Minimum Cash: Deposits and Time Investments - Adjustments

2018 - YEAR OF THE CENTENARY OF THE UNIVERSITY REFORM

COMMUNICATION “A” 6575
28/09/2018

TO FINANCIAL INSTITUTIONS:

Ref.: Circular
CIRMO 3 - 91
OPASI 2 - 549
REMON 1 - 955

Minimum cash. Deposits and time investments. Adjustments.

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We address you to inform you that this Institution adopted the resolution that, in its pertinent part, provides:

“1. Increase, for the financial institutions included in the list disseminated through Communication “A” 6570, by 3 percentage points the minimum cash requirement rates provided by points 1.3.1., 1.3.2.1., 1.3.3.1., 1.3.4.1. and 1.3.5., subparagraphs i) and ii) of point 1.3.7.1., subparagraphs i) and ii) of subsection a) of point 1.3.9. and points 1.3.11.1. and 1.3.13. of the rules on “Minimum cash”.

That increase in the requirement –for the period and daily– may be integrated with BCRA Liquidity Bills (LELIQ) and/or BCRA Notes (NOBAC), valued at market prices, that are deposited in Subaccount 60 minimum cash enabled in the “Central de Registro y Liquidación de Pasivos Públicos y Fideicomisos Financieros – CRyL”.

2. Establish that financial institutions may integrate with BCRA Liquidity Bills (LE-LIQ) and/or BCRA Notes (NOBAC), valued at market prices, that are deposited in Subaccount 60 minimum cash enabled in the “Central de Registro y Liquidación de Pasivos Públicos y Fideicomisos Financieros – CRyL”, the minimum cash requirement –for the period and daily– corresponding to the increase in the balances recorded in the items referred to in point 1.3.7.1., subsection a) of point 1.3.9. and points 1.3.11.1. and 1.3.14. of the rules on “Minimum cash”, with respect to those of 30.9.18.

3. Replace the first paragraph of point 2.3. of the rules on “Minimum cash” with the following:

“On no day of the month may the sum of the balances of the concepts admitted as integration, recorded at the close of each day, be less than 25 % of the total minimum cash requirement, determined for the immediately preceding month, recalculated based on the requirements and concepts in force in the month to which the reserves correspond, without considering the effects of the application of the provisions of point 1.7.1.”

4. Replace point 1.11.6. of the rules on “Deposits and time investments” with the following:

“1.11.6. Payment.

The entity must offer the depositor the option of payment:

1.11.6.1. At maturity.

1.11.6.2. Periodic payment of accrued interest, before the maturity of the deposit to the extent that it is made in arrears, with a frequency not less than 30 days.

1.11.6.3. Incentives or remuneration in advance in goods or services shall be admitted –point 1.11.4 –.”

5. Provide that financial institutions may subscribe BCRA 30-day Cash Compensation Notes, which will accrue 1/5 of the reference rate determined by the BCRA, with holdings of banknotes susceptible of being considered “good use”, but that are not affected to the “Interbank Banknote Compensation” (CIB) in own vaults as well as in securities carriers, provided that they comply with the requirements regarding conditioning and hoarding provided in the rules for the declaration of banknote surpluses (CIB).

6. Establish that these measures will be in force as of 1.10.18.”

Likewise, we inform you that we will subsequently send you the pages that, replacing those previously provided, should be incorporated into the reference rules.

We greet you attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Matías A. Gutiérrez Girault
Manager of Issuance of Rules

Agustín Torcassi
Deputy General Manager of Rules