Notice No. 4/2001 of the Bank of Portugal

Notices from the Bank of Portugal Notice No. 4/2001

The Bank of Portugal, using the competence conferred upon it by Article 96(1) of the General Regime of Credit Institutions and Financial Companies, determines the following:

Notice No. 12/92, published in the Diário da República, 2nd series, of December 29, 1992, is subject to the following modifications:

1. Article 9-A is added, with the following wording: "9-A. The amount corresponding to titles resulting from 'securitization' operations, held by entities other than the originators of the underlying assets, shall also be deducted at their acquisition value, when those titles, due to their characteristics, concentrate the credit risk of the said assets."

2. Article 5 shall have the following wording: "5. - 1 - The amount corresponding to the sum of the elements indicated in items 1) to 7) of Article 3, minus the sum of the elements indicated in items 1) and 3) to 8) of Article 4, constitutes the core own funds. 2 - The amount corresponding to the sum of the elements indicated in items 8) to 13) of Article 3, minus the sum of the elements indicated in item 2) of Article 4, constitutes the supplementary own funds."

3. Article 8 shall have the following wording: "8. Without prejudice to the provisions of Articles 6 and 7, the own funds of institutions are constituted by the sum of the core own funds and the supplementary own funds, minus the amounts referred to in Articles 9 and 9-A."

Lisbon, March 19, 2001. - The Governor, Vítor Constâncio.