaries of commitments for foreign trade operations
• Financial entities - Rediscounted documents
  The following operations shall also be computed:
  1.7. financings in all their modalities granted by and/or
  through subsidiaries abroad and by foreign banks over which the local entity exercises control under the terms provided in point 1.2. of Annex I, when -in the latter case- they correspond to financing lines assigned to them by the local financial entity.
  1.8. financings, in all modalities, granted by the parent
  company or foreign bank that exercises control over the local financial entity under the terms contained in point 1.2. of Annex I, or by its branches in other countries, when they correspond to financing lines assigned to them by the local financial entity.

2. Risk Concentration.
   2.1. Concept.
   It is the sum of the operations included -net of admitted exclusions- carried out with companies or persons or sets or economic groups -linked or not- when those, measured by each of those clients, are equivalent or superior at any moment to 10% of the computable equity of the entity on the last day of the month prior to the one corresponding. In the case of linked clients, the total of the operations contracted with them shall be considered when they reach the cited percentage.
   2.2. Limit.
   It may not exceed, at any moment:
   2.2.1.: 3 times the computable equity of the entity on the last day of the month prior to the one corresponding, without considering local fi- nancial entities (parent companies or subsidiaries in the country and/or abroad). 2.2.2.: 5 times said computable equity for the set of clients included according to point 2.1., including local financial entities, without prejudice to observing the cap referred to in the preceding point regarding the rest of the clients. For the purposes of this limit, demand placements in the Banco de la Nación Argentina (New York branch) are excluded up to the amount of the lending capacity under the regime of Communication "A" 1820 and its complementary provisions for the period in question.
3. Limits on Operations with Clients.
   They may not exceed, at any moment, the percentages indicated below, which must be applied to the computable equity (RPC) of the entity on the last day of the month prior to the one corresponding:
   3.1. The total of the operations included without guarantee
   from a non-linked company or person and those contracted with linked clients referred to in the last paragraph of point 3. of Annex I, except those mentioned in points
   3.5. and 3.6.: 15% of the RPC.
   3.2. Without prejudice to what is established in point 3.1., the total
   of the operations included from a non-linked company or person, including operations with guarantees under the terms provided in point 5., and those contracted with linked clients referred to in the last paragraph of point 3. of Annex I, except those mentioned in points 3.5. and 3.6.: 25% of the RPC. To determine the available credit assistance margin for each client within this tier, 33% of the value of liens or guarantees constituted on their assets (debt or credit instruments, shares, credit card coupons, real estate or movable property, etc.), offered as guarantee for the fulfillment of obligations assumed by third parties regarding credit facilities granted to them by the entity, must be computed.
   3.3. The total holding of non-marketable shares, excluding
   participations in companies that provide services complementary to the financial entity's activity and participations necessary to obtain the provision of public services: 15% of the RPC.
   3.4. The total holding of marketable or non-marketable shares,
   quota shares of common investment funds, and operations of guarantees and stock market repos, when regarding these latter transactions it is not possible to identify the credit subject: 50% of the RPC. Marketable shares must have a widely available market value according to the definition contained in the second paragraph of point 3.1. of Annex I. When this condition is not met, they shall be considered within the margin referred to in point 3.3. Shares and quota shares shall be computed at said market value. In the case of the latter, information provided by the management company shall be taken into account.
   3.5. Financings granted to another local financial entity,
   in the country or in foreign subsidiaries, including balances in correspondent accounts, except where they are accounts computable for the integration of minimum cash in national and foreign currency: 25% of the RPC. Placements in demand accounts at the Banco de la Nación Argentina (New York branch) are also excluded for these purposes, up to the amount of the lending capacity under the regime of Communication "A" 1820 and its complementary provisions for the period in question. Placements exceeding said amount and balances in demand accounts at that branch shall be computed within what is established in the first paragraph of this point.
   3.6. Balances in demand accounts and placements or
   financings in each correspondent bank abroad, except those made in accounts computable for the integration of minimum cash referred to in Annex I to Communication "A" 1820:

3.6.1. in banks included in the highest quality categories
for investment ("investment grade"), according to rating granted by an international risk rating agency (Moody's, Standard and Poors or equivalent): 25% of the RPC.
3.6.2. in other banks: 5% of the RPC.
Non-compliance with these limits shall not be considered for excesses in balances in demand accounts at correspondents that, on a temporary and circumstantial basis, originate from client operations (for example: those related to the settlement of foreign trade operations or other types of credits ordered by third parties, without equity liability for the entity).
3.7. For the purposes of the limits established in points 3.1.
and 3.2., sets or economic groups in the non-financial private sector shall be considered as a single client. For this purpose, the definitions in point 1.4. of Annex I shall be taken into account.
3.8. Regarding operations with linked companies or persons
in the non-financial private sector, the provisions of
Annex I shall be observed, without prejudice to considering
the specific norms of this annex that are applicable.
4. Exclusions.
For the purposes of determining the relationships indicated in points 2.1., 3.1. and 3.2., the following shall be excluded:
4.1. Export financing when the operations
have automatic reimbursement according to regimes of bilateral or multilateral foreign trade agreements.
4.2. For assignors without liability, the assignment of
rights or credit titles in favor of financial entities. These operations will affect the maximum financial assistance margin granted to the drawers, debtors, co-debtors or acceptors of the respective ins- truments, for which a pertinent evaluation as credit subjects must be carried out.
4.3. Financings granted to the parent company of the
local financial entity or to its branches in other countries, without prejudice to observing what is provided in point 1.8.
4.4. Holding of quota shares of common investment funds.
4.5. Credits with the Central Bank, regardless of the
modality of the operation.

5. Computable Guarantees.
   5.1. For the purposes established in point 3.2., guarantees
   shall be required, measured against the debt or equivalent concept, which may not be lower than:
   5.1.1. 100% when it concerns public securities of the
   National Government, taking into account their market value, and in the case of money deposit certificates -in national or foreign currency- in the creditor entity itself. Financings to the National Government shall be considered as guaranteed.
   5.1.2. 125% in the case of the remaining
   preferred guarantees according to point 3.1.3.1. of the procedure norms of the "Statement of debtors' situation", with the additions provided by point 1. of the resolution disseminated through Communication "A" 2074, taking into account, if applicable, the respective market value and by point 14. of the resolution given known by Communication "A" 2126.
   5.1.3. 125% for private debt titles with public offering
   (Law 17.811), taking into account their market value.
   5.1.4. 125% in the case of invoices to consumers for
   collectible, issued by public service companies providing electricity, gas, telephone services, drinking water and sewage, whose collection rights are assigned to the entity.
   5.1.5. 125% for credit card coupons.
   The market value of the titles referred to in points 5.1.1. and 5.1.3. must arise from daily quotations of relevant transactions in whose amount the eventual settlement of the titles offered as guarantee cannot significantly distort the stated value.
   5.2. The following may not be considered as guarantees:
   5.2.1. Participations in the share capital, titles or
   obligations issued by a company or person linked to the entity.
   5.2.2. Securities issued by non-linked clients that are
   classified by any financial entity in a situation other than normal or have a rating lower than BB granted by a risk rating agency in the country.

6. Non-Compliance.
   6.1. Excesses of the maximum relationships established in
   points 2. and 3. are subject to the charge -currently fixed at 18% nominal annual- and other provisions referred to in point 3.2. of Chapter V of Circular LISOL- 1 (text according to Communication "A" 2019).
   6.2. The application of what is provided in the previous point may not
   imply the overlapping of charges when, regarding the same client, excesses of the relationships established in points 2.2., 3.1. and 3.2. are verified.
   6.3. Non-compliance with what is established in the second paragraph
   of point 4.2. -credit evaluation- will determine exce- sses by an amount equivalent to the financings granted, which will be subject to the provisions mentioned in point 6.1.

7. Credit Portfolio Distribution.
   Particular attention must be paid to the diversification of the credit portfolio, in its different financing modalities, among the largest possible number of persons or companies and among the different economic activities, in order to avoid risk concentration by operations with a reduced set of persons or companies or that refer to a specific sector that could significantly compromise the equity of financial entities.