Minimum Capital Requirements for Financial Institutions. Debtor Classification. Credit Management. Credit Grading. Adjustments

COMMUNICATION “A” 6221 17/04/2017
TO FINANCIAL INSTITUTIONS:
Ref.: Circular
LISOL 1 - 730
OPRAC 1 - 883
Minimum capital of financial institutions. Debtor classification. Credit management. Credit grading. Adjustments .

---

We address you to inform you that this Institution adopted the following resolution:
“1. Replace points 4.2.3. and 4.7.1. of the rules on “Minimum capital of financial institutions” with the following:
“4.2.3. To the non-financial public sector for financing granted to social security beneficiaries or public employees –in both cases with a discount code–, to the extent that such transactions are denominated in pesos, the source of funds is in that currency and the instalments of all financing of the entity that have a periodic amortization system do not exceed, at the time of the agreements, thirty percent (30%) of the income of the debtor and/or, where applicable, of the co-debtors. 0” “4.7.1. Financing to natural persons –when the total instalments for financing of the entity that have a periodic amortization system do not exceed, at the time of the agreements, thirty percent (30%) of the income of the debtor and/or, where applicable, of the co-debtors– and to MSMEs. 75”
2. Replace point 5.1.2.3. of the rules on “Debtor classification” with the following:
“5.1.2.3. Loans to Microcredit Institutions –up to the equivalent of 40% of the reference amount established in point 3.7.– and to microentrepreneurs (as provided in point 1.1.3.4. of the rules on “Credit management”).”
3. Replace subparagraphs ii) and iii) of paragraph a), subparagraphs ii), iii) and the first paragraph of subparagraph v) of paragraph b) of point 1.1.3.3., and subparagraph ii) and the last paragraph of subparagraph iii) of paragraph a) of point 1.1.3.4. of the rules on “Credit management” with the following:

-2-
“ii) Individual limit.
The capital owed may at no time exceed the amount equivalent to 8 (eight) times the Minimum, Vital and Mobile Wage established by the National Council for Employment, Productivity and the Minimum, Vital and Mobile Wage for monthly workers who work the full legal working day per client, under the French or German amortization system. iii) Global portfolio limit. 20% of the computable equity of the entity for the month prior to the corresponding one. Said limit shall be computable for the purposes of calculating the global limit provided in point 1.1.3.4., paragraph a), subparagraph iii), in the case that the entity has also granted financing under that modality (loans for microentrepreneurs).” “ii) Individual limit.

• For natural persons the estimated instalment/income ratio must not exceed 50%.
  For the purposes of verifying the maximum ratio provided above, the instalments of all financing of the financial institution that have periodic amortization must be taken into account, without considering the instalments of loans from other entities. Consequently, the margins agreed for current account overdrafts and the purchase limits of credit cards –in both cases, both the used and the available–, as well as pre-agreed personal loans –to the extent that they have not yet been formalized or disbursed to the client–, shall not form part of the numerator of the estimated instalment/income ratio because they do not have periodic amortization. However, those instalments that the client has for financed purchases under the credit card system must be considered within the concept of “instalments”. The income and instalments to be considered shall be those of the debtor and/or, where applicable, of the co-debtors.
• For financing to MSMEs, the capital owed may at no time exceed in its entirety the equivalent of 15% of the reference amount established in point 1.11.
  iii) Global limit for financing to MSMEs.
  20% of the computable equity of the entity for the month prior to the corresponding one.”
  “v) The client's file must record the evaluation carried out in accordance with this procedure and, in the case of natural persons, the estimated income of the debtor and/or, where applicable, of the co-debtors.” “ii) Individual limit. The capital owed may at no time exceed the amount equivalent to 50 (fifty) times the Minimum, Vital and Mobile Wage established by the National Council for Em-

-3- ployment, Productivity and the Minimum, Vital and Mobile Wage for monthly workers who work the full legal working day per client. In the event that the client already has a loan granted according to the provisions of point 1.1.3.3., paragraph a), the residual capital owed for both types of financing may not exceed the aforementioned limit.” iii) Global limit for financing. “The total financing granted under the modalities established in points 1.1.3.3., paragraph a), –without exceeding the specific limit of 20%– and 1.1.3.4., paragraph a), may not exceed the aforementioned limit of 30%.”
4. Replace points 2.2.3. and 2.2.4. of the rules on “Credit grading” with the following:
“2.2.3. Mortgage loans for own and permanent housing to end users, which have been granted observing a sufficient margin of guarantee against an adequate appraisal of the mortgaged assets and weighing the payment capacity from the regular income of the borrowers, so that the initial burden does not exceed 30% of the income of the debtor and/or, where applicable, of the co-debtors.
2.2.4. Personal and family loans granted based on the possibilities of payment of the services by the users derived from their regular income, when those instalments do not exceed, at the time of the agreements, 30% of the income of the debtor and/or, where applicable, of the co-debtors.”
On the other hand, we send you in annex the pages that, replacing those previously provided, should be incorporated into the ordered texts of the reference. Likewise, it is recalled that on the page of this Institution www.bcra.gob.ar, accessing “Financial and Payment Systems - LEGAL AND REGULATORY FRAMEWORK - Orderings 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 Matías A. Gutiérrez Girault Darío C. Stefanelli Manager of Issuance of Rules Principal Manager of Issuance and Regulatory Applications
ANNEX

Concept Weighting factor

• in % -
  4.1. Cash and cash equivalents.
  4.1.1. Cash in vault, in transit (when the financial institution assumes the responsibility and risk of transfer) and in ATMs. 0
  4.1.2. Current and special accounts at the Central Bank of the Argentine Republic and payment orders charged to the BCRA. 0
  4.1.3. Coined or bar gold of “good delivery”, counting in the latter case with the seal of any of the refining, smelting, assaying, former assaying and former smelting firms included in the list made known by the BCRA. 0
  4.1.4. Cash items that are in the process of being received (checks and drafts for collection), cash in cash transport companies and cash in custody at financial institutions. 20
  4.2. Exposure to governments and central banks.
  4.2.1. To the BCRA in pesos, when its source of funds is in that currency. 0
  4.2.2. To the National Government and to provincial and municipal governments and of the Autonomous City of Buenos Aires in pesos, when their source of funds is in that currency. 0
  4.2.3. To the non-financial public sector for financing granted to social security beneficiaries or public employees –in both cases with a discount code–, to the extent that such transactions are denominated in pesos, the source of funds is in that currency and the instalments of all financing of the entity that have a periodic amortization system do not exceed, at the time of the agreements, thirty percent (30%) of the income of the debtor and/or, where applicable, of the co-debtors. 0
  4.2.4. To the non-financial public sector and to the BCRA. Others.
  Rating
  AAA to
  AAA+ to
  ABBB+ to
  BBBBB+ to
  BBelow
  BUnrated
  Risk weighting
  0% 20% 50% 100% 150% 100%
  MINIMUM CAPITAL OF FINANCIAL INSTITUTIONS
  B.C.R.A.
  Section 4. Risk weighting table.
  Version: 10th. COMMUNICATION “A” 6221
  Effective:
  18/4/2017

4.4.2. Others. The risk weighting corresponding to one category less favorable than that assigned to exposures with the National Government in foreign currency shall be applied, in accordance with the provisions of point 4.2.4., with a maximum cap of 100%, except that the rating is lower than B-, in which case the risk weighting shall be 150%.
4.5. Exposure to foreign financial institutions, according to the credit rating assigned to the sovereign of the jurisdiction where they are constituted.
.
Rating
AAA to
AAA+ to
ABBB+ to
BBBBB+ to
BBelow
B- Unrated
Risk weighting
20% 50% 100% 100% 150% 100%
4.6. Exposure to companies and other legal persons of the country and abroad –including exchange, insurance, stock exchange entities and companies of the country to which the treatment of the non-financial private sector is granted based on the provisions of Section 1. of the rules on “Financing to the non-financial public sector”–, except as provided in point 4.12. 100
4.7. Exposures included in the retail portfolio.
4.7.1. Financing to natural persons –when the total instalments for financing of the entity that have a periodic amortization system do not exceed, at the time of the agreements, thirty percent (30%) of the income of the debtor and/or, where applicable, of the co-debtors– and to MSMEs. 75
4.7.2. Others. 100
4.8. Exposures guaranteed by reciprocal guarantee companies or public guarantee funds registered in the Registries enabled in the BCRA. 50
4.9. Financing with first-degree mortgage guarantee, and whatever its degree of priority provided that the entity is the creditor in all degrees, on residential housing, to the extent that the debt balance at no time exceeds the appraisal value of the mortgaged property.
4.9.1. Single, family and permanent occupancy.
MINIMUM CAPITAL OF FINANCIAL INSTITUTIONS
B.C.R.A.
Section 4. Risk weighting table.
Version: 10th. COMMUNICATION “A” 6221
Effective:
18/4/2017

MINIMUM CAPITAL OF FINANCIAL INSTITUTIONS
ORDERED TEXT ORIGINATING RULE
Section
Point Paragraph Com.
Cap./
Annex
Point Paragraph
OBSERVATIONS
3.9.2. “A” 5369 I According to Com. “A” 5580 and 5821.
1st and 2nd “A” 5369 I
3rd “A” 5369 I According to Com. “A” 5580, 5671, 5740 and 5821.
3.9.3.
4th to 6th “A” 5821 2.
3.9.4. “A” 5369 I
3.9.5. “A” 5369 I According to Com. “A” 5580.
3.10. “A” 5821 2.
3.10.1. “A” 5821 2.
3.10.2. “A” 5821 2.
3.10.3. “A” 5821 2.
3.
3.10.4. “A” 5821 2.
4.1. “A” 5369 I
4.1.1. “A” 5369 I
4.1.2. “A” 5369 I
4.1.3. “A” 5369 I
4.1.4. “A” 5369 I
4.2. “A” 5369 I
4.2.1. “A” 5369 I According to Com. “A” 5580.
4.2.2. “A” 5369 I According to Com. “A” 5580 and 5831.
4.2.3. “A” 5369 I According to Com. “A” 6024 and 6221.
4.2.4. “A” 5369 I According to Com. “A” 6004.
4.2.5. “A” 5369 I According to Com. “A” 6004.
4.2.6. “A” 6004 4.
4.2.7. “A” 5369 I According to Com. “A” 6004.
4.2.8. “A” 5369 I
4.3. “A” 5369 I
4.3.1. “A” 5369 I According to Com. “A” 5831.
4.3.2. “A” 5369 I
4.4. “A” 5369 I
4.4.1. “A” 5369 I
4.4.2. “A” 5369 I According to Com. “A” 6004 and 6006.
4.5. “A” 5369 I According to Com. “A” 6004.
4.6. “A” 5369 I According to Com. “A” 5580. Includes interpretive clarification.
4.7. “A” 5369 I
4.7.1. “A” 5369 I According to Com. “A” 5580 and 6221. Includes
interpretive clarification.
4.7.2. “A” 5369 I
4.8. “A” 5369 I
4.9. “A” 5369 I According to Com. “A” 6004.
4.9.1. “A” 5369 I
4.9.2. “A” 5369 I
4.10. “A” 5369 I
4.10.1. “A” 5369 I
4.
4.10.2. “A” 5369 I

5.1. Categories.
The portfolio shall be grouped into two basic categories:
5.1.1. Commercial portfolio.
It covers all financing included, except the following:
5.1.1.1. Consumer or housing loans.
Loans of this class that exceed the equivalent of 40% of the reference amount established in point 3.7. and whose repayment is not linked to fixed or periodic income of the client but to the evolution of their productive or commercial activity shall be included within the commercial portfolio.
5.1.1.2. At the option of the entity, commercial financing of up to the equivalent of 40% of the reference amount established in point 3.7., whether or not they have preferred guarantees, may be grouped together with consumer or housing loans, in which case they shall receive the treatment provided for the latter.
When the client maintains financing for both concepts, consumer or housing loans shall be added to those of the commercial portfolio to determine their classification in one or the other portfolio based on the indicated amount, for which purpose loans with preferred guarantees shall be weighted at 50%. If exercised, this option must be applied generally to the entire portfolio and be provided for in the “Classification and Provisioning Procedures Manual” and may only be changed with 6 months' prior notice to the Superintendency of Financial and Exchange Institutions.
5.1.2. Consumer or housing portfolio.
It comprises:
5.1.2.1. Consumer loans (personal and family, for professionals, for the acquisition of consumer goods, credit card financing).
5.1.2.2. Loans for own housing (purchase, construction or renovation).
5.1.2.3. Loans to Microcredit Institutions –up to the equivalent of 40% of the reference amount established in point 3.7.– and to microentrepreneurs (as provided in point 1.1.3.4. of the rules on “Credit management”).
5.1.2.4. Commercial financing of up to the equivalent of 40% of the reference amount established in point 3.7., whether or not they have preferred guarantees, when the entity has opted for it.
DEBTOR CLASSIFICATION
B.C.R.A.
Section 5. Portfolio categories.
Version: 8th. COMMUNICATION “A” 6221
Effective:
18/4/2017

DEBTOR CLASSIFICATION
ORDERED TEXT ORIGINATING RULE
Sect. Point Parr. Com. Annex Point Parr.
OBSERVATIONS
“A” 2216 I I. 1st
“A” 2216 I I. 2nd
5.1.1.1.
“A” 2216 I II. 4th
According to Com. “A” 2410, 4310 (point 1.),
4975, 5311, 5637 and 5998.
1st “A” 2216 I 6. last According to Com. “A” 2358, 4310 (point 1.), 4975, 5311, 5637 and 5998.
2nd “A” 2216 I I. 1st According to Com. “A” 2410.
5.1.1.2. last “A” 2216 I 6. last According to Com. “A” 2358.
5.1.2.1. “A” 2216 I 6. 1st
5.1.2.2. “A” 2216 I 6. 1st
5.1.2.3. “A” 4891 6. According to Com. “A” 4975, 5637, 5998 and 6221.
5.1.2.4. “A” 2216 I II. 3rd According to Com. “A” 2358, 4310 (point 1.),
4975, 5311, 5637 and 5998.
6.1. “A” 2216 I I. last
1st “A” 2216 I I.a. 1st
2nd “A” 3918 According to Com. “A” 3987.
3rd “A” 4453 According to Com. “A” 4577 and 5398.
4th “A” 5398
6.2.
5th Incorporates criterion not previously disclosed on a general basis.
6.3. “A” 2216 I I.a. 2nd
6.3.1. “A” 2216 I I.a. 2nd, i) According to Com. “A” 2223 (point 1.) and 3339.
6.3.2. “A” 2216 I I.a. 2nd, ii) According to Com. “A” 2223 (point 1.), 3339,
4972 (point 10.), 5311 and 5998.
6.3.3. “A” 2216 I I.a. 2nd, iii)
6.4. 1st “A” 2216 I I.b. 1st According to Com. “A” 3339.
6.4.1. “A” 2216 I I.b. 1st, i) According to Com. “A” 3339.
6.4.2. “A” 2216 I I.b. 1st, ii) According to Com. “A” 3339.
6.4.3. "A" 2893 4.
6.4.4. “A” 3339 only
6.4. last “A” 2216 I I.b. last According to Com. “A” 2223 (point 1.), 3339,
4972 (point 10.), 5311 and 5998.
1st “A” 2216 I I.d. 1st According to Com. “A” 2440.
2nd “A” 4060 10.
3rd “A” 2216 I I.d. last According to Com. “A” 3339 and 4972 (point 10.).
6.5. last “A” 2216 I I.d. last Includes interpretive clarification.
6.5.1. “A” 2216 I I.d.1. According to Com. “A” 2932 (point 16.), 3339 and
5671.
6.5.1.1. “A” 2216 I I.d.1.a) According to Com. “A” 3955.
6.5.1.2. “A” 2216 I I.d.1.b) According to Com. “A” 3339.
6.5.1.3. “A” 2216 I I.d.1.c)
6.5.1.4. “A” 2216 I I.d.1.d) According to Com. “A” 2932 (point 5.).
6.5.1.5. “A” 2216 I I.d.1.e)
6.5.1.6. “A” 2216 I I.d.1.f) According to Com. “A” 3339.
6.5.2. “A” 2216 I I.d.2. According to Com. “A” 3339.
“A” 2216 I I.d.2. 1st, 2nd and 3rd
According to Com. “A” 3339. i) “A” 2216 I I.d.2.a) According to Com. “A” 3339 and 3955. ii) “A” 2216 I.d.2.b) According to Com. “A” 3339.
6.
6.5.2.1. iii) “A” 2216 I I.d.2.c) According to Com. “A” 3339.

The policy that each entity adopts to define the credit margins it assigns to each client must be approved by its Board of Directors or equivalent authority. iii) In the case of correspondents, the file must contain the information and other elements of judgment that allow knowing their identification, rating, credit margins and any other data linked to that relationship, in accordance with the provisions of the rules on “Correspondent Accounts”. iv) In the case of loans to natural persons with a first-degree mortgage guarantee on a home or with a first-degree pledge guarantee on 0 km automobiles or light utility vehicles for private, commercial or rental use, the credit, legal and administration folders shall be attached to the debtor's file when the guidelines provided in the respective origination and administration manuals are observed. v) When the financial institution has contracted a life insurance on the outstanding balance for its clients who are users of financial services, the file must contain the identification of the policy contracted for that purpose.
1.1.3.3. Special operations.
a) Of reduced amount.
It shall only be required that the file contain the data that allow the identification of the client, in accordance with the rules on “Identification documents in force”. i) Borrowers. Natural persons not linked to the financial institution, to the extent that they have not received financing under the terms provided in point 1.1.3.4., paragraph a). ii) Individual limit. The capital owed may at no time exceed the amount equivalent to 8 (eight) times the Minimum, Vital and Mobile Wage established by the National Council for Employment, Productivity and the Minimum, Vital and Mobile Wage for monthly workers who work the full legal working day per client, under the French or German amortization system. iii) Global portfolio limit. 20% of the computable equity of the entity for the month prior to the corresponding one. Said limit shall be computable for the purposes of calculating the global limit provided in point 1.1.3.4., paragraph a), subparagraph iii), in the case that the entity has also granted financing under that modality (loans for microentrepreneurs). iv) Maximum periodicity of the instalment. CREDIT MANAGEMENT B.C.R.A.
Section 1. Requirements for granting financing.
Version: 14th. COMMUNICATION “A” 6221
Effective:
18/4/2017

i) Covered borrowers.

• Natural persons not linked to the financial institution.
• Micro, small and medium-sized enterprises (MSMEs), in accordance with the definition provided in the rules on “Determination of the condition of micro, small or medium-sized enterprise”.
  ii) Individual limit.
• For natural persons the estimated instalment/income ratio must not exceed 50%.
  For the purposes of verifying the maximum ratio provided above, the instalments of all financing of the financial institution that have periodic amortization must be taken into account, without considering the instalments of loans from other entities. Consequently, the margins agreed for current account overdrafts and the purchase limits of credit cards –in both cases, both the used and the available–, as well as pre-agreed personal loans –to the extent that they have not yet been formalized or disbursed to the client–, shall not form part of the numerator of the estimated instalment/income ratio because they do not have periodic amortization. However, those instalments that the client has for financed purchases under the credit card system must be considered within the concept of “instalments”. The income and instalments to be considered shall be those of the debtor and/or, where applicable, of the co-debtors.
• For financing to MSMEs, the capital owed may at no time exceed in its entirety the equivalent of 15% of the reference amount established in point 1.11.
  iii) Global limit for financing to MSMEs.
  20% of the computable equity of the entity for the month prior to the corresponding one. iv) Classification of the client and information to the Debtor Central of the Financial System. It shall be carried out on the basis of the objective guidelines as established in Section 7. of the rules on “Debtor classification”. v) The client's file must record the evaluation carried out in accordance with this procedure and, in the case of natural persons, the estimated income of the debtor and/or, where applicable, of the co-debtors. CREDIT MANAGEMENT B.C.R.A.
  Section 1. Requirements for granting financing.
  Version: 13th. COMMUNICATION “A” 6221
  Effective:
  18/4/2017

Likewise, it may contain other elements that the financial institution, at its discretion, deems necessary for credit evaluation, without this constituting a necessary condition for its application. Financial institutions must prepare a detailed description of the procedure adopted for client evaluation and the assignment of differentiated credit margins, if applicable, according to the type of credit. vi) This procedure must have the prior opinion of:
− The highest-ranking officer of the credit or commercial area responsible for deciding on credit matters.
− The General Manager or equivalent authority.
− The Credit Committee, unless it does not exist in the functional structure of the entity.
Likewise, approval of the aforementioned procedure by the Board of Directors, Board of Administration or equivalent authority of the financial institution shall be required. vii) In cases where the evaluation of repayment capacity is carried out directly on the basis of supporting documentation of the borrower's income or the provisions of the fourth paragraph of point 1.1.3.1. apply, even when the methods indicated in this section are used in a complementary manner, the provisions regarding the content of the file established in point 1.1.3.1. must be observed.
1.1.3.4. Loans for microentrepreneurs and financing to Microcredit Institutions.
a) Loans for microentrepreneurs.
These are understood as loans destined to low-income natural persons to meet needs linked to productive, commercial and service activities, training for microentrepreneurs and financing destined to the improvement of the single and family housing, in which specific methodologies are used for the prior evaluation, granting and monitoring of financial assistance in accordance with the provisions of subsection v) of this point. Complementarily and to the extent that they have available financing margin within this credit class, microentrepreneurs may be granted credits for the acquisition of goods or services for consumption. i) Borrowers. Natural persons or associative groups of natural persons who carry out activities on their own account, not linked to the financial institution. CREDIT MANAGEMENT B.C.R.A.
Section 1. Requirements for the granting of financing.
Version: 12a. COMMUNICATION “A” 6221
Effective date:
4/18/2017

Borrowers who have received financial assistance under this modality may not access the reduced-amount financing referred to in point 1.1.3.3., subsection a). ii) Individual limit. The capital owed at no time may exceed the amount equivalent to 50 (fifty) times the Minimum, Vital and Mobile Wage established by the National Council for Employment, Productivity and the Minimum, Vital and Mobile Wage for monthly workers who work the full legal workday per client. In the event that the client already has a credit granted according to the provisions of point 1.1.3.3., subsection a), the residual capital owed for both types of financing may not exceed the aforementioned limit. iii) Global limit for financing. 30% of the entity's computable equity for the month prior to the corresponding month. 5% of the entity's computable equity for the month prior to the corresponding month, with respect to the total financing in which the periodicity of any of the installments is greater than 90 days or has grace periods greater than that term. The total financing granted under the modalities established in points 1.1.3.3., subsection a) – without exceeding the specific limit of 20% – and 1.1.3.4., subsection a), may not exceed the aforementioned 30% limit. iv) Installment periodicity. Depending on the economic cycles corresponding to the activity carried out by the client. v) Origination of credits and evaluation and monitoring criteria. The granting of financing may be made directly to the credit applicant or through the management of legal entities that meet the characteristics provided in subsection b) of this point. For the prior evaluation, granting and monitoring of financial assistance under this modality, credit methodologies must be used that provide, among other techniques, the following:

• observation of quantitative and qualitative aspects in order to determine the repayment capacity of clients,
• credit evaluation, monitoring and/or collection carried out "in-situ",
• granting of group credits,
• granting of sequential credits (agreement of a first small short-term credit, which once paid, may be granted for larger amounts and terms and/or lower interest rates, based on compliance with the obligations assumed).
  CREDIT MANAGEMENT
  B.C.R.A.
  Section 1. Requirements for the granting of financing.
  Version: 12a. COMMUNICATION “A” 6221
  Effective date:
  4/18/2017

CONSOLIDATED TEXT SOURCE RULE
Sec. Point Para. Com. Annex Chap. Sec. Point Para.
OBSERVATIONS
1.1.1. “A” 3051
1.1.2. “A” 2729 3. 3.4.1. S/Com. “A” 2950, 4972 (point 2.), 5093 and 5520.
1st “A” 49 I. 3.1. S/Com. “A” 5387.
2nd “A” 5482
3rd “A” 5387 S/Com. “A” 5728.
4th “A” 2729 3. 3.4.2. 2nd S/Com. “A” 2950.
5th “A” 2729 3. 3.4.2. 8th S/Com. “A” 2950 and 3051.
6th “A” 4972 2.
1.1.3.1.
7th “A” 3051 i) “A” 2729 3. 3.4.2. 3rd S/Com. “A” 2950 and 3051. ii) “A” 2729 3. 3.4.2. 4th and 5th S/Com. “A” 2950 and 5093. iii) “A” 2729 3. 3.4.2. 7th S/Com. “A” 2950. iv) “A” 2729 3. 3.4.3. S/Com. “A” 2950. 1.1.3.2. v) “A” 5482 S/Com. “A” 6091. a) “A” 3142 1. S/Com. “A” 3182, 4325 (point 3.), 4556, 4559, 4891, 4972, 5557, 5995 and 6221. 1.1.3.3. b) “A” 4325 3. S/Com. “A” 4559, 4572, 4637, 4891, 4972, 5557, 5637, 5998 and 6221. a) “A” 4891 2. S/Com. “A” 5226, 5533, 5884 and 6221. 1.1.3.4. b) “A” 4891 2. S/Com. “A” 5700.
1.1.4. “A” 2729 3. 3.4.4. S/Com. “A” 2950.
1.1.5. “A” 2729 3. 3.4.5. S/Com. “A” 2950 and 6068.
1.2.1. “A” 3051
1.2.1.1. “B” 5464
1.2.1.2. “B” 5464
1.2.2. “B” 5464 Last S/Com. “A” 6167.
1.2.3. “B” 5664 S/Com. “A” 3051.
1.2.4. “C” 18820 S/Com. “B” 8833 and 9063.
1.2.5. “C” 18820 S/Com. “B” 9063.
1.3. “A” 2860 1. 1.1.1. S/Com. “A” 3051.
1st “A” 2573 1. 1st S/Com. “A” 3051.
2nd “A” 2573 1. 5th
1.4.1.
3rd “A” 2573 1. 6th
1.4.2. “A” 2573 1. 2nd S/Com. “A” 3051, 4522, 5557 and 5998.
1.4.3. 1st “A” 2573 1. 3rd S/Com. “A” 3051.
2nd “A” 2573 1. 4th
1.4.4. “A” 2573 1. 7th
1st “A” 2573 1. 8th
2nd “A” 3051
3rd “A” 4972 2.
1.
1.4.5.
4th “A” 4972 2.
B.C.R.A.
ORIGIN OF THE PROVISIONS CONTAINED IN THE RULES ON “CREDIT MANAGEMENT”

2.1. Concepts included.
The maximum limits established in the matter are applicable to the concepts that are covered by the rules on “Fractioning of credit risk”.
2.2. Exclusions.
2.2.1. Concepts excluded from the rules on “Fractioning of credit risk”.
2.2.2. Credit assistance destined to the execution of investment projects.
This exclusion exclusively comprises typical investment projects, in which the entities, in view of their magnitude and specialty, must carry out studies on their technical viability, without necessarily the equity responsibility of the applicants constituting a determining factor for the granting of credit for that purpose.
2.2.3. Mortgage loans for own and permanent housing to end users, which have been granted observing a sufficient margin of guarantee against an adequate appraisal of the mortgaged assets and weighing the repayment capacity from the regular income of the borrowers, so that the initial affectation does not exceed 30% of the debtor's and/or, where applicable, co-debtors' income.
2.2.4. Personal and family loans granted based on the possibilities of payment of services by users derived from their regular income, when those installments do not exceed, at the time of the agreements, 30% of the debtor's and/or, where applicable, co-debtors' income.
2.2.5. Seasonal credits, provided that, added to the assistance granted for other concepts, they do not exceed on average per year the maximum limits set and are destined to meet extraordinary cyclical needs, whose duration is not greater than one year.
CREDIT GRADING B.C.R.A.
Section 2. Financing covered.
Version: 3a. COMMUNICATION “A” 6221
Effective date:
4/18/2017

CONSOLIDATED TEXT SOURCE RULE
Section Point Paragraph Com. Annex Point Paragraph
OBSERVATIONS
1.1. 1st “A” 467 unique 2. According to Com. “A” 5520.
“A” 467 unique 6.1. last
1.
1.1. 2nd “A” 3002 Incorporates interpretive clarification.
2.1. “A” 467 unique 2. According to Com. “A” 5520.
2.2.1. “A” 467 unique 4.1. According to Com. “A” 5520.
2.2.2. 1st “A” 467 unique 3.1.
2.2.2. last “A” 490 unique 2.
2.2.3. “A” 467 unique 3.2. According to Com. “A” 6221.
2.2.4. “A” 467 unique 3.3. According to Com. “A” 6221.
2.2.5. “A” 467 unique 4.2.
2.2.6. 1st “A” 467 unique 4.3.
last “A” 490 unique 4. and 5.
2.2.7. “A” 467 unique 4.4.
2.2.8. “A” 467 unique 4.5. According to Com. “A” 2054 and 5419.
2.2.8.1. viii “A” 467 unique 4.5.8. According to Com. “A” 2074.
2.2.9. “A” 467 unique 4.6. According to Com. “A” 2054.
2.2.10. “A” 467 unique 4.7. According to Com. “A” 2098, “B” 5477, “A” 4310 (point 3.), 4975, 5311, 5637 and 5998.
2.2.11. “A” 467 unique 4.8.
“A” 2410 7.
According to Com. “A” 2410, 3307, 4093 (penultimate paragraph), 4465 and 5275.
2.2.12. “B” 5902 10. last According to Com. “A” 5013.
2.2.13. “B” 5902 10. last According to Com. “A” 5013, 5154 and 5368.
2.2.14. “B” 5902 10. last According to Com. “A” 5013.
2.2.15. “A” 3314 According to Com. “A” 5671 and 5740.
2.2.16. “A” 4891 5. According to Com. “A” 5998.
2.
2.3. “A” 5998 1.
3.1.1. “A” 467 unique 1. 1st According to Com. “A” 2373.
3.1.2.1. “A” 467 unique 1. 2nd According to Com. “A” 2373 and 5949.
1st to 6th “A” 467 unique 1. 2nd According to Com. “A” 2373 and “B” 5902. Includes interpretive clarification.
7th “B” 5902 10. 1st
3.1.2.2. last “A” 3002 Incorporates interpretive clarification.
3.2.1. “A” 467 unique 1. 3rd According to Com. “A” 2373, modified by Com. “A” 2960. Incorporates interpretive criterion.
3.2.2. “A” 2206 2. According to Com. “A” 3183.
3.2.2.1. “A” 2206 2. According to Com. “A” 3086 and 3183.
3.2.2.2. “A” 2056 1. According to Com. “A” 3086 and 4093 (penultimate paragraph).
3.2.2.3. “A” 2384 1. 1st and 2nd According to Com. “A” 3086 and 4093 (penultimate paragraph).
3.2.2. last “A” 3086 1.
3.
3.3. “A” 2156 5.
B.C.R.A.
ORIGIN OF THE PROVISIONS CONTAINED IN THE RULES ON “CREDIT GRADING”