Regulatory Alerts1996-12-17
Added
Notice No. 8/96 of the Bank of Portugal
This notice amends Notice No. 12/92 by adding Article 19th-A, which permits specific institutions to include short-term subordinated loans and net trading profits in their own funds to meet capital requirements and cover trading book risks. It establishes strict conditions for these instruments, including a minimum two-year repayment term, prohibitions on repayment if it reduces own funds below 100% of requirements, and a cap limiting such loans to 200% of available basic own funds. Institutions must report any repayments that cause their own funds to fall below 120% of global requirements.
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