On Mar. 14, ARG CB published financial firms' minimum capital rules.
ARG CB published Circular LISOL 1-1045, Communication A 7979in the official gazette
References clarification of minimum capital requirements of financial institutions.
Requirements Clarifications
ARG CB clarified calculation of required capital pertaining to counterparty credit risk.
In accordance with the regulations governing minimum capitals of financial entities.
Financial entities may deem certain entities as a qualified central counterparty (QCCP).
Specifically entities that are central counterparty entities (CCPs) and have external audit report on compliance with IOSCO and CMPI principles and recommendations.
Additionally entities provide the information necessary for the calculation of the capital requirement for counterparty credit risk due to exposure on the financial entities.
Exposure of guarantee funds that are established to deal with non-compliance.
ARG CB distributed relevant updated regulatory text as attachment to Com A 7979.
Effectiveness
Communication A 7979 enters into force on Mar. 13, 2024.
May 2024 ARG CB Adjustments
On May 23, 2024, ARG CB issued Circular LISOL 1-1054, Communication A 8028.
ARG CB updated minimum capital requirements, effective as of Jun. 1, 2024.
As of Jun. 1, 2024, the basic minimum capital requirement per 1.1. and 1.2. of the capital regulations is 500 million pesos for banks and 2500 million for other entities.
Established that entities in operation by Jun. 1, 2024, must observe basic capital requirement in table 1, in accordance with corresponding category, as of Jan. 1, 2025.
From Jun. 1 to Dec. 31, 2024, operating entities will apply requirements in table 2.
170 million pesos for banks and 700mn pesos for other entities, except credit unions.
May 27, 2024 ARG CB Official Publication
On May 27, 2024, ARG CB published Communication A 8028 in the official gazette.
Jul. 18, 2024 ARG CB Minimum Capital
On Jul. 18, 2024, ARG CB issued Circular LISOL 1-1066, Communication A 8066 to replace Section 5 Minimum capital of financial entities, effective as of Oct. 1, 2024.
Circular LISOL 1-1067, Communication A 8067 replaced Section 2 Minimum capital for credit risk re financial entities with rating changes will come into force on Jan. 1, 2025.
From Jan. 1, 2025 and until Dec. 31, 2025, financial entities in group 2 must convert commitments that are liable to be canceled at discretion and by the financial entity.
Or that are automatically canceled in the event of deterioration in debtor's solvency.
Additionally, Circular LISOL 1-1068, Communication A 8068replaced Section 7 of the Minimum capital of the financial entities that will come into force on Mar. 1, 2025.
Jul. 22, 2024 ARB CB Official Publication
On Jul. 22, 2024, ARG CV published Communications A 8066, 8067, and 8068 in the official gazette to announce amendments to the minimum capital regulations.
Aug. 2024 ARG CB Adjustments
On Aug. 26, 2024, ARG CB issued Circular CONAU 1-1644, Communication A 8096.
References modifications to market discipline, minimum disclosure regulations.
Communication A 8096 informs with regards to amendments incorporated into the aforementioned regulations on as a result of the issuance of Communication A 8066.
Including for Section 8 on Credit risk, Table CRC, Qualitative disclosure requirements re credit risk hedging techniques, and Form CR3 on Credit risk hedging techniques.
Additionally, formal adjustments were made by ARG CB to the Form CC1 on Composition of regulatory capital, Section 4 on Capital composition and TLAC.
Communication A 8096 will be effective for information as of Dec. 31, 2024.
Regulators
ARG CB
Entity Types
Auditor; Bank
Reference
Cir CONAU 1-1644, Com A 8096, 8/26/2024; OG, 7/22/2024; Cir LISOL 1-1068, Com A 8068, Cir LISOL 1-1067, Com A 8067, Cir LISOL 1-1066, Com A 8066, 7/18/2024; OG, 5/27/2024; Cir LISOL 1-1054, Com A 8028, 5/23/2024; OG, 3/14/2024; Cir LISOL 1-1045, Com A 7979, 3/12/2024;
