Instructions of Banco de Portugal

Instruction No. 2/2007

SUBJECT: Information on the evolution of the credit portfolio

Considering that the credit portfolio represents a significant portion of the assets of credit institutions; Considering that the evolution of the credit portfolio is a relevant element for monitoring credit quality indicators; Banco de Portugal, in the exercise of the competence conferred on it by Article 120 of the General Regime of Credit Institutions and Financial Companies, approved by Decree-Law No. 298/92, of 31 December, determines the following:

1. Credit institutions, financial companies and branches in Portugal of credit institutions and financial companies headquartered in countries not belonging to the European Union must submit to Banco de Portugal the information elements provided for in the annex to this Instruction, on an individual basis.

2. Without prejudice to the preceding paragraph, entities that, under paragraph 7 of Notice No. 8/94, published in the Diário da República, II Series, of 15 November, are responsible for providing information on a consolidated basis to Banco de Portugal, must submit the elements provided for in the annex to this Instruction, also on a consolidated basis.

3. Without prejudice to the provisions of the preceding paragraphs, institutions must additionally submit, on a consolidated basis or on an individual basis, as applicable, qualitative and quantitative information relating to the last quarter, which allows a better understanding of the reported elements, namely:

• Institutional breakdown, as defined in the Table “S - Institutional Sectors”, of the Annex to Instruction No. 19/2002 of Banco de Portugal, published in BO No. 8, of 16 August, regarding the materially most relevant movements of the credit portfolio to clients, included in the first table of the model annexed to this Instruction;

• Sectoral breakdown, as provided for in the Portuguese Classification of Economic Activities (CAE - Rev. 2.1, with detail at the second level) of the materially most relevant movements of the credit portfolio to clients, included in the first table of the model annexed to this Instruction;

• Regarding assignment operations, identification of all risks assumed by the assigning institution or by another entity of the group to which it belongs, towards entities that have acquired credits, within the scope of the said operations.

  4. Without prejudice to the provisions of this Instruction, Banco de Portugal may additionally request the information that, in this context, it deems necessary, taking into account the specific characteristics of the institutions concerned.

  5. The information elements referred to in paragraphs 1 to 3 of this Instruction must be sent to Banco de Portugal, quarterly, by the end of the month following the quarter to which they relate.

  6. The information elements referred to in paragraphs 1 and 2 of this Instruction must be provided to Banco de Portugal through electronic data transmission, namely via BPnet, the electronic communication system created by Instruction No. 30/2002, published in BO No. 10, of 15 October, or through delivery, at the Bank, of the respective magnetic medium, in accordance with the technical specifications distributed by Banco de Portugal for this purpose, and in that case, it must be sent to the following address:

BANCO DE PORTUGAL
Department of Banking Supervision
Rua Francisco Ribeiro, 2 - 5th
1150-165 LISBON

7. Banco de Portugal may waive the submission of the information elements provided for in this Instruction, upon a duly substantiated request.

8. The reporting of the elements referred to in this Instruction begins with the information relating to 31 December 2006, and these elements must be sent by 31 January 2007.

9. Without prejudice to the preceding point, by 31 January 2007 the elements relating to 31 December 2005 must also be sent.

10. This Instruction enters into force on 23 January 2007.