RegAlertRule · BCRA · 26 Feb 2007 · A 4631
Rules for Custodian and Registration Agent Functions, Minimum Capital of Financial Entities, Computable Patrimonial Liability of Exchange Houses and Agencies, and Guarantees to be Established – Modifications
Effective 1 March 2007, the circular replaces several provisions in the rules governing custodian and registration‑agent functions and the minimum‑capital regulations for financial entities, introducing a 0.25 % excess computable patrimonial liability that must be invested in Argentine public securities or BCRA debt instruments and pledged as guarantee to the Central Bank, with the investment calculated on month‑end balances and deposited in a special account at Caja de Valores S.A. within 72 business hours and reported to the BCRA Credit Management unit. It also revises the list of assets included in market‑risk capital, mandates that capital contributions be made only in cash or in the aforementioned securities, and permits contributions via accounts in local financial institutions or foreign banks rated A or higher, subject to specific conditions.
2007 – Year of Road Safety
CENTRAL BANK OF THE ARGENTINE REPUBLIC
COMMUNICATION “A” 4631 26/02/2007
TO FINANCIAL ENTITIES:
Ref.: Circular
LISOL 1 – 466
RUNOR 1 – 815
Rules for the performance of custodian and registration‑agent functions. Minimum capital of financial entities. Computable patrimonial liability of exchange houses and agencies and guarantees to be established. Modifications.
We address you to inform that this Institution has adopted the following resolution:
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Replace, effective from 1 March 2007, point 3.1.2 of Section 3 of the "Rules for the performance of custodian and registration‑agent functions" (text according to Communication “A” 2923) with the following:
3.1.2. Increase of minimum‑capital requirement.
3.1.2.1. Excess of computable patrimonial liability.
Equivalent to 0.25 % of the amount of securities in custody, which must be kept invested in national public securities or debt instruments of the Central Bank of the Argentine Republic or other destinations authorized by the Central Bank, provided they are regularly quoted on the exchanges and markets where they are traded, and pledged as guarantee in favor of this Institution to cover possible defaults.
3.1.2.2. Deposit account.
The admitted securities or other debt instruments that are pledged as guarantee must be deposited in a special account opened for that purpose at Caja de Valores S.A., in the name of the entity and at the order of the Central Bank of the Argentine Republic.
3.1.2.3. Determination and compliance of the required investment.
The amount to be invested in securities or other admitted debt instruments shall be determined on the basis of the balances at the end of each month and the deposit must be made in the aforementioned account within the next 72 business hours, informing the Credit Management of the B.C.R.A. within the same term by means of a sworn statement using the model contained in point 3.5.
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Substitute, effective from 1 March 2007, point 1.2.1 of Section 1 of the rules on "Minimum capital of financial entities" with the following:
1.2.1. Custody function of the securities representing the investments of pension and retirement funds.
Commercial banks must register an excess of computable patrimonial liability with respect to the minimum‑capital requirement equivalent to 0.25 % of the amount of securities in custody, which must be kept invested in national public securities or debt instruments of the Central Bank of the Argentine Republic or other destinations authorized by the Central Bank, provided they are regularly quoted on the exchanges and markets where they are traded, and pledged as guarantee in favor of this Institution to cover possible defaults.
The admitted securities or other debt instruments that are pledged as guarantee must be deposited in a special account opened for that purpose at Caja de Valores S.A., in the name of the entity and at the order of the Central Bank of the Argentine Republic.
The amount to be invested in securities or other admitted debt instruments shall be determined on the basis of the balances at the end of each month and the deposit must be made in the aforementioned account within the next 72 business hours, informing the Credit Management of the B.C.R.A. within the same term by means of a sworn statement.
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Replace, effective from 1 March 2007, in Section 6 of the rules on "Minimum capital of financial entities" the following point:
6.2.1.1. Positions included.
i) National public securities, except those registered in investment accounts. Instruments of debt of the Central Bank of the Argentine Republic will also be considered.
ii) Units of mutual funds whose object is such securities or the mentioned debt instruments.
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Replace, effective from 1 March 2007, point 7.3 of Section 7 of the rules on "Minimum capital of financial entities" with the following:
7.3. Capital contributions.
For all regulations linked to capital, its composition and increase, including those referring to regularisation and restructuring plans, contributions must be made exclusively in cash and/or with national public securities and/or debt instruments of the Central Bank of the Argentine Republic, in pesos or foreign currency.
When such securities or the mentioned debt instruments are used, the contribution must be made in values that are regularly quoted on the exchanges and markets where they are traded.
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Replace, effective from 1 March 2007, point 1.3.4.2 of Chapter XVI of Circular RUNOR‑1 (text according to Communication “A” 3795), concerning computable patrimonial liability of exchange houses and agencies and guarantees to be constituted, with the following:
1.3.4.2. For all regulations linked to capital, its composition and increase, contributions may be made:
i) By crediting them to accounts opened in local financial entities (authorized to receive funds from AFJPs) or foreign banks that, in the latter case, have an international risk rating of "A" or higher, granted by any of the rating agencies admitted by the rules on "Evaluation of financial entities".
ii) In national public securities and/or debt instruments of the Central Bank of the Argentine Republic, both with normal and regular quotation, in the country or abroad, widely disseminated and easily accessible to the public, in market‑price transactions, for which a single type must be chosen.
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Replace, effective from 1 March 2007, point 1.5.2.1 of Chapter XVI of Circular RUNOR‑1 (text according to Communication “A” 3795), concerning computable patrimonial liability of exchange houses and agencies and guarantees to be constituted, with the following:
1.5.2.1. National public securities and/or debt instruments of the Central Bank of the Argentine Republic, both with normal and regular quotation, in the country or abroad, widely disseminated and easily accessible to the public, in market‑price transactions, for which a single type must be chosen.
For this purpose a pledge in favor of the Central Bank of the Argentine Republic shall be constituted over the cited values deposited at Caja de Valores S.A., according to the procedure enabled for that purpose.
We enclose the pages that, in replacement of those previously provided, must replace the ordered text of the rules on "Performance of custodian and registration‑agent functions" and "Minimum capital of financial entities". Also, we remind you that on the Institution’s website www.bcra.gov.ar, accessing "normativa" ("ordered texts"), you will find the modifications with texts highlighted in special characters (strikethrough and bold).
We greet you very attentively.
CENTRAL BANK OF THE ARGENTINE REPUBLIC
Darío C. Stefanelli – Juan C. Isi
Manager of Norms Emission
Chief Manager of Emission and Normative Consultations
ANNEX
PERFORMANCE OF CUSTODIAN AND REGISTRATION‑AGENT FUNCTIONS – B.C.R.A.
Section 3. Requirements.
3.1.1.3. Computation.
The determination of the requirement and verification of its compliance shall be carried out on the basis of the balances at the end of each month.
3.1.2. Increase of minimum‑capital requirement.
3.1.2.1. Excess of computable patrimonial liability.
Equivalent to 0.25 % of the amount of securities in custody, which must be kept invested in national public securities or debt instruments of the Central Bank of the Argentine Republic or other destinations authorized by the Central Bank, provided they are regularly quoted on the exchanges and markets where they are traded, and pledged as guarantee in favor of this Institution to cover possible defaults.
3.1.2.2. Deposit account.
The admitted securities or other debt instruments that are pledged as guarantee must be deposited in a special account opened for that purpose at Caja de Valores S.A., in the name of the entity and at the order of the Central Bank of the Argentine Republic.
3.1.2.3. Determination and compliance of the required investment.
The amount to be invested in securities or other admitted debt instruments shall be determined on the basis of the balances at the end of each month and the deposit must be made in the aforementioned account within the next 72 business hours, informing the Credit Management of the B.C.R.A. within the same term by means of a sworn statement using the model contained in point 3.5.
Version: 2a. COMMUNICATION “A” 4631
Effective date: 01/03/2007
ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE RULES FOR THE PERFORMANCE OF CUSTODIAN AND REGISTRATION‑AGENT FUNCTIONS
| Section | Point | Paragraph | Communication | Observation |
|---|---|---|---|---|
| 1. | “A” 2923 | 1.1. “A” 2237 1° | 1. | |
| 1. | “A” 2834 | 1.2. “A” 2923 | 2.1. “A” 2923 | |
| 2. | “A” 2237 last | According to Comm. “A” 2923 and 3236. | 2.2. “A” 2237 last | |
| 2. | “A” 2923 | 2.3. “A” 2923 | ||
| 2. | “A” 2237 last | |||
| 3. | “A” 2237 a) | 3.1.1. “A” 2237 a) | ||
| 3. | “A” 2237 a) 1° | According to Comm. “A” 2834. | ||
| 3. | “A” 2237 a) 2° | |||
| 3. | “A” 2237 a) 3° | |||
| 3. | “A” 2237 a) 4° | |||
| 3. | “A” 2237 b) 1° | According to Comm. “A” 4631. | ||
| 3. | “A” 2237 b) 2° | According to Comm. “A” 4631. | ||
| 3. | “A” 2237 b) 3° | According to Comm. “A” 4631. | ||
| 3. | “A” 2237 c) | According to Comm. “A” 2923. | ||
| 3. | “A” 2237 d) | |||
| 3. | “A” 2237 e) | |||
| 3. | “A” 2237 f) | |||
| 3. | “A” 2237 g) | |||
| 3. | “A” 2237 h) | |||
| 3. | “A” 2237 i) | |||
| 3. | “A” 2237 j) | |||
| 3. | “A” 2237 k) | |||
| 3. | “A” 2237 penultimate | |||
| 3. | “A” 2834 1 | |||
| 3. | “A” 2834 1 | With interpretative clarification. | ||
| 3. | “A” 2834 1 | With interpretative clarification. | ||
| 3. | “A” 2923 | |||
| 3. | “A” 2923 | |||
| 3. | “A” 2923 | |||
| 3. | “A” 2923 | |||
| 3. | “A” 2923 | |||
| 3. | “A” 2923 | |||
| 3. | “A” 2923 | |||
| 3. | “B” 5719 | According to Comm. “A” 2923. |
MINIMUM CAPITAL OF FINANCIAL ENTITIES – B.C.R.A.
Section 1. Minimum capital.
1.1. Requirement.
The minimum‑capital requirement that financial entities must have integrated by the last day of each month shall be equivalent to the greater value resulting from the comparison between the basic requirement and the sum of those determined by credit‑risk and interest‑rate risk.
1.2. Increase of requirement due to custody and/or registration‑agent function.
1.2.1. Custody function of the securities representing the investments of pension and retirement funds.
Commercial banks must register an excess of computable patrimonial liability with respect to the minimum‑capital requirement equivalent to 0.25 % of the amount of securities in custody, which must be kept invested in national public securities or debt instruments of the Central Bank of the Argentine Republic or other destinations authorized by the Central Bank, provided they are regularly quoted on the exchanges and markets where they are traded, and pledged as guarantee in favor of this Institution to cover possible defaults.
The admitted securities or other debt instruments that are pledged as guarantee must be deposited in a special account opened for that purpose at Caja de Valores S.A., in the name of the entity and at the order of the Central Bank of the Argentine Republic.
The amount to be invested in securities or other admitted debt instruments shall be determined on the basis of the balances at the end of each month and the deposit must be made in the cited account within the next 72 business hours, informing the Credit Management of the B.C.R.A. in the same term with the character of a sworn declaration.
1.2.2. Registration‑agent function of mortgage letters.
Commercial banks must observe the rules contained in point 1.2.1, with the reservation that the excess of 0.25 % shall be calculated on the amount of the registered mortgage letters, considered at the net value of the amortizations actually performed.
1.2.3. Performance of both functions.
The determination of the increase of the minimum‑capital requirement shall be carried out by applying the fixed percentage over the sum of the amounts corresponding to the securities in custody and the registered mortgage letters, considered at the net value of the amortizations actually performed.
1.3. Integration.
For the purpose of determining compliance with the minimum‑capital requirement, the integration to be considered shall be the computable patrimonial liability.
Version: 4a. COMMUNICATION “A” 4631
Effective date: 01/03/2007
Section 6. Minimum capital for market risk.
6.1. Requirement.
It shall be the sum of the risk‑values of the asset‑portfolio components:
```
VaRp = VaRAN‑B + VaRAN‑A + VaRAE‑B + VaRAE‑A + VaRME ```
Where:
- VaRp: risk value of the total portfolio.
- VaRAN‑B: risk value of the portfolio of national assets – bonds.
- VaRAN‑A: risk value of the portfolio of national assets – equities.
- VaRAE‑B: risk value of the portfolio of foreign assets – bonds.
- VaRAE‑A: risk value of the portfolio of foreign assets – equities.
- VaRME: risk value of the positions in foreign currency.
6.2. Risk value of the portfolio of national assets.
6.2.1. Bonds.
6.2.1.1. Positions included.
i) National public securities, except those registered in investment accounts. Instruments of debt of the Central Bank of the Argentine Republic will also be considered.
ii) Units of mutual funds whose object is such securities or the mentioned debt instruments.
6.2.1.2. Calculation of risk value.
i) The bought and sold positions in the considered assets will be grouped into four zones according to their average life ("modified duration": md):
a) Bonds issued in pesos, with md ≤ 2.5.
b) Bonds issued in pesos, with md > 2.5.
c) Bonds issued in foreign currency, with md ≤ 2.5.
d) Bonds issued in foreign currency, with md > 2.5.
Version: 7a. COMMUNICATION “A” 4631
Effective date: 01/03/2007
Section 7. Computable patrimonial liability.
ii) Transitory acquisition of participations in companies to facilitate their development, with the purpose of later selling the holdings, granting financing and advisory services in planning and management.
The computation shall be net of provisions for devaluation risk.
7.2.4.16. Shares or participations in the capital of companies received as payment for credits, whose holding exceeds the maximum periods established for their liquidation in points 9.1.1 and 9.1.2 of Section 9 of the rules on "Credit Grading".
This deduction shall be made for the amount that exceeds the maximum admissible holding limit.
7.3. Capital contributions.
For all regulations linked to capital, its composition and increase, including those referring to regularisation and restructuring plans, contributions must be made exclusively in cash and/or with national public securities and/or debt instruments of the Central Bank of the Argentine Republic, in pesos or foreign currency.
When such securities or the mentioned debt instruments are used, the contribution must be made in values that are regularly quoted on the exchanges and markets where they are traded.
Version: 4a. COMMUNICATION “A” 4631
Effective date: 01/03/2007
ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE RULES ON MINIMUM CAPITAL OF FINANCIAL ENTITIES
| Section | Point | Paragraph | Communication | Cap./Annex | Point | Paragraph | Observations |
|---|---|---|---|---|---|---|---|
| 1.1. | “A” 2136 | 1. | Modified by Comm. “A” 2859 and “A” 3558. | ||||
| 1.2.1. | “A” 2237 b) | Modified by Comm. “A” 2923 (point 3.1.2.3 of Section 3.) and 4631. | |||||
| 1.2.2. | “A” 2923 | 3. | 3.2.2. | ||||
| 1.2.3. | “A” 2923 | 3. | 3.3. | ||||
| 1.3. | “A” 2136 | 2. | 1st according to Comm. “A” 2223. | ||||
| 1.4.1. | “A” 2136 | 3.1. | |||||
| “A” 3171 | According to Comm. “A” 3959. | ||||||
| i) | “A” 2136 | 3.2. 2nd according to Comm. “A” 3959. | |||||
| ii) | “A” 2136 | 3.2.4. Modified by Comm. “A” 2241. | |||||
| 1.4.2.1. | “A” 414 LISOL‑1 VI 6.1. | ||||||
| 1.4.2.2. | “A” 3171 | According to Comm. “A” 3959. | |||||
| 2.1. | “A” 2241 CREFI‑2 I 1.3.1. According to Comm. “A” 4368. | ||||||
| 2.2. | “A” 2650 | 2. According to Comm. “A” 3128, “A” 4238 and “A” 4368. | |||||
| 2.3.1. | “A” 2237 a) | Modified by Comm. “A” 2923 (point 3.1.1.2 of Section 3.). | |||||
| 2.3.2. | “A” 2923 | 3. | 3.2.1. | ||||
| 2.3.3. | “A” 2923 | 3. | 3.3. | ||||
| 3.1. | “A” 2136 | 1. Modified by Comm. “A” 2541, 2736, 2938, 3039, 3307, 3959 and 4598. Incorporates interpretative clarifications. | |||||
| 3.2. | “A” 2136 I | According to Comm. “A” 2541, annex, criteria, d), 2nd paragraph and according to Comm. “A” 3040. | |||||
| 3.3.1. | “A” 2136 I | According to Comm. “A” 2541, annex, criteria, d), 2nd paragraph. | |||||
| 3.3.2. | “A” 2287 | 5. | |||||
| 3.3.3. | “A” 2412 | In the second paragraph of point 3.3.3.3. incorporates a criterion not previously disclosed generally. According to Comm. “A” 3959. | |||||
| 3.4.1. | “A” 2768 | 2. Modified by Comm. “A” 2948, “A” 3911, “A” 3925, “A” 3959 and “A” 4180. | |||||
| 3.4.2. | “A” 2227 | unique 5.2.2. 3rd | |||||
| 3.5.1. | “A” 2136 | 1.1. | |||||
| 5.6. | “A” 2922 I | Modified by Comm. “B” 6523 and “A” 4172. Point 5.6.4.5. modified by Comm. “A” 3274, “A” 3959, “A” 4180, “A” 4543 and “A” 4615. | |||||
| 6.1. & 6.2. | “A” 2461 | unique I. and II. According to Comm. “A” 4172 and 4631. | |||||
| 6.3. & 6.4. | “A” 2461 | unique I. and II. According to Comm. “A” 3959 and 4172. | |||||
| 6.5. | “A” 2461 | unique I. and II. Modified by Comm. “A” 2736, 2768, 2948, 3959 and 4172. Point 6.5.2. includes interpretative clarification. | |||||
| 6.6. | “A” 2461 | unique III. According to Comm. “A” 3161 and 4172. | |||||
| 6.7. | “A” 2461 | unique VI. According to Comm. “A” 4172. | |||||
| 6.8. | “A” 2461 | unique VII. According to Comm. “A” 4172. | |||||
| 7.1. | “A” 414 LISOL‑1 VI 3.1. | 1st according to Comm. “A” 2279 (modified by Comm. “A” 2453, 2793, 2914, 3039 and 4172). | |||||
| 7.2.1. | “A” 414 LISOL‑1 VI 3.1.1. | According to Comm. “A” 2223 (modified by Comm. “A” 2227 and 4296, point 2.). | |||||
| 7.2.2. | “A” 414 LISOL‑1 VI 3.1.2. | According to Comm. “A” 2223. Modified by Comm. “A” 2768, 2948 and 4172. | |||||
| 7.2.3. | 1st “A” 414 LISOL‑1 VI 3.1.2.2. | According to Comm. “A” 2264 and 4172. Incorporates interpretative clarification. | |||||
| 7.2.3.1. a | |||||||
| 7.2.3.4. | “A” 414 LISOL‑1 VI 3.1.2.2. | According to Comm. “A” 2264 and 4172. In the second paragraph of point 7.2.3.3. incorporates interpretative clarification. | |||||
| 7.2.3.5. | “A” 2264 | 2. According to Comm. “A” 4172. | |||||
| 7.2.3.6. | “A” 414 LISOL‑1 VI 3.1.2.2. | According to Comm. “A” 2264 and 4172. | |||||
| 7.2.4.1. | “A” 2287 | 3.1. and 3.3. According to Comm. “A” 2890 and 4172. | |||||
| “A” 2287 | last according to Comm. “A” 4172. | ||||||
| 7.2.4.2. | 1st “A” 2497 | 1. According to Comm. “A” 3621 and 4172. | |||||
| last “A” 2263 | 2. According to Comm. “A” 4172. | ||||||
| 7.2.4.3. | “A” 2287 | 3.2. According to Comm. “A” 4172. | |||||
| 7.2.4.4. | “A” 2264 | 1. According to Comm. “A” 4172. | |||||
| 7.2.4.5. | “A” 414 LISOL‑1 VI 3.2. | According to Comm. “A” 4172 and 4539. | |||||
| 7.2.4.6. | “A” 1215 | Specifications of the items of participations in financial entities not deductible for determining computable patrimonial liability. According to Comm. “A” 4172. | |||||
| 7.2.4.7. | “A” 414 LISOL‑1 VI 3.2. | According to Comm. “A” 4172 and 4539. | |||||
| 7.2.4.8. | “A” 2863 | 3. According to Comm. “A” 4172. | |||||
| 7.2.4.9. | “A” 414 LISOL‑1 VI 3.2. | According to Comm. “A” 4172. | |||||
| 7.2.4.10. | “A” 2730 | Incorporates interpretative clarification. According to Comm. “A” 4172. | |||||
| 7.2.4.11. | “A” 2545 | According to Comm. “A” 4172. | |||||
| 7.2.4.12. | “A” 414 LISOL‑1 VI 3.2. | Modified by Comm. “A” 986 and “A” 4172. | |||||
| 7.2.4.13. | “A” 414 LISOL‑1 VI 3.2. | According to Comm. “A” 4172. | |||||
| 7.2.4.14. | “A” 2287 | 4. According to Comm. “A” 4172. | |||||
| 7.2.4.15. | “A” 2607 | 1. According to Comm. “A” 4172. | |||||
| 7.2.4.16. | “A” 2893 | 1. According to Comm. “A” 4172. | |||||
| 7.2.4.17. | “A” 3087 | According to Comm. “A” 4172. | |||||
| 7.2.4.18. | “A” 3918 | According to Comm. “A” 4172. | |||||
| 7.3. | “A” 414 LISOL‑1 VI 3.4. | According to Comm. “A” 1858, 4172 and 4631. | |||||
| 8.1. | “A” 2227 | unique 5.2.1. last according to Comm. “A” 2649 and 4172. | |||||
| 8.2. | 1st “A” 2227 | unique 5.1.1. and 5.1.7. According to Comm. “A” 2649 and 4172. | |||||
| “A” 2227 | unique 5.2.2. According to Comm. “A” 4172. | ||||||
| 8.2. | last “A” 2461 | unique V. According to Comm. “A” 4172. | |||||
| 9.1. | “A” 3959 | According to Comm. “A” 4172. | |||||
| 9.2. | “A” 3959 | According to Comm. “A” 4172. | |||||
| 9.3. | “A” 3985 | According to Comm. “A” 4172. | |||||
| 9.4. | “A” 3985 | According to Comm. “A” 4172. | |||||
| 9.5. | “A” 3986 | 2. and 4. According to Comm. “A” 4172 and 4270. | |||||
| 9.6. | “A” 3986 | 3. and 4. According to Comm. “A” 4172. | |||||
| 9.7. | “A” 4238 | 2. According to Comm. “A” 4368. |
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