11 Jun Argentine Monthly Accounting Reporting Regime – Requirement and Integration of Minimum Capitals

June 11, 2020 – The BCRA, through Communication “A” 7041, incorporated in Section 3 Credit Risk Requirement and in Section 8 Total Control, the following item:

• Code 15000000: Additional requirement for financing clients with agricultural activity that are not MSMEs and have a collection ratio of more than 5% of their annual harvest.

For the computation of the additional requirement established in point 11.5. of the rules on “Minimum capitals of financial institutions”, the following methodology shall be applied:

1. The balance of financing and other exposures shall be recorded in the corresponding codes, provided in this section, recording the relevant weights and CCFs, in such a way to determine the general requirement;
2. Code 15000000 shall record the additional capital charge resulting from the difference between what is registered as indicated in section a) and that resulting from applying factor 4 to said amount.

This communication is accompanied by the sheets that correspond to replace in the ordered text of the present informative regime.

Jurisdictions affected: Argentina

For more information, visit Banco Central de la República Argentina.