Distribution of results: Adjustments

2021 - YEAR OF TRIBUTE TO THE NOBEL PRIZE IN MEDICINE DR. CÉSAR MILSTEIN

COMMUNICATION “A” 7312
24/06/2021

TO FINANCIAL INSTITUTIONS:

Ref.: Circular
CONAU 1-1477:

Distribution of results. Adjustments.

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

“- Extend until 31.12.21 the suspension of the distribution of results of financial institutions established in point 7.3. of the rules on “Distribution of results”.”

Likewise, we send you the pages that, in replacement of those previously provided, should be incorporated into the reference rules. In this regard, it is recalled that on this Institution's website www.bcra.gob.ar, by accessing “Financial System - LEGAL AND REGULATORY FRAMEWORK - Compilations and summaries - Ordered texts of general regulations”, you will find the modifications made with texts highlighted in special characters (strikethrough and bold).

We greet you attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Darío C. Stefanelli
Principal Manager of Issuance and
Regulatory Applications
María D. Bossio
Deputy General Manager of Financial Regulation

ANNEX

CENTRAL BANK OF THE ARGENTINE REPUBLIC

B.C.R.A. DISTRIBUTION OF RESULTS
Section 7. Transitional provisions.

7.1. The countercyclical capital buffer that financial institutions must apply to their exposures in Argentina, in accordance with the provisions of point 4.2., is established, as of 1.4.16, at 0 %.

7.2. For the purposes of determining the distributable result, the increase in computable equity responsibility (RPC) resulting from the application of point 11.4. of the rules on “Minimum capital of financial institutions” and the lower provisions and higher RPC resulting from the treatments established in point 2. of Communication “A” 6946 (and amendments) –for financing to MSMEs destined for the payment of salaries– and in point 3. of Communication “A” 7181 –which postponed until 1.1.22, for financial institutions of groups B and C, the application of point 5.5 of IFRS 9– must be deducted from the computations provided in Sections 2. and 3.

7.3. The distribution of results of financial institutions is suspended until 31.12.21.

Version: 9th. COMMUNICATION “A” 7312 Effective:
25/06/2021 Page 1

B.C.R.A. ORIGIN OF THE PROVISIONS CONTAINED IN THE RULES ON “DISTRIBUTION OF RESULTS”

ORDERED TEXT	SOURCE RULE	OBSERVATIONS
Sect.	Point	Para.	Com.	Annex	Chap.	Sect.	Point	Para.
1.			"A" 4589				1.		According to Com. "A" 5827 and 6464.
2.		1st and 2nd	"A" 4589				2.		According to Com. "A" 4591 (point 6.), 5273, 5827, 6327 and 6464.
	2.1.		"A" 6327				12.
	2.2.		"A" 6396				4.
	2.3.		"A" 6327				12.
	2.4.		"A" 4589				2.3.
	2.5.		"A" 4589				2.4.
		last	"A" 6327				26.
3.		1°	"A" 4589				3.		According to Com. "A" 4591 (point 8.), 5072, 5273, 5827, 5985, 6464 and "B" 9104.
	3.1.		"A" 4589				3.1.		According to Com. "A" 4591 (point 8.) and 6428.
	3.2.		"A" 4589				3.3.	iv)	According to Com. "A" 4591 (point 8.) and "B" 9104.
	3.3.		"A" 4589				3.3.		According to Com. "A" 4591 (point 8.), 6428 and 6464.
	3.4.		"A" 5737				4.
		last	"A" 4589				1.1. to 1.4.		According to "A" 4591, 5072 and 6464.
4.			"A" 5827
5.			"A" 4591				1.		According to Com. "A" 5282 and 5827.
	5.1.		"A" 4591				1.		It incorporates the interpretative criterion of Com. "C" 46841. According to Com. "A" 5393.
	5.2.		"A" 4591				1.		According to Com. "A" 4686, 4702, 5072, 5180, 5282, 5369, 5580, 5827, 6013, 6464 and "B" 9104.
6.			"A" 6768
7.	7.1.		"A" 5938
	7.2.		"A" 6946				3.		According to Com. "A" 7007, 7108, 7143 and 7181.
	7.3.		"A" 6939						According to Com. "A" 7007, 7035, 7181 and 7312.