ANNUAL REPORT 2007 LIST
ACTIVE MEMBERS
ABN AMRO Bank N.V. American Express Bank Ltd. S.A. Banco Bradesco Argentina S.A. Banco Cetelem Argentina S.A. Banco do Brasil S.A. Banco Itaú Buen Ayre S.A. Banco Santander Río S.A. BBVA Banco Francés S.A. BNP Paribas Citibank N.A. Deutsche Bank S.A. GE Compañía Financiera S.A. HSBC Bank Argentina S.A. JP Morgan Chase Bank, National Association (Buenos Aires Branch) Standard Bank Argentina S.A. The Bank of Tokyo-Mitsubishi Ufj, Ltd.
ANNUAL REPORT 2007 LIST
ASSOCIATED MEMBERS
Banco de la Nación Argentina Banco de Chile Banco Latinoamericano de Exportaciones Banco Santander Central Hispano S.A. Bank LEU AG Bank of America N.A. Bayerische Hypo-Und Vereinsbank AG BSI Banca Della Svizzera Italiana Calyon Argentina S.A. Commerzbank AG Coöperatieve Centrale Raiffeisen-Boerenleebank B.A. (Rabobank) Credit Suisse Lloyds TSB Bank PLC Sanpaolo IMI S.p.A. Société Générale Société Anonyme Standard Chartered Bank The Bank of New York The Bank of Nova Scotia Unión Bancaire Privee CBI-TDB Wachovia Bank, N.A.
ANNUAL REPORT 2007 LIST
BOARD OF DIRECTORS
President
Mario Vicens
1st Vicepresident
BANCO SANTANDER RÍO S.A. Enrique Cristofani
2nd Vicepresident
CITIBANK N.A. Juan J. Bruchou
3rd Vicepresident
BBVA BANCO FRANCÉS S.A. Jorge Bledel
4th Vicepresident
HSBC BANK ARGENTINA S.A. Antonio Losada
Secretary
DEUTSCHE BANK S.A. Luis Caputo
Pro Secretary
JP MORGAN CHASE BANK, National Association (Buenos Aires Branch) Facundo D. Gómez Minujín
Treasurer
BANCO ITAÚ BUEN AYRE S.A. Rodolfo Corvi
Pro Treasurer
BNP PARIBAS Christian Giraudon
Members
STANDARD BANK ARGENTINA S.A. Eduardo Spangenberg AMERICAN EXPRESS BANK Ltd. S.A. José María Zas
Alternate Members
BANCO DO BRASIL S.A. Alexandre Ronald De Almeida Cardoso ABN AMRO BANK N.V. José Oscar Fernández THE BANK OF TOKYO-MITSUBISHI UFJ, Ltd. Takashi Fukushima
ANNUAL REPORT 2007 LIST
BANCO CETELEM ARGENTINA S.A. Patrick Décla Honorary President
Julio J. Gómez
ACCOUNTS AUDITORS
Titular
BANCO BRADESCO ARGENTINA S.A. Arnaldo Silva
Alternate Member
GE COMPAÑÍA FINANCIERA S.A. Luís Fernández López
ANNUAL REPORT 2007 LIST
SPECIAL COMMITTEES
FINANCIAL AFFAIRS AND CAPITAL MARKET Coordinating Secretary Gabriel Martino - HSBC Bank Argentina S.A. LEGAL AFFAIRS Coordinating Secretary Analía Schnaidman - HSBC Bank Argentina S.A. Alternate Coordinating Secretaries Pablo Antao - Banco Itaú Buen Ayre S.A. Fabián Montiel - BBVA Banco Francés S.A. BANK AUDITING Coordinating Secretaries José Luis Estella de Noriega - Banco Santander Río S.A. Diego Gagliano - Standard Bank Argentina S.A. Eduardo José Zerega - BBVA Banco Francés S.A.
RETAIL BANKING Coordinating Secretary Pío Rueda - Banco Santander Río S.A. Alternate Coordinating Secretary Fabián Turturro - Standard Bank Argentina S.A. INSURANCE BANKING Coordinating Secretary Pablo Borakievich - BBVA Banco Francés S.A. Alternate Coordinating Secretary Gastón Bunge - Standard Bank Argentina S.A. BASILEA II Coordinating Secretaries To be appointed
ANNUAL REPORT 2007 LIST
TRUST Coordinating Secretary Atilio Serenelli - HSBC Bank Argentina S.A. Alternate Coordinating Secretaries Hernán Carassai - HSBC Bank Argentina S.A. Eduardo Rodríguez Sapey - Banco Santander Río S.A.
TAXATION Coordinating Secretary Luis Irigoyen - BBVA Banco Francés S.A. Alternate Coordinating Secretaries Fernando Alesón - Citibank N.A. Claudio Di Lello - HSBC Bank Argentina S.A.
ACCOUNTING AND REPORTING STANDARDS Coordinating Secretaries Juan José Pardo - HSBC Bank Argentina S.A. Ana María Zorgno - Banco Itaú Buen Ayre S.A. Alternate Coordinating Secretary Jorge Achával - Banco Santander Río S.A. TRANSACTIONS Coordinating Secretary Pedro Telwak - Banco Santander Río S.A. Alternate Coordinating Secretaries Alicia Echarri - Citibank NA.1 Javier Michelesi - BBVA Banco Francés S.A. FOREIGN TRADE TRANSACTIONS Coordinating Secretary Luis Martínez - HSBC Bank Argentina S.A. Alternate Coordinating Secretaries Hermine Espiñeira - Deutsche Bank S.A. Miguel Angel Zarlenga - ABN AMRO Bank N.V. SECURITIES TRANSACTIONS Coordinating Secretary María Rosa Eiras - Standard Bank Argentina S.A. 1
Until November 2007
ANNUAL REPORT 2007 LIST
PREVENTION OF BANK CRIME AND FRAUD Coordinating Secretary Raúl Ernesto Fiori - Banco Santander Río S.A. Alternate Coordinating Secretaries Roberto Fernández Latorre - Standard Bank Argentina S.A. Roberto J. Veltri - Citibank N.A. PREVENTION OF MONEY LAUNDERING Coordinating Secretary Rubén J. Silvarredonda - HSBC Bank Argentina S.A. Alternate Coordinating Secretary Graciela F. Rosich - Standard Bank Argentina S.A. SMALL AND MEDIUM-SIZED COMPANIES Coordinating Secretary Hernán Caballero - Banco Santander Río S.A. LABOR RELATIONS Coordinating Secretary Daniel Agudo - BBVA Banco Francés S.A. RELATIONS AND COMMUNICATIONS Coordinating Secretary Oscar Correa - Banco Santander Río S.A. Alternate Coordinating Secretary Angélica Ocampo - HSBC Bank Argentina S.A. CREDIT RISK Coordinating Secretary Silvia Tobin - HSBC Bank Argentina S.A.2 Alternate Coordinating Secretaries Darío Mangano - HSBC Bank Argentina S.A. Jorge Bertoni - BBVA Banco Francés S.A. BANK SECURITY Coordinating Secretary Daniel Alí - Banco Itaú Buen Ayre S.A. Alternate Coordinating Secretary Jorge D. Sande - BBVA Banco Francés S.A. 2
Until 07.03.07
ANNUAL REPORT 2007 LIST
TECHNOLOGY, ORGANIZATION AND SYSTEMS Coordinating Secretary Enrique Rubinstein - Standard Bank Argentina S.A.
ANNUAL REPORT 2007 LIST
INSTITUTIONAL REPRESENTATIVES
NATIONAL CUSTOMS ADMINISTRATION Customs Consulting Board Luis Martínez - HSBC Bank Argentina S.A. (Incumbent) Salvador Ilaria - Deutsche Bank S.A. (Alternate) ARGENTINE SOYA ASSOCIATION (ACSOJA) Pablo Bullrich - Banco Santander Río S.A. ARGENTINE BANK MARKETING ASSOCIATION (AMBA) Mario Vicens - ABA President (Member) CENTRAL BANK OF THE ARGENTINE REPUBLIC Interbank Commission for Means of Payment in the Argentine Republic Directors: Pedro Telwak - Banco Santander Río S.A. Javier Aníbal Michelesi - BBVA Banco Francés S.A. Technical Committee: Incumbent Members Alternate Members Commercial Committee: Incumbent Member Alternate Members Legal Committee: Incumbent Members
Pedro Telwak - Banco Santander Río S.A. Javier Aníbal Michelesi - BBVA Banco Francés S.A. Alicia Echarri - Citibank N.A.1 Juan Carlos Aguilera - Standard Bank Argentina S. A. Edgardo Bonifacini - BBVA Banco Francés S.A. Julia Langwagen - Standard Bank Argentina S.A. Jorge Barnfather - Citibank N.A.2 Analía Schnaidman - HSBC Bank Argentina S.A. Eduardo Ayerra - Standard Bank Argentina S.A.
Fixed-Term Deposits Subcommittee: Incumbent Member Alicia Echarri - Citibank N.A.3 Alternate Member Daniel Víctor Martínez - Banco Santander Río S.A.
1
Until November 2007 Until October 2007 3 Until November 2007 2
ANNUAL REPORT 2007 LIST
Transactional Electronic Means of Payment Subcommittee: Incumbent Member Renato Otmarich - Banco Santander Río S.A. Alternate Member Carlos Daniel Bestilleiro - BBVA Banco Francés S.A. Direct Debit Subcommittee: Incumbent Member Julia Langwagen - Standard Bank Argentina S.A. Alternate Member Christian Ruiz - Banco Santander Río S.A. Transfer Subcommittee: Incumbent Member Alternate Member
Flavio Jesús Boncore - Standard Bank Argentina S.A. Christian Ruiz - Banco Santander Río S.A.
Treasurers Subcommittee: Incumbent Members Julián Bianchi - Banco Santander Río S.A. Rubén Osvaldo Pécora - Citibank NA. Alternate Members Carlos D’Elío - BBVA Banco Francés S.A. Alejandro Casola - Banco Itaú Buen Ayre S.A. BUENOS AIRES STOCK EXCHANGE Board Mario Vicens - ABA President SELF-REGULATORY BOARD - BANK PRACTICES CODE María Elena Deligiannis - ABA Technical Manager (Incumbent) Rubén Mattone - ABA Communications and Institutional Relations Manager (Alternate) FELABAN Alternate Governor: Mario Vicens - ABA President EXPORT.AR FOUNDATION Mario Vicens - ABA President (Member) Small and Medium-Sized Companies Board Incumbent Members Arnaldo Prieto - BBVA Banco Francés S.A. Marcelo Santoro - Banco Santander Río S.A. Alternate Member Andrea Rupp - ABA Committee's Coordinator ARGENTINE FEDERAL POLICE FOUNDATION Board of Directors Mario Vicens - ABA President (Member)
ANNUAL REPORT 2007 LIST
OTC MARKET 2nd Vicepresident Treasurer Director Incumbent Directors
Alternate Directors
Luis Downs - Banco de la Nación Argentina Gabriel Martino - HSBC Bank Argentina S.A. Esteban Benegas Lynch - JP Morgan Chase Bank N.A. (Buenos Aires Branch) Alberto Estrada - BBVA Banco Francés S.A. Fernando Negri - Standard Bank Argentina S.A. Luis Castresana - Banco Itaú Buen Ayre S.A. Jorge Lonegro - Citibank N.A.
MERCOSUR Group of Mercosur Bank Associations María Elena Deligiannis - ABA Technical Manager Link to Mercosur Work Subgroup Number 4 "Financial Affairs" Financial System Commission María Elena Deligiannis - ABA Technical Manager Money Laundering and Terrorism Financing Prevention Commission Rubén Silvarredonda - HSBC Bank Argentina S.A. MINISTRY OF LABOR, EMPLOYMENT, AND SOCIAL SECURITY Banking Collective Bargaining Agreement Negotiating Commission Incumbent Members Daniel Agudo - BBVA Banco Francés S.A. Sergio Scattolini - Standard Bank Argentina S.A. María Elena Deligiannis - ABA Technical Manager Julián Arturo de Diego - Employment Advisor Alternate Members Alejandro Ortiz Quintero - HSBC Bank Argentina S.A. Diego Sánchez - Citibank N.A. Bank Social Security Follow-Up Commission Horacio Buceta - Advisor Carlos Dupont - Advisor MINISTRY OF THE INTERIOR - BANK SAFETY PERMANENT COMMISSION Daniel Alí - Banco Itaú Buen Ayre S.A. (Incumbent) Roberto Veltri - Citibank N.A. (Alternate) NETWORK OF YOUNG COMPANIES WITH PROMISING FUTURE Mario Vicens - ABA President (Incumbent) Rubén Mattone - ABA Communications and Institutional Relations Manager (Alternate)
ANNUAL REPORT 2007 LIST
FINANCIAL INFORMATION UNIT Technical Commission for Amendment of Resolution Number 2 RubĂŠn Silvarredonda - HSBC Bank Argentina S.A. Natalia Miranda - ABA Committee's Coordinator ARGENTINE UNION OF SERVICE ENTITIES - UDES Mario Vicens - ABA President (1st Vicepresident)
ANNUAL REPORT 2007 LIST
AREAS AND PERSONS IN CHARGE
BOARD President Mario Vicens TECHNICAL MANAGEMENT Manager María Elena Deligiannis Committee's Coordination Natalia Miranda Andrea Rupp INSTITUTIONAL RELATIONS AND COMMUNICATIONS MANAGEMENT Manager Rubén Mattone ADMINISTRATIVE MANAGEMENT Manager José Luis Prado ECONOMIST Damián Wilson CONSULTANTS Labour Consultancy: Estudio de Diego & Asociados Legal Consultancy: Estudio Bruchou, Fernández Madero & Lombardi Tax Consultancy: Price Waterhouse & Co.
ANNUAL REPORT 2007
President’s Letter
The year 2007 reported two different periods for the financial system: one, the first half of the year during which the normalization of the banking activity continued basically driven by the expansion of private sector credit; and the second one, since July, when the international financial crisis and the domestic electoral process put to test the strength of this normalization process. During the first semester, the evolution of this sector did not show significant changes compared to 2006. Private sector credit was still growing – for the fourth year in a row – at a 40% annual rate, financing both consumption as production and commerce. Lines of credit related to production such as leasing and exports financing registered an increase of approximately 60% and share the rank of growth together with consumer and pledge loans. Meanwhile, the growing of financing to Small and Medium-Sized Companies and regional economic activities, the extension of the maturity of the bank lending to companies1 and the remarkable increase of housing mortgage loans were growing around 40% annually, shaped a gradually recovering scenario, although sustained and generalized, of the banking credit market that let consider it as a continuous process that will end in the reestablishment of this source of financing. This perspective was reinforced by last months’ experience. The international financial crisis was an stress test for both the Central Bank and the financial institutions and is being successfully overcame. The management driven by the monetary authority of the liquidity surplus and the exchange market since last August and the excellent levels of liquidity and soundness of the financial system had led to absorb the initial impact of the crisis and avoided to affect the public confidence in the stability of the system. The crisis let prove with this facts that the financial institutions have reestablished its soundness and financial strength. This conditions were the ones that allowed the growth of private sector credit even though there was a temporary stop in deposits growth. The economy revitalization, amendments to Central Bank’s regulations to the financial system and streamline of fiscal situation are some of the factors that made this process easier. Besides, its important to mention that this improvement in financial-economic conditions would not have been possible without a carefully management of credit risk, a determined reduction of mismatches that still exist as an aftertaste of the crisis, the systematic capitalization of profits, the contribution of new funds from shareholders and a very responsible administration of financial institutions’ liquidity. 1
Report on Banks, Central Bank, Year V, Number 3, November 2007, page 4 and 5.
ANNUAL REPORT 2007
The crisis was also useful to demonstrate that the core of banking activity is the credit. From August to November 2007, while there were some concerns about the continuous growth of deposits and the future level of interest rates, banking credit to private sector continued growing at a higher rate than in the previous months. The normalization of the activity has been also shown in other aspects, such as in the employment rate. The banks created 6,200 new jobs during the last twelve months, reaching a staffing of around 100,000 employees whose average salaries are ranked third or fourth among every economic sector, as it is informed by ANSES. Besides, it is the economic sector that pays the highest salaries among those with more employees, formally and high quality jobs. As expected, this normalization and consolidation process of the activity produced an increase in banking infrastructure investment. Last year, the expansion of branches and ATMs network, internet services, etc. was emphasized, and let regain lost ground on infrastructure and services as a consequence of the crisis. As a summary, the year 2007 was very important to the sector because, in a sense, finish a cycle that has begun in the 2001/02 crisis. An important part of its impact on the financial system has been left behind. However, it should be admitted that there are still many issues to improve. Argentina is not bad positioned in terms of infrastructure in an international comparison, but it is straggled in three related levels: the small size of banking credit to the private sector, the reduced share in savings of financial system and the scarcity of long term financial resources essential to finance generalized investment growth. None of these problems are new; they have been settled in our country since long time. However, the credit growth from the 7.6% of GDP, the minimum registered during the crisis, up to the current 11.1% justifies the expectation of a significant growth of credit to finance production and investment and in the better conditions of them. Nevertheless, one of the obstacles to achieve international standards is the chronic scarcity of institutionalized financial savings in our country. This phenomenon has many causes, some structural and other depending on current circumstances. One of the most important is the lack of financial education. To overcome this limit is strategic for the financial system. This is the reason why education has an outstanding role in the institutional agenda of ABA, both in specifically financial and banking topics and in basic education of the youth.
Mario Vicens President
ANNUAL REPORT 2007
Index Pág. Chapter 1: Evolution of Argentine Economy .............................................................. 1 Introduction..............................................................................................................................................1 The Macroeconomic Context ...............................................................................................................2 Balance of Payments ...............................................................................................................................3 Foreign Commerce..................................................................................................................................3 Employment .............................................................................................................................................4 Public Finance ..........................................................................................................................................4 Public Debt ...............................................................................................................................................5 Chapter 2: Monetary Evolution and Amendments to Central Bank’s Regulations ... 6 Monetary Evolution ................................................................................................................................6 2008 Monetary Program.........................................................................................................................6 Monetary Base Evolution.......................................................................................................................7 Central Bank’s Reserves..........................................................................................................................8 Deposits and Loans.................................................................................................................................8 Interest Rates ......................................................................................................................................... 11 Main Regulatory Changes...............................................................................................................13 Central Bank’s Repos and Swaps Transactions..................................................................... 13 Changes to Access the Exchange Market............................................................................... 13 Book Value of Government and Central Banks’ Bonds..................................................... 14 Changes to Minimum Reserve Requirements ....................................................................... 14 Change of Small and Medium-Sized Companies Definition.............................................. 14 Issuance of Internal LEBAC and NOBAC........................................................................... 15 Prudential Treatment of Financial Derivatives...................................................................... 15 New System of Cooperative Credit Institutions ................................................................... 16 The Central Bank Authorized the Extension of the Banking Services Offer in Banks 16 Authorization to Set Up 57 New Branches ........................................................................... 16 Total Financial Cost Publication .............................................................................................. 17 Chapter 3: Financial System.......................................................................................18 Introduction........................................................................................................................................... 18 Profitability, Efficiency and Intermediation Margins..................................................................... 19 Portfolio Quality ................................................................................................................................... 20 Exposure to the Public Sector............................................................................................................ 21 Interest Rate Structure and Composition ........................................................................................ 22 Capitalization ......................................................................................................................................... 23 Financial System Tax Burden............................................................................................................. 26 Share of Loans and Deposits per Group of Institutions .............................................................. 27 Financing to Small and Medium-Sized Companies ....................................................................... 28 Statistical Appendix: Tables 1 to 48 .......................................................................... 30 Appendix ................................................................................................................... 79 Principal Measures of Banking, Exchange and Financing Policies............................................. 79
ANNUAL REPORT 2007 Chapter I: Evolution of Argentine Economy
Chapter 1: Evolution of Argentine Economy Introduction 2007 was the fifth consecutive year of economic growth within the framework of an economy that continues to evolve within a very favorable international scenario, which is reinforced at the domestic level by the continued surplus showed by both fiscal and foreign accounts. Fixed gross investment registered an increase up to 22.7% of the GDP, while unemployment continued to decrease, reaching a percentage below 10%. At the international level, prices of Argentine export commodities continued to improve in line with the increase also registered by other commodities; such as oil, which reached values of nearly US$ 100 per barrel; assets like gold, which price also registered a strong increase during the year; or currencies as the Euro, which continued to appreciate during the year. During 2007, as far as world growth is concerned, the expectation of a progressive desacceleration of the productive activity driven by United States economic problems, affected by the unbalance in its fiscal and foreign accounts, was gradually installed. Problems became evident toward mid year, when capital and financial markets suffered the impact of the international financial crisis boosted by difficulties in the United States subprime mortgage market, which rapidly affected major world markets. The Federal Reserve reaction, which injected liquidity into the market, contributed to limit the impact of the crisis on credit markets and, thus, on activity levels. As a counterpart, measures contributed to inflation expectations in the US Dollar area, to the increase in the value of commodities, and to the US Dollar depreciation in relation to other currencies. Even though the impact of the international financial crisis was moderate in the case of Argentina, the country could not prevent it from provoking a certain increase in interest rates and, initially, a certain pressure on the value of the Peso. Prices of financial assets retracted, while deposit growth came to standstill and interest rates increased. Notwithstanding this, measures adopted by the Central Bank and the use of liquidity reserve available at banks at this point helped manage to prevent market lack of liquidity derived from the crisis from affecting bank credit growth and, therefore, production and employment growth. In the third quarter, during which period the international financial crisis effects were stronger, the bank credit continued to increase at a rate higher than 40% per year, while production, consumption, tax collection, pension expenses, and salaries continued to improve at the same pace they did before the crisis. In the second half of the year, the Gross Domestic Product registered a 9.0% increase in relation to the same period of the previous year, thus closing another year with a 9% growth and 5 consecutive years of growth above 8% per year. The economy, in turn, showed to be very solid in relation to political changes. In June, Felisa Miceli was replaced in her capacity as Minister of Economy by Miguel Peirano, who until such time was Secretary of Industry, without the markets and the economic in general 1
ANNUAL REPORT 2007 Chapter I: Evolution of Argentine Economy
showing any signs of uncertainty in such respect. The same situation was replicated during the process prior to October 28 presidential elections. Senator Cristina FernĂĄndez de Kirchner won the presidential elections in the first round. Daniel Scioli, who was previously Vice-president, was elected governor of the province of Buenos Aires. In this province, as well as in Cordoba and Mendoza, the Justicialista Party candidates won the election, while in the provinces of Santa Fe and in the City of Buenos Aires candidates of other parties not aligned to the official party at the national level won the election. Anyway, the election results as regards the legislative branch was vary favorable to the national government, as it allowed increasing the number of legislators in their block and to achieve not only an absolute majority, but also the minimum number of representatives required to give quorum without depending on other political forces. The new administration, which took office on December 10, ratified the course of the economic policy followed until such time by former President NĂŠstor Kirchner. MartĂn Lousteau, who until such time was President of the Banco de la Provincia de Buenos Aires, was appointed Minister of Economy. It is worth mentioning that, throughout the year 2007, fiscal income registered a very significant increase. There were several factors that contributed to this increase. First, the increase of the economic activity -both in real and in nominal terms- allowed to broaden the tax basis of taxes related thereto. Second, the improvement in international prices boosted exports tax collection. Third, during this year fiscal administration efficiency continued to improve. Finally, government accounts also increased after the reform of the pension system, launched during the year. Although the mixed pension system in force until such time was maintained (a combination of capitalization and distribution systems), it was allowed to transfer contributions accumulated in capitalization system individual accounts to the government distribution system every five years starting immediately. In turn, savings of holders having less than ten active years of employment left and a maximum of 250 MOPRES (around 20,000 Pesos) saved in their individual capitalization accounts were automatically transferred. Balance transferred to this account was registered as current income for the year 2007. In turn, the Central Bank maintained the policy of limiting the Peso appreciation and reserve accumulation, which reached the highest historical levels ever, and prevented the Peso appreciation in regard to the US Dollar. The Macroeconomic Context According to the latest information available, the GDP for the year 2007 increased approximately 8.7%. Two thirds of the growth is explained by the expansion of service sectors, financial intermediation among them. In the three first quarters of the year, private consumption registered an annualized 7.3% growth, reaching one of the highest historical levels. On the other hand, there was a 14.4% increase in gross fixed investment, reaching 2
ANNUAL REPORT 2007 Chapter I: Evolution of Argentine Economy
22.7% of the GDP, which is double of the percentage observed in the year 2002 during the last crisis. Industrial production measured using INDEC’s Industrial Monthly Estimate (IME) grew 7.5% during the year 2007, slightly below the 8.3% increase recorded in 2006. Values reached during 2007 are 24.7% higher than the value registered in 1998, the maximum value before the crisis. This dynamism in industrial production was reflected in the use of the installed capacity (IC), which continued to grow until reaching a mean of 74.0% during 2007, higher than the 73.7% recorded in the previous year. It is worth mentioning that there is still very much dispersion in the use of the installed capacity, as it arises if we compare the levels reached by installed capacity in the production of motor vehicles and in oil refination, 53.5% and 95.7%, respectively. Balance of Payments The current account surplus during the first nine months of the year decreased to US$ 4.2 billion, which represents a 23% decrease compared to the same period of the previous year. The higher growth of imports reduced the commercial balance, which is the main factor of the lower current account balance. In line with this, the payment balance capital and financial account showed a positive income amounting to US$ 5.8 billion, mainly as a result of private sector capital increase, which amounted to more than US$ 3 billion. On the other hand, a US$ 10.2 billion increase was registered in Central Bank’s international reserves during 2007. Foreign Commerce Argentine exports in 2007 showed a 20.4% increase in relation to 2006, and they reached their historical record: they amounted to US$ 55.9 billion. More than half the increase (11.5%) was the result of the increase recorded in exported goods, while amounts represented 41% of the aggregate amount. Imports increased 31.1%, reaching a total of US$ 44.8 billion. The increase of imported quantities (21.9%) explains most of the imported amount increase, while import prices showed just a 7.6% increase. Thus, there was a 3.6% increase in exchange terms (the relationship between export and import prices) during 2007, while the foreign commerce balance for the entire year reached an amount of US$ 12.2 billion, 9.4% less than the prior year income. Regarding the commerce with the various economic blocks, it is worth mentioning that the region that has the highest transaction volume comprises MERCOSUR member countries, with whom the commercial exchange represented a deficit reaching US$ 3.7 billion. There follow European Union countries, main Asian countries and NAFTA member countries. It is also worth mentioning the exchange with Chile, which registered a commercial surplus representing 31% of the total 2007 balance. 3
ANNUAL REPORT 2007 Chapter I: Evolution of Argentine Economy
Employment The continued economic activity level growth was decisive to maintaining a high employment level. In the fourth year quarter, the employment rate (population having an occupation in relation to total population) remained unchanged and it amounted to 42.1%, the same level observed at the end of the previous year. On the other hand, unemployment was reduced to 7.5%, compared to the rate recorded one year before, 8.7%. It is worth mentioning that unemployment adjusted according to the impact of work plans (all persons employed in Household Male and Female Head Programs are considered unemployed) amounted to 8.1%, two points less than a year before, when a 10.1% rate was recorded. There was also certain reduction in subemployment, which amounted to 9.1%. Twelve months before, the subemployment rate had amounted to 10.8% instead. Considering these figures, the Executive stated that, as of the month of September, the condition set forth in Act 25,972 was complied with. This Act maintained in force the suspension of dismissals without cause set forth in Act 25,561 until the unemployment rate reached a percentage below 10% (Decree 1224/07). In turn, the section that required payment of double compensation in the case of dismissal without cause was not longer effective. According to the INDEC’s index, there was also an increase in salaries. The general level recorded a 22.7% increase between December 2007 and the same month of the previous year. Different from previous years, public sector salaries are the ones that registered the highest increase, 28.4%, followed by non-registered private sector salaries, 24.1%, while salaries corresponding to registered private sector employment showed a 20% increase. Public Finance In the year 2007, national tax collection (excluding non-tax income) reached 24.8% of the GDP, which amounted to 22.9% in the previous year. In nominal terms, total tax resources increased 33.2% during the year, higher than the 25.8% recorded in the previous year. Increase of VAT (33%) and income tax (27.5%) are to be highlighted. Both taxes represent 77% of Argentine IRS income, excluding the social security system. Bank accounts debit and credit tax collection increased 28.9%, representing 7.5% of the total tax collection amount. On the other hand, the national primary expense increased up to 23.8% GDP, which shows a strong increase in real terms in relation to the 20.7% recorded during the previous year. The higher public expense growth caused a 3.5% reduction of the national primary expense, which amounted to 3.2% of the GDP in the year 2007, while the financial income was reduced from 1.8% to 1.1% of the GDP.
4
ANNUAL REPORT 2007 Chapter I: Evolution of Argentine Economy
Public Debt At the end of the third quarter of 2007, the national government public debt amounted to US$ 165 billion, of which US$ 132 billion corresponded to the performing debt, US$ 5 billion to the non-performing debt (mainly to the Paris Club), and US$ 28 billion of debt not presented for exchange. 47% of the performing debt is denominated in Pesos, while 87% of this amount corresponds to the debt adjustable to CER. There follow debts denominated in US Dollars and Euros, which represent a 40% and a 10% share, respectively, while the rest is divided among other currencies. The mean life of the performing debt is 13 years, which results from combining the 17 year mean term for public bonds and Treasury bonds and the 5.8 year term for loans (including secured loans). Therefore, the total public debt amounts to 64.8% of the GDP.
5
ANNUAL REPORT 2007 Chapter II: Monetary Evolution and Amendments to Central Bank’s Regulations
Chapter 2: Monetary Evolution and Amendments to Central Bank’s Regulations Monetary Evolution At the end of December 2007, the Central Bank complied with monetary goals for the 18th consecutive quarter. From the year 2006, monetary goals were set forth based on the evolution of M2 monetary aggregate, which recorded a 17.9% increase in the year. During the first part of the year 2007, it was observed a behavior similar to that seen during the previous year, and the Central Bank continued to apply its reserve accumulation and monetary sterilization policy. However, at the end of July, the United States mortgage market crisis arose, which extended to international financial markets. In Argentina, this crisis provoked an increase in interest rates, to which the Central Bank responded with a series of measures oriented to provide market liquidity. First, the Central Bank unified the minimum reserve requirement corresponding to July and August. Second, in September, it adopted other liquidity injection mechanisms, such as suspension of weekly LEBAC and NOBAC bids if there were no due dates, otherwise it conducted bids for amounts less than those due. It also started to conduct reverse repos bids, initially for an aggregate amount of 1 billion Pesos at a fixed 11% annual rate, to which institutions had access based on their deposit share. At the beginning of October, it increased the available amount to 2 billion Pesos and, in mid October, it increased it to 3 billion Pesos. However, only part of this line of credit was used. Additionally, LEBAC and NOBAC repurchase bids were carried out, together with interventions in LEBAC and NOBAC secondary market and on the spot and future exchange markets. Then, the Central Bank also unified the minimum reserve requirement for October and November, but it did not allow transferring any excess amounts recorded in October to the month of November. 2008 Monetary Program For the year 2008, the Central Bank set forth quantitative goals based on broader monetary aggregates. As it had been doing during the past years, goals with maximum and minimum values were set for the mean of the last month of each semester but, as of this year, the forecasts for the following twelve months shall be announced at the end of each quarter. In the base scenario, an M2 value was set forth, which implies an 18% growth. The 2008 Monetary Program also includes an annual goal with regard to private M2 (that is, cash held by the general public, and private sector current accounts and savings accounts) whose base value implies a desacceleration with regard to 2007.
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ANNUAL REPORT 2007 Chapter II: Monetary Evolution and Amendments to Central Bank’s Regulations
2008 Monetary Program
Balances at the end of the period – In billions of Pesos Year 2008
Goals
March
June
Sept.
Dec.
Lower band
146,283
153,856
157,064
165,142
Base
150,717
159,230
163,220
172,448
Higher band
155,152
164,605
169,376
179,753
Lower band
...
...
...
155,559
Base
...
...
...
161,231
Higher band
...
...
...
166,902
Total M2
Private M2
Monetary Base Evolution During the year 2007, the monetary base registered an expansion of approximately 18.9 billion Pesos, which implies a 23.6% growth, significantly less than the variation recorded during the previous year. The main expansion factor was transactions carried out by the Central Bank to absorb foreign currency offer from the foreign private sector (32 billion Pesos). As it had done during the past years, a part of this expansion was sterilized through the issuance of Central Bank notes (LEBAC and NOBAC). By means of this transaction, almost 5 billion Pesos were absorbed during the year, even though a different behavior was observed during the first semester of the year and also in the second semester, after the application by the Central Bank of measures intended to provide liquidity to the market. On the other hand, financial institutions cancelled rediscounts with the Central Bank thus allowing absorption of approximately 2.9 billion Pesos, while other transactions with the national public sector allowed absorbing almost 5.3 billion Pesos more. Repos stock increase observed during the last four-month period of the year contributed to absorb 1.7 billion Pesos of the monetary base. Monetary Base Expansion Factors In billions of Pesos
Factors Foreign Private Sector Domestic Public Sector Rediscounts Repos Central Bank Bonds Others Total
2005 28,227 -4,991 -9,637 -1,893 -10,031 558
2006 43,006 -5,354 -8,440 5,832 -9,748 61
2007 32,321 -5,305 -2,879 -1,671 -4,977 1,423
2,233
25,356
18,912
7
ANNUAL REPORT 2007 Chapter II: Monetary Evolution and Amendments to Central Bank’s Regulations
The adjusted balance of Central Bank notes (LEBAC and NOBAC) reached 50 billion Pesos, which represents a 25% increase in the year 2007. Following the strategy applied as of 2005, the Central Bank focused mainly on issuance of bonds in Pesos, leaving aside the issuance of bonds adjustable to CER. In turn, it concentrated in variable rate notes (NOBAC), whose yield is related to the BADLAR rate (30 to 35 day fixed term deposits rate amounting to more than one million Pesos or US Dollars) with a 2.5% additional margin in both cases and which, different from LEBAC, accrue interest on a quarterly basis. Although NOBAC adjustable to both BADLAR of financial system and private banks rates were offered the latter were better received by the market. Central Bank’s Reserves In order to continue accumulating reserves, the Central Bank regularly intervened in the foreign exchange market. Although it used approximately 3% of its stock to maintain the exchange rate stable after the volatility produced by the United States mortgage crisis, the net amount of transactions throughout the year showed a positive balance. Transactions made by the private sector allowed the Central Bank to increase its reserve amount in approximately US$ 10.5 billion, while the balance of transactions with international organizations showed a negative cash flow amounting to US$ 1.3 billion. Altogether, the Central Bank increased its holdings in more than US$ 14 billion throughout the year, in such a way that its total reserves were above US$ 46 billion, which constitutes a historical record. According to the latest information published by the Central Bank, a 7.1% yield was obtained in annual terms during the first ten months of 2007, which represented more than US$ 2.3 billion in this period (approximately US$ 2.6 billion during the year). The yield reached 2 percentage points above the yield obtained in the same period of the previous year. 70% of income was obtained from the yield of bonds and term deposits, while the remaining 30% corresponded to the appreciation of gold and Euro in relation to the US Dollar. Deposits and Loans During the year 2007, private sector deposits increased 25.2%, somewhat above the growth recorded in the previous year. The highest increase was observed in savings accounts deposits, which recorded a 30.3% growth during the year, while current account deposits and sight deposits recorded a 18.9% increase and time deposits increased 14.1% with regard to the previous year. Time deposits adjustable to CER were reduced 56.8%. They reached a volume of 1.62 billion Pesos. This type of deposits is made mostly by institutional investors, such as Pension and Retirement Trust Funds. During several months starting in July, private sector deposits ceased growing as a consequence of the impact produced in local financial markets by the international financial 8
ANNUAL REPORT 2007 Chapter II: Monetary Evolution and Amendments to Central Bank’s Regulations
crisis provoked by the United States subprime mortgage market breakdown. The situation had an impact on the composition of deposits and on interest rates as well, which registered a significant increase. At the beginning of the last quarter, the situation started to normalize and the year ended without major setbacks in this regard. The private sector credit continued to grow for the fourth year in a row, at a 40% annual rate. During 2007, it increased 42.7% with regard to the previous year, including all lines of credit, both those intended to finance consumption as well as production. The growth rank is shared by the leasing and export financing, on the one hand, and consumer loans and pledges on the other, all of which have recorded an increase of approximately 60%. Mortgage loans registered a 41.8% growth, which represented an approximate increase of 4.2 billion Pesos. As it is the line of credit that takes longer to recover after a crisis like the one that affected Argentina in 2001/2002, it should be highlighted that this is the second year in a row that it grows net of the amount paid by installments. On the other hand, there are hints that indicate that the use of bank financing has been recently more related to investment, as lines of credit mostly used by companies to finance their working capital, current account advance payments and document discount have had an increase lower than the rest: 32.3% and 28.2%, respectively. Finally, private sector loans in foreign currency increased 41.7%, driven by foreign commerce transactions financing. If we take into account the 2004-2007 period as a whole, the variation of the banking credit to the private sector intended to finance productive and commercial activities represents 52% of the total amount, presenting a higher share of the financing to small and mediumsized companies and to regional economic activities, as well as an extension of the financing term to companies. On the other hand, consumption and credit lines with tangible collateral (mortgages and pledges) represent a 35% and a 13% share, respectively.
9
ANNUAL REPORT 2007 Chapter II: Monetary Evolution and Amendments to Central Bank’s Regulations
Loans to Private Sector Billions of pesos
1.6
Overdrafts
Growth 2004 - 2007
2.4 2.7
3.3 3.2
6.0
Promissory Notes 0.2
Leasing Other Mortgage
-0.5
1.4
0.4 0.7
2.2 1.9
2005 2006
Credit Cards -2
0.8
3.1
5.7
2.3 2.1
2007 0
Mortgage and Pledge $10.0 billions 13%
4.4
1.4
2004 Consumer
Comercial $41.4 billions 52%
9.0
0.8 0.9 1.2 0.7 0.2 0.8 1.2
0.1
Pledge
7.2
2
Consumer $28.2 billions 35%
8.2
4.1
4
6
8
10
It is important to highlight that, of the total bank financing to the financial system’s private sector as a whole at the end of 2007, 50% corresponds to commercial lines of credit, while 31% are consumer loans and credit card financing, and the remaining 19% are loans with tangible collateral (mortgages or pledges). Loans to Private Sector December 2007
In spite of the stagnation of private sector deposits during the third quarter, as a consequence of the world subprime mortgage market crisis, the credit continued to grow. In addition, all growth records were beaten in the months of September and October.
10
ANNUAL REPORT 2007 Chapter II: Monetary Evolution and Amendments to Central Bank’s Regulations
Deposits and Loans to Private Sector Index December 2006 = 100 Loans
150
Deposits
140 130 120 110 100 90 80
Dec. 2007
Nov. 2007
Oct. 2007
Sep. 2007
Aug. 2007
Jul. 2007
Jun. 2007
Apr. 2007
May. 2007
Mar. 2007
Jan. 2007
Feb. 2007
Dec. 2006
Nov. 2006
Oct. 2006
Sep. 2006
Aug. 2006
Jul. 2006
Jun. 2006
Apr. 2006
May. 2006
Mar. 2006
Feb. 2006
Jan. 2006
70
In this sense, the crisis served to show that it is a priority for the banks to increase loan amounts. Since past August until November, during which period a certain uncertainty prevailed with regard to the continuity of deposit growth and regarding the level that could be achieved by interest rates in the future, banks continued to expand their credit portfolios at a pace faster than that recorded in previous months. Interest Rates The impact of the international financial crisis boosted an increase of time deposit interest rates, particularly those applicable to deposits for higher amounts of money. There was a 7.9% increase in private banks BADLAR rate in June, as a 13.7% increase in November. However, towards year end, interest rates on deposits had started to decrease, and at the beginning of 2008 they continued to show this trend.
11
ANNUAL REPORT 2007 Chapter II: Monetary Evolution and Amendments to Central Bank’s Regulations
BADLAR
In spite of the increase of financial costs provoked by the increase in interest rates on deposits, interest rates applicable to new deposits granted continued to show levels much lower than those prevailing in the year 2003. Current account overdrafts recorded a slight increase of 17.1% to 17.4% as a mean for the year 2007, while other advance payments increased from 12.7% to 15.3%. Interest rates applicable to discounts of promissory notes amounted to 14.1%, thus showing an increase with regard to the 12.5% recorded in the previous year, and they were even lower than the 17.7% observed in 2003. It is to be highlighted that the mean rate of new mortgage loans granted during the year was reduced from 11.7% to 11.2% in the year 2007. On the other hand, mean rates applicable to credit card financing were reduced from 27.2% (previous year) to 26.1% in 2007. In spite of increases mentioned for some types of loans, it is important to point out that they were anyway kept at levels lower than those observed during the past decade, both in real and in nominal terms.
12
ANNUAL REPORT 2007 Chapter II: Monetary Evolution and Amendments to Central Bank’s Regulations
Interest Rates for Loans in Pesos As annual nominal percentages Year 2003
Year 2004
Current accounts overdrafts
40.6
16.3
15.7
17.1
17.4
-23.2
Other advance payments
24.7
11.6
10.1
12.7
15.3
-9.4
Promissory notes
17.7
10.8
10.3
12.6
14.1
-3.6
Mortgage loans
18.0
12.0
11.3
11.7
11.2
-6.8
Pledge loans
19.7
13.3
10.3
9.9
11.3
-8.5
Consumer loans
45.9
29.7
25.9
24.7
25.7
-20.2
Credit cards
54.8
30.7
27.7
27.2
26.1
-28.6
Type of loan
Year 2005
Year 2006
Year 2007
Difference 2003 - 2007
Source: ABA based on Central Bank’s data.
Main Regulatory Changes Central Bank’s Repos and Swaps Transactions As of February 7, the Central Bank started to offer fixed-rate bonds and notes swaps for variable rate debt instruments with different terms of maturity, to develop a reference for the longer term fixed-rate yield structure. It also included 3 year term variable rate bond swaps in exchange for outstanding variable rate notes for 2 year terms or less. On the other hand, at the end of August, the Central Bank extended repos and reverse repos transactions to up to 90 calendar day terms, through the application of LEBAC, NOBAC, National Government Bonds, and BOGAR, as eligible assets. Previously, the maximum term allowed was 30 days. Changes to Access the Exchange Market In March, the Central Bank provided for the extension of the terms for income and settlement of foreign currency from foreign financing at the local exchange market. Terms were extended for one year from the 30 or 90 day term in force before for transactions for more or less than the equivalent to US$ 50,000,000, respectively. Afterwards, resident legal persons were exempted from the 2,000,000 Pesos threshold to access the exchange market, provided the funds were intended for the acquisition of certain non-financial assets. Entry of funds intended to make new capital contributions in resident companies was also exempted, provided the funds were intended to acquire non-financial assets. 13
ANNUAL REPORT 2007 Chapter II: Monetary Evolution and Amendments to Central Bank’s Regulations
Book Value of Government and Central Banks’ Bonds The Central Bank included new valuation criteria in order that financial institutions determine the book value of debt instruments issued by the Central Bank (LEBAC and NOBAC). First, such instruments may be accounted for in investment accounts, which imply that they are accounted for at their cost of acquisition plus their implicit yield, provided the financial institution undertakes to keep them in their portfolio until their maturity. The difference with regard to the market value shall be reflected in a note included in the financial statements. If an institution does not keep its holdings accounted for in investment accounts until maturity, it shall assess them at market price. Second, the concept of valuation referred to as “Available for sale” was authorized for public bonds issued by the national government or by the Central Bank, and which are publicly traded. In this case, variations in the market price of bonds accounted for in these accounts are reflected in the net worth without affecting the institution’s income statement. It is not necessary to keep them until maturity, and they can be used for repos transactions without changing their book value. This scheme is broadly used at the international level. Changes to Minimum Reserve Requirements Since June, deposits having a compensation that exceeds 15% of the mean private bank BADLAR rate for the previous month shall be subject to a 100% reserve requirement. Until such month, this provision was only applicable to those deposits exceeding 35% of such rate. Afterwards, the Central Bank unified minimum reserve requirements for the months of July and August 2007, in order to contribute to decompress the interbank loan market, and it temporarily reduced, for this period, the minimum daily reserve requirement from 50% to 40%. Then, it provided for the unification of the minimum reserve requirement for the months of October and November in only one two-month period, with the particular feature that the liquidity surplus eventually recorded in October could not be applied in November. On the other hand, it set forth the same minimum reserve requirement for public bond term deposits as for deposits made in cash. Compliance with this requirement shall be carried out using holdings valued at market prices and of the same kind, and they shall be deposited in special accounts authorized by the Central Bank. Change of Small and Medium-Sized Companies Definition The Central Bank updated the terms and conditions to consider a company as Micro, Small or Medium-Sized Company in accordance with Regulation 147/06 issued by the Secretary of Small and Medium-Sized Companies and Regional Development. Therefore, annual sales shall not be higher than:
14
ANNUAL REPORT 2007 Chapter II: Monetary Evolution and Amendments to Central Bank’s Regulations
Designation of Small and Medium-Sized Company Amounts in Pesos
Size/Sector
Agriculture
Industry and Mining
Business
Services
Construction
Micro Company
456,000
1,250,000
1,850,000
467,500
480,000
Small Company Medium Sized Company
3,040,000
7,500,000
11,100,000
3,366,000
3,000,000
18,240,000
60,000,000
88,800,000
22,440,000
24,000,000
Issuance of Internal LEBAC and NOBAC In September, the Central Bank started to issue debt instruments only negotiable locally and whose holders can only be legal persons constituted in the country subject to the permanent inspection of regulatory and control national organizations, and financial institutions authorized by the Central Bank for its own portfolio and for individuals residing in the country and for official accounts. These notes are referred to as Internal LEBAC and NOBAC. In November, amendments were introduced to the negotiation and holdings of these notes, and it was set forth that only the following parties can be holders thereof: a. Financial Institutions authorized by the Central Bank, b. Retirement and Pension Trust Funds, according to their equity and to managed funds, c. Labor Risk Insurers, d. Insurance Companies, e. Pension Funds, f. Holders of official bank accounts, and g. Individuals residing in the country. The remaining terms and conditions are similar to other LEBAC and NOBAC and they may be used in the same transactions. Prudential Treatment of Financial Derivatives As of November, a new scheme was set forth for calculation of credit risk fractioning exposure of financial derivatives transactions, and measures were introduced according to each transaction risk depending on the type of contract, the replacement value, the market valuation frequency, and the underlying asset volatility. Before, they were accounted for at 20% of the net notional value of applicable guarantees, without differentiating according to the derivative features, its replacement value, or its residual term.
15
ANNUAL REPORT 2007 Chapter II: Monetary Evolution and Amendments to Central Bank’s Regulations
With this new scheme, each transaction credit exposure is determined daily as the summation of real (replacement value) and potential exposure, without exceeding its net notional value of corresponding guarantees. Formulae were set forth for risk-to-value calculation for different transaction groups, such as forward contracts, purchase and sale options, and other derivatives. The maximum threshold of the aggregate securities and/or cash and cash equivalents that may be pledged for certain transactions -such as foreign lines of credit, financial derivatives, financial check transactions and clearing house obligations- was also extended. This new threshold shall apply to any and all pledging of assets. New System of Cooperative Credit Institutions The Central Bank issued regulations applicable to Act 26,173, and it set forth a new regulatory framework for Cooperative Credit Institutions, under an agreement with cooperative sector representatives and their enforcement agency, the National Institute for Cooperatives and Social Economy (Instituto Nacional de Asociativismo y EconomĂa Social INAES). It is worth mentioning that they shall apply, at least, 85% of their resources to finance productive and consumption activities in their area of influence, and that they shall not transfer funds to major urban financial centers. Different from the act that was previously in force, they can operate both with their associates as well as with non-associates, without a minimum contribution requirement. Deposits received shall be included in the deposit guarantee system under the authority of the Central Bank. In addition, Cooperative Credit Institutions shall comply with solvency, risk management, liquidity and information regime requirements set forth by the Central Bank. They can set up to 5 branches in their area of influence to extend their operations outside their location. The Central Bank Authorized the Extension of the Banking Services Offer in Banks On the other hand, the Central Bank authorized financial institutions to extend services rendered to their customers through their business units that are not branches. As of April, banks were to render payment and collection services, receipt and delivery of commercial and administrative management and custody documents related to these services, provided payments and collections are exclusively carried out through delivery and receipt of checks or other means of payment that may be transacted in electronic clearing houses. In addition, the maximum credit amount that may be disbursed in cash in special agencies for the rendering of certain services was increased from 2,000 Pesos to 5,000 Pesos. Authorization to Set Up 57 New Branches The Central Bank authorized the setting up of 57 new bank branches, all pertaining to private financial institutions and located in various regions of the country. Therefore, a total 16
ANNUAL REPORT 2007 Chapter II: Monetary Evolution and Amendments to Central Bank’s Regulations
of 231 new bank branches were added to the Argentine financial system in the past two years. Total Financial Cost Publication The Central Bank provided that financial institutions shall indicate their total financial cost in their publicity for lines of credit offered to the general public, and that they shall ascribe to it similar or more importance as that given when informing the annual nominal interest rate, both when this latter variable is published, as where the number of installments and/or their amount is published.
17
ANNUAL REPORT 2007 CHAPTER III: Financial System
Chapter 3: Financial System Introduction In relation to the financial system, the year 2007 represents not only the continuation of the recovery process observed since the crisis of the years 2001/2002, but also the success after being put to the test for the first time since that crisis. Actually, as it happened with other emerging markets in mid July, national markets started to reflect the uncertainty of international financial markets caused by the breakdown of the United States subprime mortgage loans market. As it was to be expected, liquidity problems and the following increase of international interest rates affected the local market and caused a decrease of public bond and share market value. At the same time, these problems caused a decrease in capital entry and a certain pressure on the exchange market, bank deposits stop growing, and inter-institutional credit was suspended, thus generating an illiquidity situation affecting the market, which also affected obligations issued by the Central Bank with the purpose of regulating the amount of Money. The Central Bank adopted various measures to reduce the impact of this situation: 1) it set forth bi-monthly minimum reserves requirements to decompress the pressure during the most critical times; 2) it allowed institutions to record LEBAC and NOBAC technical prices, which allowed to prevent the effect of volatility of such debt instruments on financial institutions’ income statements; 3) it opened reverse repos lines in order that institutions could access the necessary liquidity, which was not fully utilized due to the sound economic situation of such institutions; 4) it restricted the issue of new debt instruments and it repurchased part of the debt held by the banks, thus injecting new liquidity into the market. This group of measures, together with the task carried out by financial institutions, contributed to reduce the impact of the foreign crisis, and allowed the rapid normalization of the market, even though at the beginning of 2008 interest rates were still at levels higher than those recorded in June 2007. The effect of distortions that still affect financial system balance sheets, arising from the 2001/2002 crisis, is even less and it tends to disappear. At the end of 2007, 87% of differences paid on account of judicial injunctions (amparos) were already amortized, and this accounted for only 0.5% of total assets. On the other hand, only one institution already has rediscounts with the Central Bank, and 93% of the original debt has already been repaid. In the year 2007, according to the schedule implemented, minimum capital requirements forbearances and the gap between market and book values of public sector assets were reduced.
18
ANNUAL REPORT 2007 CHAPTER III: Financial System
Financial System Recovery Stages Stage
Feature
Year 2002
Upon year end, deposits started to recover.
Year 2003
Towards mid year, private sector credit was reinstated and there was a reduction in non-performing rates.
Year 2004
Credit reinstatement extended to private sector and to business and home sectors.
Year 2005
First year with positive income recorded in balance sheets. End of repayment of re-structured deposits.
Year 2006
Medium-term credit grew and profit capitalization consolidated equity improvement.
Year 2007
Credit continued to grow in spite of the international financial crisis, deposits grew and profitability was reduced.
Profitability, Efficiency and Intermediation Margins The impact of international financial market crisis caused a reduction in financial system profitability. From the 14.3% recorded in 2006, the profitability in relation to net worth was reduced to 11.1% in 2007. Reduction of unit margin and CER variation affected the financial margin, which amounted to 5.7% of net assets during the year. These results were partially set off by the strong increase shown in private sector loans. Uncollectibility charges recorded an increase with regard to the previous year, even though they were maintained at levels much lower than those reached during the crisis and lower than historical figures. On the other hand, there was also an increase in administrative expenses essentially driven by the increase in salary costs, which exceeded the system productivity growth. The lesser impact of amortization on exchange differences paid under judicial injunctions (amparos) confirmed the decreasing trend of crisis consequences still affecting institutions balance sheets. With these figures, the financial system profitability as a whole reached 1.5% of net assets (ROA) for the entire year 2007 and, excluding crisis consequences, the final result climbed to 2.5% of assets for the same period.
19
ANNUAL REPORT 2007 CHAPTER III: Financial System
Portfolio Quality During the year 2007, the non-performing rate decrease that started in the year 2003 continued. The total financial system non-performing portfolio represented 2.7%, significantly below 3.4% and 5.2% levels registered in 2006 and 2005, respectively. In the case of private sector financing, non-performing financing was reduced to 3.2%, below the 4.5% recorded during the previous year, and only the sixth part of the level observed three years before. In turn, during 2007, the non-performing commercial portfolio was reduced from 4.5% to 3.4%. The portfolio intended for family consumption (including home financing) showed a slight improvement in its non-performing level, as it decreased from 3.5% to 3.4% in the same period. Non-performing Loans to Private Sector %
Non-performing Loans %
20
ANNUAL REPORT 2007 CHAPTER III: Financial System
It is worth mentioning that the non-performing financing recorded in private banks continued to be lower than that recorded in public institutions. Private bank non-performing portfolio was reduced to 2.5%, while public bank non-performing portfolio almost doubled this rate, amounting to approximately 4.9% of total private sector financing. Exposure to the Public Sector After reaching approximately half the assets during 2002 on account of compensations for losses caused by asymmetric pesification, the exposure of the financial system to the public sector has decreased constantly during the past years. In October 2007, the exposure had been reduced from 33.4% to 29.5% of total assets recorded in December of the previous year. As of July 2007, the five-point reduction of the maximum threshold for bank exposure to the public sector in relation to total assets became effective, which was set to be 35% excluding holdings of bonds issued by the Central Bank (LEBAC and NOBAC), both on account of own portfolio and of repos transactions counterpart portfolio. This index was reduced from 21.6% to 15.8% during 2007 for the total financial system, notwithstanding the fact that some institutions still exceed this index. If considered for each group of institutions, international banks recorded the lowest incidence. Credit to Public Sector (excluding NOBAC and LEBAC) As % of Assets
50 48.5
45
46.5
40
39.6
35 30
30.8
25 23.0
20 15
18.0 16.9
16.2
16.2
17.3
21.6 15.8
10 5 0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
21
ANNUAL REPORT 2007 CHAPTER III: Financial System
Exposure to Public Sector As % of Assets
50 45
LEBAC/NOBAC
40
Compensation Bonds + Loans
35 30 25 20 15 10 5 0 Dec. 2000
Dec. 2001
Dec. 2002
Dec. 2003
Dec. 2004
Dec. 2005
Dec. 2006
Oct. 2007
Interest Rate Structure and Composition During 2007, the financial cost of deposits continued to be the main component of bank credit cost. The increase of deposit raising cost as of mid year explains virtually all the mean increase observed in interest rates on loans. As a counterpart, in the year 2007 the trend observed during the past years continued decreasing the incidence of administrative expenses on interest rates on loans, mainly as a result of scale economies obtained from the sustained growth of private sector credit portfolios. Additionally, the increase of income on account of non-financial banking services also allowed absorbing more easily the impact of administrative expenses on financial intermediation. During the first ten months of 2007 the mean interest rate on loans offered by private sector banks, as it arises from balance sheets, increased to 15.1% per year. Even when during the last part of the year a certain trend towards increase of interest rates on loans was observed, the strong competence prevailing in the market maintained this rate below the levels that had prevailed during the convertibility for most credit lines, especially when adjusted according to price increases. The legal reserve cost amounted to 2.6 percentage points per year, calculated as the amount that arises from the cost of immobilized assets net of the compensation acknowledged by the Central Bank for a part thereof. Together with the deposit raising cost, they account for half the cost of private sector credit. 22
ANNUAL REPORT 2007 CHAPTER III: Financial System
The incidence of administrative expenses net of income and of expenses generated by the rendering of other non-financial banking services amounted to 4.7 percentage points per year. Most of this component is the labor cost. The tax component increased the cost of credit during this period in 2.3 percentage points per year as a result of the incidence of income tax, gross income tax, SEDESA contribution (deposit insurance fund), and other municipal and provincial taxes. The non-performing loan portfolio contributed to increase the cost of credit in 1.6 percentage points, approximately a third part of the impact that it had in the year 2001. Mean rates implied in balance sheets corresponding to international banks were lower than the average rate of the whole financial system, and it should be highlighted that one of the main factors contributing to this was the higher efficiency level shown in the administration of their expenses. Interest Rate on Loans
As annual nominal percentages
2001
2002
2003
2004
2005
2006
2007
International Banks 2007
19.5
28.9
13.4
11.0
11.9
13.5
15.1
13.7
Raising cost
8.6
13.9
9.7
3.2
3.8
5.0
5.5
4.3
Net administrative expenses I
4.3
7.0
7.7
6.5
6.3
5.3
4.7
3.6
Operating income
-2.0
-16.9
-14.2
-6.6
-4.3
-2.4
-1.6
0.0
Net administrative expenses II
2.3
-9.9
-6.5
-0.2
2.0
2.9
3.0
3.6
Taxes. SEDESA and contributions Non-collectibility
1.5 4.8
1.7 18.8
2.5 4.7
2.4 3.0
2.5 1.9
2.1 1.4
2.3 1.6
1.5 1.5
Net reserve
2.2
4.4
3.1
2.5
1.7
2.2
2.6
2.8
Item
Interest rate on loans (*)
Financial System (**)
(**)
(*) The calculation was made using non-financial private sector loans. (**) It corresponds to 10 annualized months.
Capitalization In the year 2007, the financial system net equity increased 11.7%, reaching a total of 36,9 billion Pesos as a result of capitalization of profits obtained and of new equity contributions made during the period.
23
ANNUAL REPORT 2007 CHAPTER III: Financial System
Shareholders' Equity In billions of Pesos
40 35 30 25 20 15 10 5 0 Dec. 2000
Dec. 2001
Dec. 2002
Dec. 2003
Dec. 2004
Dec. 2005
Dec. 2006
Dec. 2007
Cumulative Capitalizations 2002 - 2007 In billions of Pesos
Capitalizations amounting to 1.85 billion Pesos were made, mainly corresponding to private banks. It is worth mentioning that capitalizations made by financial institutions since the crisis amounted to approximately 17 billion Pesos, of which around 56% -approximately
24
ANNUAL REPORT 2007 CHAPTER III: Financial System
9.5 billion Pesos- correspond to international banks that have capitalized debts and/or injected new funds since the beginning of the crisis. Financial Institutions Capitalizations 2002 - 2007 Per type of institutions - in billions of pesos
Profits capitalized and injection of new funds allowed institutions to comply with the increase in the minimum capital requirement implied by the elimination of forbearances and regulatory amendments set forth by the Central Bank after the crisis. In fact, during 2007 the capital integration amounted to 16.8% and 19.3% of risk weighted assets for the total system and private banks, respectively, and this level complied in both cases with minimum capital requirements in force. Financial Institutions Capitalizations 2002 - 2007 Market Share
25
ANNUAL REPORT 2007 CHAPTER III: Financial System
Financial System Tax Burden The financial system is affected by a great variety of direct and indirect taxes, general and specific, which are part of costs implied in rendering banking services, both financial and transactional. During the first 10 months of 2007, the amount paid on account of taxes by the financial system as a whole recorded a 51.4% increase with respect to the previous year. This charge represents 1.03% of total assets, above the 0.79% recorded in the previous year, and higher than the 0.75% registered in 2005. This total includes Gross Income Tax, Income Tax, SEDESA contribution (deposit insurance fund) and taxes included within administrative expenses, such as real estate taxes of branch and office buildings. The income tax was the highest during the first 10 months of 2007: it recorded an 86% increase with respect to the previous year, and a 38% share of total tax burden. The second position corresponds to the amount paid on account of gross income tax, which represented 33% of the total, followed by taxes included in administrative expenses, which represent 19%. The remaining 10% corresponds to SEDESA contribution for the deposit guarantee insurance. Tax Burden
As % of Assets
26
ANNUAL REPORT 2007 CHAPTER III: Financial System
Share of Loans and Deposits per Group of Institutions According to the information available in October 2007, international banks continue to be the most representative group in this item, with 35.9% of private sector loans, followed by local private banks and public banks, with 35.6% and 24.8%, respectively. The remaining 3.8% corresponds to non-banking financial institutions, such as financial companies and credit funds. Private Sector Loans
Private Sector Deposits
With regard to private sector deposits, again, international banks are the most representative group, with 37.3% of private sector deposits, followed by local private banks and public banks, with 32.0% and 30.3%, respectively.
27
ANNUAL REPORT 2007 CHAPTER III: Financial System
Financing to Small and Medium-Sized Companies Although in Argentina the credit granted to Small and Medium-Sized Companies is not discriminated from the total of credits granted, we can obtain an approximate figure through loans granted by banks to legal persons for amounts less than one million Pesos or US Dollars. According to the information provided by the Central Bank, new loans amounting to less than one million Pesos or US Dollars granted to legal persons maintained the growing trend observed during past years and they recorded a 121% increase in 2007 compared to 2005, which represents a third part of total loans granted to legal persons during that period. On the other hand, interest rates applied to these credits were maintained approximately on 10.7% per year, after having drastically decreased from the peak reached during the crisis. At present, they are kept below 11% since 2005, even though bank deposit interest rates have doubled since that year. The debt balance of this debtor category (financing of less than one million Pesos or US Dollars granted to legal persons) reached, at the end of 2007, a total of 9.5 billion Pesos, which implies a 69% growth during the last three years. From the latest information available it also arises that the financial system assists 114,000 companies in these financing trenches, which represent 94% of the total number of legal persons assisted by the system. The business portfolio similar to consumption corresponding to business loans from amounts lower than 500,000 Pesos -intended basically for small and micro companiesrecorded a 64.8% growth between December 2005 and December 2007, thus increasing at a higher pace than total financing, which caused their share to increase to 7.7% of the financial system portfolio. Loans Granted to Legal Persons
Less than 1 million (Pesos or US Dollars)
28
ANNUAL REPORT 2007 CHAPTER III: Financial System
International banks increased 106.2% their financing portfolio to Small and Medium-Sized Companies during the same period, while local private banks registered a 76.9% increase, and public banks, only 38.7%. The increase of this type of financing also contributed to significantly reduce the segment non-performing rate, from the 10.8% observed in December 2005 to 2.9% in December 2007. However, the non-performing rate is still higher than the mean non-performing rate shown by system financing, which amounts to 2.6%. Although the increase of loans during the past years has turned out to be very significant, there is still a broad margin before reaching maximum historic levels. At present, total private sector loans is approximately 11% of the GDP, below the 23.2% reached in 1999, but above the 7.6% recorded in 2004. Financing to Companies
For less than a million (Pesos or US Dollars)
29
ANNUAL REPORT 2007 Statistical Appendix
TABLE 1: Deposits in Domestic Currency
Monthly average of daily balances (in millions of pesos) Period
Current Account
Savings Account
Time Deposits (1)
Total
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
December December December December December December December December December December December December December December December
3,129 4,909 6,214 6,993 7,011 10,514 12,178 12,648 12,580 11,951 8,309 23,305 30,825 38,630 47,386
1,980 2,758 4,653 5,242 4,688 5,936 7,601 8,206 8,347 7,924 4,499 9,144 14,554 21,616 25,965
2,955 5,998 8,903 9,622 7,343 8,756 12,057 13,577 12,791 12,024 5,872 33,435 38,472 42,179 49,253
8,064 13,665 19,770 21,858 19,042 25,207 31,836 34,432 33,719 31,900 18,681 65,885 83,851 102,425 122,604
2006
January February March April May June July August September October November December
47,229 45,549 45,809 45,855 47,978 49,704 48,912 48,903 49,299 50,584 53,417 55,386
26,657 27,849 28,424 27,484 28,766 28,130 29,591 28,435 28,143 28,728 28,742 30,157
49,933 50,927 51,323 53,525 54,501 57,615 58,864 62,160 64,216 65,111 66,124 65,906
123,819 124,326 125,556 126,863 131,245 135,448 137,367 139,499 141,658 144,423 148,283 151,449
2007
January February March April May June July August September October November December
55,721 55,801 55,767 57,432 60,397 59,057 60,074 60,545 57,861 57,453 58,799 61,611
30,309 30,678 30,557 31,292 31,734 32,718 34,924 34,564 34,918 35,310 35,804 37,849
67,533 70,798 72,959 73,496 74,287 75,587 75,308 77,934 82,141 81,998 81,780 80,809
153,562 157,277 159,284 162,219 166,418 167,362 170,307 173,043 174,919 174,762 176,382 180,268
(1) Starting on March 2002, it includes rescheduled deposits. Source: ABA based on "Statistical Bulletin", "Daily Information on Deposits, Credit and Cash in Domestic Currency" and "Main Financial System Liabilities", Central Bank.
30
ANNUAL REPORT 2007 Statistical Appendix
TABLE 2: Deposits In Foreign Currency
Monthly average of daily balances (in millions of dollars) Period
Current Accounts
Demand Deposits
Savings Accounts
Time Deposits
Deposits on Behalf of Central Bank
Total
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
December December December December December December December December December December December December December December December December December December December December December
… … … … … … … … 292 351 441 472 646 684 829 781 2,442 26 52 25 10
40 11 12 16 42 597 782 839 392 482 493 1,092 1,528 2,119 1,695 1,162 2,385 327 349 417 455
… … … … … … 1,137 1,866 3,698 4,032 3,445 4,529 5,330 5,304 6,146 5,602 9,772 83 457 1,848 1,455
… … … … 1,063 2,069 4,641 8,037 13,711 18,122 18,321 22,273 29,666 34,435 38,475 44,155 33,116 427 1,041 1,646 2,236
553 820 994 1,487 538 177 145 … … … … … … … … … … … … … …
593 831 1,006 1,503 1,644 2,843 6,705 10,742 18,093 22,986 22,699 28,366 37,169 42,542 47,145 51,700 47,715 863 1,899 3,936 4,157
2006
January February March April May June July August September October November December
13 12 13 14 15 13 12 12 9 6 3 4
468 470 467 435 426 440 495 519 481 496 523 518
1,582 1,618 1,711 1,908 2,048 2,065 2,077 1,930 1,960 2,021 2,006 1,937
2,472 2,369 2,405 2,496 2,573 2,664 2,759 2,882 3,021 3,093 3,180 3,227
… … … … … … … … … … … …
4,534 4,468 4,596 4,853 5,061 5,182 5,342 5,343 5,471 5,617 5,713 5,686
2007
January February March April May June July August September October November December
4 3 4 4 4 4 4 4 5 5 5 4
553 534 478 496 538 546 481 514 551 612 634 690
1,974 1,931 1,894 1,897 2,031 1,978 2,096 2,203 2,273 2,322 2,392 2,400
3,787 3,763 3,778 3,835 3,920 3,898 3,888 4,189 4,463 4,622 4,753 4,870
… … … … … … … … … … … …
6,318 6,231 6,154 6,232 6,492 6,425 6,470 6,910 7,292 7,561 7,784 7,964
Source: ABA based on "Statistical Bulletin", "Daily Information on Deposits, Credits and Cash in Foreign Currency" and "Main Liabilities of Financial System", Central Bank.
31
ANNUAL REPORT 2007 Statistical Appendix
TABLE 3: Judicial Injunctions Period
Number of Lawsuits
Principal (1)
Update According to CER
Exchange Rate Difference
Total Amount Paid
In Millions of Pesos
Average Amount per Lawsuit In Thousands of Pesos
2006 January February March April May June July August September October November December
158 958 1,451 1,240 1,500 1,297 1,140 1,094 1,366 1,350 1,522 1,979
2 20 33 26 40 32 26 27 30 31 32 52
2 14 24 20 31 25 21 22 24 26 27 45
2 13 20 17 23 18 18 18 18 19 21 40
6 46 78 64 94 76 66 66 72 76 80 137
40 48 54 51 63 58 58 61 53 56 53 69
2007 January February March April May June July August September October November December
199 726 924 738 876 650 805 774 1,026 1,407 1,471 1,686
5 12 19 20 20 16 31 50 82 73 40 65
4 11 17 18 18 15 30 48 82 66 40 66
4 9 13 12 11 8 15 19 27 28 19 28
13 31 49 50 49 40 75 117 190 166 99 158
64 43 53 68 56 61 93 151 185 118 67 94
Year 2002 Year 2003 Year 2004 Year 2005 Year 2006 Year 2007
185,099 94,054 45,240 20,704 15,055 11,282
6,071 2,368 1,154 526 351 432
1,441 1,019 563 323 282 413
6,739 1,954 1,047 382 228 191
14,251 5,340 2,764 1,232 861 1,037
77 57 61 59 57 92
371,434
10,903
4,041
10,541
25,485
69
Total
(1) Pesified at $1.40 per US Dollar. Source: ABA based on Central Bank's data.
32
ANNUAL REPORT 2007 Statistical Appendix
TABLE 4: Monetary Agregates
(in millions of pesos of December 2007) Period
M1
M2
M1 + Foreign Currency Demand Deposits
M2 + Total Deposits in Foreign Currency
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
December December December December December December December December December December December December
45,614 43,504 53,911 62,744 66,788 65,752 60,923 44,437 57,383 81,099 94,777 107,160
84,616 73,792 90,434 111,851 123,235 120,519 112,017 72,062 120,489 157,552 180,748 198,093
46,446 44,437 55,476 64,918 69,591 68,275 62,866 49,265 58,615 82,287 96,090 108,561
107,602 96,491 118,800 149,021 165,777 167,663 163,718 119,777 123,501 163,174 192,445 210,619
2006
January February March April May June July August September October November December
107,316 103,742 103,719 102,981 105,397 107,761 108,586 108,319 108,862 110,312 113,632 118,521
198,703 196,814 197,678 197,282 201,908 206,505 209,778 211,338 213,564 216,024 220,082 225,587
108,778 105,219 105,195 104,359 106,741 109,156 110,146 109,955 110,380 111,869 115,252 120,119
212,512 210,524 211,815 212,168 217,360 222,467 226,244 227,786 230,521 233,427 237,653 242,988
2007
January February March April May June July August September October November December
119,631 119,281 119,076 119,901 122,788 121,772 124,481 124,419 120,120 119,315 119,736 125,342
227,882 230,913 232,169 232,970 236,061 236,113 239,265 240,778 240,100 238,594 238,170 243,999
121,350 120,948 120,568 121,446 124,458 123,466 125,991 126,052 121,869 121,264 121,739 127,522
247,366 250,245 251,248 252,236 256,064 255,895 259,386 262,563 263,053 262,492 262,574 269,013
Note: Monetary aggregates include public sector´s deposits. Source: ABA based on "Statistical Bulletin", "Daily Information on Deposits, Loans and Cash in Domestic and Foreign Currency" and "Main Financial System Liabilities", Central Bank and INDEC.
33
ANNUAL REPORT 2007 Statistical Appendix
TABLE 5: Monetary Agregates
Annual averages (as a percentage of the GDP) Period
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
M1
M2
3.7 5.0 3.9 2.6 2.6 2.2 2.9 4.3 5.7 6.4 6.4 7.3 8.0 8.5 8.8 8.3 7.6 10.2 11.9 14.1 14.4 14.4 14.4
9.3 13.8 12.3 10.8 8.3 4.2 5.2 7.5 10.7 12.0 11.0 12.5 14.3 15.7 16.4 15.8 13.9 22.6 25.3 27.3 28.0 27.7 28.1
M1 + Foreign Currency Demand Deposits 3.7 5.0 3.9 2.6 2.9 2.4 3.3 4.7 5.9 6.6 6.7 7.8 8.6 9.2 9.6 8.9 8.5 12.0 12.2 14.4 14.6 14.6 14.6
M2 + Total Deposits in Foreign Currency 9.4 13.8 12.4 10.8 14.9 5.2 7.8 11.4 16.9 20.2 19.3 22.3 25.4 29.1 32.7 33.2 32.7 27.1 26.3 29.4 30.2 30.1 30.7
Source: ABA based on data from "Statistical Bulletin", "Daily Information on Deposits, Loans and Cash in Domestic and Foreign Currency", "Main Financial System Liabilities" and "Annual Estimates of Global Supply and Demand. Period 1980-1992", Central Bank and "Economic Report", Ministry of Economy and Production.
34
ANNUAL REPORT 2007 Statistical Appendix
TABLE 6: Monetary Agregates in Real Terms (1)
Monthly average of daily balances (in millions of pesos of December 2007) Period
Cash Held by Public
Current Accounts
M1
Savings Accounts
Time Deposits
M2
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
December December December December December December December December December December December December December December December December December December December December December
12,784 14,644 12,224 10,651 8,636 9,409 14,589 19,185 25,104 27,264 25,855 27,774 32,321 34,013 33,159 30,311 22,304 22,843 36,656 42,719 49,873
16,472 14,564 9,534 7,457 8,855 5,539 9,670 13,926 17,132 18,350 17,649 26,137 30,423 32,775 32,593 30,611 22,133 34,540 44,443 52,057 57,286
29,256 29,208 21,758 18,108 17,492 14,948 24,259 33,111 42,237 45,614 43,504 53,911 62,744 66,788 65,752 60,923 44,437 57,383 81,099 94,777 107,160
9,923 9,948 8,629 6,320 2,609 7,821 6,120 7,823 12,829 13,755 11,802 14,756 18,988 21,264 21,627 20,296 11,983 13,553 20,983 29,130 31,390
31,023 44,249 39,143 49,543 20,461 7,170 9,134 17,014 24,544 25,247 18,485 21,767 30,119 35,183 33,140 30,799 15,641 49,553 55,469 56,841 59,543
70,202 83,405 69,529 73,971 40,561 29,938 39,513 57,948 79,609 84,616 73,792 90,434 111,851 123,235 120,519 112,017 72,062 120,489 157,552 180,748 198,093
2006
January February March April May June July August September October November December
50,962 49,927 49,746 49,602 49,788 50,522 52,631 52,710 52,975 53,327 53,693 56,792
56,354 53,815 53,973 53,379 55,610 57,240 55,955 55,609 55,887 56,985 59,939 61,729
107,316 103,742 103,719 102,981 105,397 107,761 108,586 108,319 108,862 110,312 113,632 118,521
31,807 32,903 33,490 31,994 33,341 32,394 33,852 32,334 31,904 32,363 32,252 33,611
59,580 60,169 60,470 62,307 63,170 66,349 67,340 70,684 72,798 73,349 74,198 73,455
198,703 196,814 197,678 197,282 201,908 206,505 209,778 211,338 213,564 216,024 220,082 225,587
2007
January 57,983 61,649 119,631 33,533 74,717 227,882 February 57,895 61,385 119,281 33,748 77,884 230,913 March 58,150 60,926 119,076 33,384 79,709 232,169 April 57,930 61,971 119,901 33,765 79,304 232,970 May 58,259 64,529 122,788 33,904 79,369 236,061 June 59,424 62,347 121,772 34,541 79,800 236,113 July 61,926 62,555 124,481 36,366 78,418 239,265 August 61,796 62,623 124,419 35,751 80,609 240,778 September 60,815 59,305 120,120 35,789 84,191 240,100 October 60,896 58,419 119,315 35,904 83,375 238,594 November 60,513 59,224 119,736 36,063 82,371 238,170 Decekmber 63,731 61,611 125,342 37,849 80,809 243,999 (1) Deflated by the combined price index. Source: ABA based on "Statistical Bulletin" and "Daily Information on Deposits, Loans and Cash in Domestic Currency", Central Bank and INDEC. 35
ANNUAL REPORT 2007 Statistical Appendix
TABLE 7: Central Bank's Monetary and Financial Liabilities Monthly average of daily balances (in millions of pesos) Period
Currency
Financial Institutions Deposits in the Central Bank
Monetary Liabilities
Net Position of Repos
Financial Liabilities (1)
Government Deposits in the Central Bank
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
December December December December December December December December December December December December
12,346 12,025 13,131 15,174 15,520 15,048 14,205 10,173 17,766 28,717 35,838 46,008
3,872 716 27 47 31 91 88 6,703 10,953 20,396 22,988 15,972
16,218 12,741 13,158 15,221 15,551 15,139 14,293 16,876 28,719 49,112 58,826 61,980
... 1,494 4,961 6,315 9,347 9,662 9,248 -4,773 -233 -46 5,491 5,422
... 15,010 18,137 21,536 24,898 24,802 23,541 12,109 28,486 49,066 64,317 67,403
... 456 1,049 478 1,620 1,827 1,016 171 79 559 486 1,227
2006
January February March April May June July August September October November December
47,136 46,643 46,576 47,288 47,442 48,598 50,729 50,822 50,901 51,621 52,248 56,158
18,598 18,714 18,842 20,143 21,299 21,498 21,741 23,813 25,448 26,109 28,013 28,660
65,734 65,357 65,418 67,431 68,741 70,096 72,470 74,636 76,349 77,729 80,261 84,818
3,537 4,142 2,608 2,933 5,305 5,549 4,733 4,969 2,983 3,252 3,318 1,666
69,271 69,498 68,027 70,364 74,046 75,645 77,203 79,605 79,331 80,982 83,579 86,484
1,749 1,727 3,171 3,035 3,662 4,513 3,231 753 863 654 575 2,041
2007
January February March April May June July August September October November December
57,199 57,333 58,136 58,909 59,448 61,486 64,972 65,224 64,841 65,410 65,728 70,577
27,288 26,739 27,093 27,445 28,576 28,850 29,398 30,879 30,886 30,839 32,165 34,297
84,487 84,072 85,229 86,354 88,023 90,336 94,370 96,103 95,727 96,249 97,893 104,874
4,225 5,507 4,059 5,294 5,682 3,304 2,530 2,504 2,777 2,241 1,589 2,240
88,712 89,580 89,288 91,647 93,705 93,640 96,900 98,607 98,504 98,490 99,482 107,114
3,813 3,367 5,155 6,387 5,635 8,092 7,051 3,210 2,649 1,462 3,040 3,232
(1) Financial liabilities do not include the stock of LEBAC and NOBAC. Source: ABA based on "Statistical Bulletin" and "Central Bank´s Monetary Liabilities", Central Bank.
36
ANNUAL REPORT 2007 Statistical Appendix
TABLE 8: Central Bank´s Reserves (1) Monthly average of daily balances Period
Liquid Reserves (2)
Government Securities (3)
Total
In Millions of US Dollars
Monetary Liabilities (4) In Millions of Pesos
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
December December December December December December December December December December
17,503 20,871 24,975 24,910 24,077 14,815 10,265 13,820 19,310 27,262
1,793 1,746 1,683 1,456 1,314 4,534 ... ... ... ...
19,296 22,618 26,658 26,366 25,391 19,349 10,265 13,820 19,310 27,262
14,059 14,190 15,551 15,139 14,293 16,876 28,719 49,112 58,826 61,980
2006
January February March April May June July August September October November December
19,608 20,059 20,873 21,866 23,691 24,837 26,041 27,024 27,740 28,390 29,760 31,167
... ... ... ... ... ... ... ... ... ... ... ...
19,608 20,059 20,873 21,866 23,691 24,837 26,041 27,024 27,740 28,390 29,760 31,167
65,734 65,357 65,418 67,431 68,741 70,096 72,470 74,636 76,349 77,729 80,261 84,818
2007
January February March April May June July August September October November December
32,700 34,226 35,876 37,647 39,633 41,938 43,869 43,731 42,931 42,724 43,792 45,711
... ... ... ... ... ... ... ... ... ... ... ...
32,700 34,226 35,876 37,647 39,633 41,938 43,869 43,731 42,931 42,724 43,792 45,711
84,487 84,072 85,229 86,354 88,023 90,336 94,370 96,103 95,727 96,249 97,893 104,874
(1) Market values. (2) Bills, deposits in current accounts, demand and time deposits, gold and ALADI. (3) It includes bonds used as collateral for repos transactions. (4) Currency + Financial institutions deposits in Central Bank. Source: ABA based on "Reserves and Monetary Base" and "Foreign Currency Assets and Monetary Liabilities", Central Bank.
37
ANNUAL REPORT 2007 Statistical Appendix
TABLE 9: Loans To Private Sector
Monthly average of daily balances (in millions of pesos) Period
Overdrafts
Promissory Notes
Mortgage Loans
Pledge Loans
Consumer Loans
Credit Cards Financing
Others
Total
December December December December December December
9,125.5 6,691.8 5,150.1 4,793.9 6,796.0 9,028.2
15,840.1 11,223.7 7,479.7 6,716.7 9,479.9 15,266.4
16,986.1 16,183.9 11,554.6 9,401.0 8,830.5 8,845.5
4,942.2 3,707.5 2,264.3 1,324.5 1,672.3 2,335.2
5,489.2 4,889.3 2,685.9 2,332.9 4,184.0 7,148.7
4,027.8 3,656.0 2,091.2 2,288.7 3,175.5 5,206.7
6,919.7 5,110.4 4,815.9 4,070.5 4,803.6 4,999.4
63,330.6 51,462.6 36,041.7 30,927.3 38,941.6 52,829.7
2006 January February March April May June July August September October November December
8,835.4 9,015.3 8,950.0 8,796.0 9,277.7 10,079.5 10,719.1 10,857.9 10,985.5 11,421.6 11,878.9 12,107.6
15,951.9 16,095.8 16,625.0 17,381.1 17,932.4 18,530.5 19,272.7 19,900.6 20,649.7 21,395.1 21,895.9 22,558.1
8,921.5 8,980.7 8,993.0 9,107.0 9,136.5 9,251.2 9,407.2 9,603.3 9,679.4 9,890.0 10,097.8 10,132.6
2,446.2 2,547.3 2,628.1 2,762.0 2,881.7 3,027.4 3,069.5 3,196.6 3,333.2 3,472.0 3,614.3 3,761.4
7,594.5 7,855.3 8,192.5 8,593.8 8,971.7 9,385.0 9,857.2 10,507.6 11,101.8 11,781.1 12,522.2 13,009.3
5,596.0 5,728.9 5,906.7 5,975.7 6,242.9 6,585.2 6,319.2 6,262.2 6,542.1 6,716.1 6,926.3 7,399.8
4,973.3 5,028.2 5,157.3 5,243.5 5,358.2 5,312.5 5,444.4 5,556.0 5,736.1 5,845.4 5,848.4 5,916.8
54,319.1 55,251.9 56,452.6 57,859.7 59,801.6 62,171.7 64,088.7 65,884.0 68,029.0 70,521.7 72,784.0 74,884.7
2007 January February March April May June July August September October November December
11,620.7 11,472.4 11,543.2 11,920.0 12,718.2 13,088.2 13,952.8 13,621.8 13,305.7 13,542.1 14,134.6 14,675.2
23,493.0 23,839.5 24,354.0 24,927.6 25,359.2 25,560.6 26,747.7 27,967.5 29,095.4 29,838.9 30,352.1 31,449.3
10,375.5 10,630.5 10,873.1 11,107.9 11,363.9 11,654.3 12,074.6 12,603.6 13,101.8 13,605.4 13,998.4 14,416.8
3,885.8 4,003.5 4,135.7 4,258.8 4,418.1 4,568.2 4,723.6 4,980.5 5,237.6 5,501.8 5,756.7 5,965.0
13,537.6 14,139.1 14,667.7 15,119.5 15,518.7 16,234.7 16,883.9 17,747.6 18,693.5 19,526.7 20,369.6 21,047.8
7,852.1 8,133.6 8,224.6 8,478.0 8,650.5 9,057.8 8,927.9 9,272.6 9,786.2 10,107.7 10,694.2 10,954.0
5,595.8 5,553.6 5,868.8 5,877.9 5,629.3 5,822.0 5,929.7 6,093.8 6,405.3 6,638.5 6,637.0 6,869.9
76,359.6 77,773.1 79,666.9 81,688.5 83,658.1 85,985.3 89,239.5 92,288.1 95,626.0 98,763.5 101,943.2 105,377.3
2000 2001 2002 2003 2004 2005
Source: ABA based on "Main Assets of Financial System", Central Bank.
38
ANNUAL REPORT 2007 Statistical Appendix
TABLE 10: Loans To Private Sector Change in the last 12 months (as a percentage) Overdrafts
Promissory Notes
Mortgage Loans
Pledge Loans
Consumer Loans
Credit Cards Financing
Others
Total
December December December December December
-26.7 -23.0 -6.9 41.8 32.8
-29.1 -33.4 -10.2 41.1 61.0
-4.7 -28.6 -18.6 -6.1 0.2
-25.0 -38.9 -41.5 26.3 39.6
-10.9 -45.1 -13.1 79.3 70.9
-9.2 -42.8 9.4 38.7 64.0
-26.1 -5.8 -15.5 18.0 4.1
-18.7 -30.0 -14.2 25.9 35.7
2006 January February March April May June July August September October November December
35.2 34.6 31.9 27.3 29.8 31.5 32.0 32.1 33.4 34.2 32.1 34.1
63.4 63.6 63.4 63.7 61.3 58.0 53.6 51.8 50.5 51.4 49.0 47.8
0.2 0.7 1.7 2.9 3.0 4.8 7.2 9.4 10.7 13.6 14.8 14.6
42.9 45.6 47.7 50.4 51.3 56.0 56.8 59.5 63.4 62.3 61.1 61.1
70.6 70.6 70.6 69.7 67.5 72.9 74.3 77.4 77.3 81.5 83.0 82.0
69.7 67.9 65.1 67.4 71.8 76.5 62.5 58.5 57.0 50.2 45.7 42.1
5.8 7.9 10.5 7.7 9.6 7.6 13.6 13.5 17.2 23.0 23.4 18.4
38.0 38.5 39.0 38.7 39.3 40.5 40.1 40.5 41.5 43.3 42.5 41.7
2007 January February March April May June July August September October November December
31.5 27.3 29.0 35.5 37.1 29.8 30.2 25.5 21.1 18.6 19.0 21.2
47.3 48.1 46.5 43.4 41.4 37.9 38.8 40.5 40.9 39.5 38.6 39.4
16.3 18.4 20.9 22.0 24.4 26.0 28.4 31.2 35.4 37.6 38.6 42.3
58.9 57.2 57.4 54.2 53.3 50.9 53.9 55.8 57.1 58.5 59.3 58.6
78.3 80.0 79.0 75.9 73.0 73.0 71.3 68.9 68.4 65.7 62.7 61.8
40.3 42.0 39.2 41.9 38.6 37.5 41.3 48.1 49.6 50.5 54.4 48.0
12.5 10.4 13.8 12.1 5.1 9.6 8.9 9.7 11.7 13.6 13.5 16.1
40.6 40.8 41.1 41.2 39.9 38.3 39.2 40.1 40.6 40.0 40.1 40.7
Period
2001 2002 2003 2004 2005
Source: ABA based on "Main Assets of Financial System", Central Bank
39
ANNUAL REPORT 2007 Statistical Appendix
TABLE 11: Bank Credit (in millions of pesos) End of:
To Public Sector In Domestic Currency
In Foreign Currency
To Private Sector Total
In Domestic Currency
In Foreign Currency
Total
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
December December December December December December December December December December December December December December December December December
233 5,291 6,548 5,076 6,541 5,734 5,426 6,289 6,098 4,797 5,481 3,715 3,392 57,744 67,798 78,743 86,251
756 1,647 3,736 5,545 6,652 5,898 10,622 12,647 15,075 18,862 22,790 25,063 26,722 37,538 28,425 25,639 14,919
989 6,938 10,284 10,621 13,193 11,631 16,048 18,936 21,172 23,659 28,272 28,778 30,114 95,282 96,223 104,382 101,170
605 7,238 13,180 19,055 21,766 23,931 21,819 21,980 24,745 27,420 26,659 25,688 15,626 41,175 34,975 41,422 54,163
684 3,515 9,573 15,933 21,477 28,282 29,686 32,958 39,489 44,786 43,919 42,221 40,353 6,749 5,483 5,549 7,898
1,288 10,753 22,753 34,988 43,244 52,212 51,506 54,939 64,234 72,206 70,578 67,910 55,979 47,924 40,458 46,971 62,061
2006
January February March April May June July August September October November December
82,489 82,741 81,063 82,024 85,341 83,606 85,503 86,129 83,361 85,735 83,692 77,869
14,328 14,376 11,302 10,875 11,514 14,406 11,514 10,752 10,819 13,022 12,687 11,252
96,817 97,117 92,365 92,899 96,855 98,011 97,017 96,881 94,180 98,757 96,380 89,120
55,403 56,847 56,908 57,843 59,829 61,627 63,058 64,773 66,710 69,092 71,220 72,778
8,114 8,784 9,400 10,149 10,626 10,963 11,265 11,678 12,069 12,131 12,290 12,488
63,517 65,631 66,308 67,991 70,455 72,590 74,323 76,451 78,779 81,222 83,509 85,266
2007
January February March April May June July August September October November December
84,228 86,861 85,193 89,187 91,089 89,444 84,062 88,458 90,455 89,559 89,534 78,512
11,815 10,862 10,695 10,531 9,059 9,276 8,025 6,277 5,668 5,522 5,713 5,178
96,042 97,723 95,888 99,718 100,148 98,720 92,087 94,734 96,122 95,082 95,247 83,691
74,166 75,243 76,696 78,268 80,763 82,650 85,252 88,566 90,906 93,770 96,715 100,106
13,127 13,342 13,825 14,063 14,241 14,370 15,033 15,813 16,393 16,653 16,868 17,374
87,293 88,585 90,521 92,331 95,004 97,020 100,285 104,379 107,299 110,423 113,583 117,479
Source: ABA based on "Statistical Bulletin", Central Bank.
40
ANNUAL REPORT 2007 Statistical Appendix
TABLE 12: Nominal Bank Credit by Currency (in millions of pesos) End of:
In Domestic Currency
In Foreign Currency
Loans
Resources Earned on Loans
Total
Loans
Resources Earned on Loans
Total
Total
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
December December December December December December December December December December December December December December December December December
426 5,822 12,179 18,729 23,693 25,824 24,402 26,916 29,479 31,540 31,541 28,848 18,560 84,510 90,727 107,961 129,174
412 6,707 7,549 5,402 4,614 3,840 2,844 1,353 1,364 677 599 556 459 14,409 12,045 12,204 11,240
838 12,529 19,728 24,131 28,307 29,664 27,246 28,269 30,843 32,217 32,141 29,404 19,018 98,919 102,773 120,165 140,413
1,330 4,768 12,548 20,642 27,338 33,202 39,147 44,575 53,485 62,542 65,574 66,073 65,730 44,080 33,804 31,093 22,726
109 394 761 835 791 977 1,161 1,030 1,079 1,106 1,135 1,212 1,344 207 105 95 91
1,439 5,162 13,309 21,478 28,129 34,179 40,308 45,605 54,564 63,647 66,710 67,285 67,075 44,287 33,908 31,188 22,817
2,277 17,691 33,036 45,609 56,436 63,844 67,554 73,874 85,406 95,865 98,850 96,688 86,093 143,206 136,681 151,353 163,231
2006
January February March April May June July August September October November December
126,381 128,094 127,066 129,134 134,800 135,151 138,643 141,000 140,081 144,797 144,748 141,234
11,511 11,493 10,905 10,732 10,371 10,081 9,917 9,902 9,990 10,030 10,165 9,413
137,892 139,588 137,971 139,867 145,170 145,233 148,561 150,902 150,072 154,826 154,912 150,647
22,352 23,069 20,604 20,912 22,022 25,254 22,659 22,297 22,746 25,005 24,829 23,592
90 90 98 112 118 114 120 133 141 148 148 147
22,442 23,160 20,702 21,023 22,140 25,369 22,779 22,430 22,887 25,153 24,977 23,739
160,334 162,748 158,673 160,890 167,310 170,601 171,340 173,332 172,959 179,979 179,889 174,386
2007
January February March April May June July August September October November December
149,213 152,902 152,508 158,682 164,111 164,328 161,529 169,234 173,479 175,457 178,285 170,563
9,180 9,203 9,381 8,773 7,741 7,766 7,785 7,790 7,882 7,872 7,963 8,055
158,394 162,105 161,889 167,455 171,852 172,094 169,314 177,024 181,361 183,329 186,249 178,618
24,782 24,035 24,345 24,406 23,112 23,472 22,868 21,893 21,851 21,949 22,341 22,306
159 168 175 187 187 174 189 196 209 226 239 246
24,941 24,203 24,520 24,594 23,299 23,646 23,058 22,089 22,060 22,175 22,580 22,552
183,335 186,308 186,410 192,049 195,151 195,740 192,372 199,113 203,421 205,504 208,829 201,170
Source: ABA based on "Statistical Bulletin", Central Bank.
41
ANNUAL REPORT 2007 Statistical Appendix
TABLE 13: Bank Credit in Real Terms (1) (in millions of pesos of December 2007) End of:
In Domestic Currency
In Foreign Currency
Loans
Resources Earned on Loans
Total
Loans
Resources Earned on Loans
Total
Total
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
December December December December December December December December December December December December December December December December December
25,686 30,329 37,642 53,127 65,320 67,759 61,429 66,909 73,642 81,729 81,717 73,889 49,435 125,249 130,810 145,488 156,161
24,799 34,938 23,331 15,324 12,721 10,076 7,159 3,364 3,408 1,755 1,553 1,424 1,222 21,355 17,367 16,447 13,588
50,485 65,267 60,973 68,451 78,041 77,835 68,589 70,272 77,050 83,484 83,270 75,313 50,657 146,604 148,177 161,934 169,749
80,130 24,841 38,782 58,556 75,369 87,117 98,549 110,804 133,613 162,064 169,891 169,236 175,077 65,330 48,738 41,902 27,475
6,583 2,053 2,352 2,370 2,180 2,563 2,923 2,562 2,695 2,865 2,941 3,103 3,581 306 151 128 110
86,713 26,893 41,134 60,925 77,549 89,680 101,472 113,366 136,308 164,929 172,832 172,340 178,658 65,636 48,889 42,029 27,585
137,198 92,160 102,107 129,376 155,590 167,515 170,061 183,638 213,358 248,413 256,102 247,652 229,314 212,240 197,066 203,964 197,334
2006
January February March April May June July August September October November December
150,798 151,339 149,711 150,324 156,241 155,641 158,607 160,335 158,802 163,118 162,422 157,410
13,735 13,579 12,849 12,493 12,020 11,610 11,345 11,260 11,325 11,299 11,406 10,491
164,533 164,918 162,560 162,817 168,261 167,251 169,952 171,595 170,127 174,416 173,828 167,901
26,670 27,256 24,276 24,343 25,524 29,083 25,922 25,355 25,786 28,169 27,860 26,294
107 107 116 130 137 132 138 151 160 167 166 164
26,778 27,362 24,391 24,473 25,661 29,215 26,059 25,506 25,946 28,336 28,027 26,458
191,310 192,281 186,951 187,290 193,922 196,466 196,012 197,100 196,073 202,752 201,854 194,360
2007
January February March April May June July August September October November December
165,088 168,205 166,617 171,223 175,337 173,485 168,198 175,043 177,808 178,404 179,574 170,563
10,157 10,124 10,249 9,467 8,271 8,198 8,107 8,057 8,079 8,004 8,021 8,055
175,244 178,329 176,866 180,690 183,608 181,683 176,305 183,100 185,887 186,409 187,595 178,618
27,419 26,441 26,598 26,335 24,693 24,780 23,813 22,645 22,397 22,318 22,503 22,306
176 185 191 202 200 184 197 203 214 230 241 246
27,595 202,839 26,626 204,954 26,789 203,655 26,537 207,227 24,893 208,501 24,964 206,647 24,010 200,314 22,848 205,947 22,611 208,498 22,548 208,957 22,743 210,338 22,552 201,170
(1) Deflated by the combined price index. Source: ABA based on "Statistical Bulletin", Central Bank and INDEC.
42
ANNUAL REPORT 2007 Statistical Appendix
TABLE 14: Interest Rates
(Annual nominal, as a percentage) On Loans
On Deposits In Domestic Currency Period
Savings Accounts
Time Deposits (1)
In Foreign Currency Savings Accounts
Time Deposits (1)
Domestic Prime Rate In Domestic Currency
In Foreign Currency
30 days
30 days
90 days
Interbank Rate
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Average Average Average Average Average Average Average Average Average Average Average
3.7 3.5 3.3 3.0 2.9 2.8 3.2 6.4 1.3 0.7 0.8
12.5 7.6 7.2 7.8 8.5 8.7 17.4 46.9 10.8 2.8 3.9
2.7 2.6 2.5 2.4 2.5 2.7 3.4 2.0 0.9 0.1 0.1
8.4 6.3 6.0 6.5 6.5 7.2 9.9 3.9 0.8 0.4 0.5
19.1 10.9 9.5 11.0 11.4 11.5 32.4 66.6 20.7 6.9 6.2
14.6 9.4 8.0 9.2 9.3 10.0 18.9 22.4 ... ... ...
16.0 10.1 8.6 10.1 10.2 10.6 19.8 26.7 ... ... ...
9.7 6.3 6.8 6.9 7.1 8.4 29.9 47.7 3.9 2.0 4.1
2006
January February March April May June July August September October November December
0.9 0.8 0.9 0.8 0.8 0.8 0.8 0.8 0.9 0.8 0.8 0.8
5.6 5.7 6.1 6.2 6.7 6.6 7.0 7.1 7.0 7.2 7.3 7.0
0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
0.7 0.7 0.8 0.8 0.8 1.0 1.0 1.1 1.1 1.1 1.1 1.2
7.5 7.5 7.4 7.7 8.2 8.9 9.1 9.4 9.4 9.4 9.5 9.6
... ... ... ... ... ... ... ... ... ... ... ...
... ... ... ... ... ... ... ... ... ... ... ...
7.2 5.4 8.3 7.8 5.9 7.2 7.7 6.9 7.6 6.8 8.0 8.2
Average
0.8
6.7
0.1
0.9
8.8
...
...
7.4
January February March April May June July August September October November December
0.7 0.8 0.7 0.8 0.8 0.5 0.5 0.5 0.5 0.6 0.6 0.6
7.3 7.2 7.4 7.2 7.0 7.2 7.4 7.9 9.5 9.6 9.9 10.2
0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
1.3 1.2 1.3 1.2 1.3 1.4 1.4 1.5 1.5 1.5 1.5 1.5
9.5 9.4 8.5 8.7 8.6 8.7 8.8 10.2 13.3 14.8 15.7 16.0
... ... ... ... ... ... ... ... ... ... ... ...
... ... ... ... ... ... ... ... ... ... ... ...
6.9 6.8 7.8 7.3 7.6 8.0 10.3 10.7 10.9 9.0 10.3 9.4
Average
0.6
8.4
0.1
1.4
11.4
...
...
9.0
2007
(1) Corresponds to average term. Source: ABA based on "Survey on Interest Rates on Deposits", "Domestic Prime Rate" and "Statistical Information on Interest Rates", Central Bank.
43
ANNUAL REPORT 2007 Statistical Appendix
TABLE 15: Lending Rates in Pesos (Annual nominal, as a percentage) Period
Current Accounts Overdrafts
Promissory Notes
Mortgage Loans
Pledge Loans
Consumer + Credit Cards
Consumer Loans
Credit Cards Financing
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Average Average Average Average Average Average Average Average Average Average Average Average
34.7 41.6 32.7 28.2 28.8 30.6 30.0 40.4 60.3 37.7 15.7 14.9
19.6 20.0 13.3 11.1 11.6 12.1 12.2 28.0 38.8 17.7 10.8 10.3
16.3 15.4 12.4 13.2 14.3 14.4 15.0 15.3 29.4 18.0 12.0 11.3
24.2 26.3 22.2 18.9 20.5 20.6 21.4 21.1 19.1 19.7 13.3 10.3
37.1 44.8 40.7 38.2 34.7 32.7 33.0 34.3 51.0 54.3 30.4 27.3
... ... ... ... ... ... ... ... 40.7 45.9 29.7 25.9
... ... ... ... ... ... ... ... 51.4 54.8 30.7 27.7
2006
January February March April May June July August September October November December
17.3 16.7 17.7 17.3 16.1 16.5 16.2 16.1 16.1 16.3 16.4 16.5
11.5 12.1 12.2 12.5 13.0 12.6 12.9 13.0 13.0 12.7 12.9 12.9
11.5 11.4 11.3 11.9 11.8 12.0 12.0 11.4 11.5 11.9 11.6 11.7
8.8 9.1 9.5 10.4 10.3 10.0 9.3 9.6 9.8 10.3 10.6 11.1
27.5 27.3 26.1 26.2 26.7 26.4 27.4 27.1 25.7 26.0 25.8 25.5
25.5 25.8 24.5 24.0 24.3 23.8 24.6 24.8 24.3 25.4 24.8 24.6
28.1 27.7 26.7 26.9 27.6 27.4 28.5 28.2 26.4 26.3 26.2 25.9
Average
16.6
12.6
11.7
9.9
26.5
24.7
27.2
January February March April May June July August September October November December
16.3 16.1 15.4 14.9 16.3 15.5 18.1 17.8 19.1 18.9 19.3 18.9
12.6 12.6 12.7 12.8 12.2 12.2 13.2 14.0 16.0 16.4 17.1 17.0
11.2 10.9 10.8 11.3 10.7 10.5 10.7 10.8 11.4 11.6 11.9 12.4
8.3 9.2 10.7 10.6 10.4 10.3 10.1 9.8 11.7 13.3 15.1 15.5
25.7 25.5 25.6 25.7 25.6 25.4 26.0 26.0 26.2 26.7 26.3 27.5
24.9 24.8 25.1 25.5 25.3 25.0 24.7 25.1 26.3 27.1 27.0 27.7
26.0 25.8 25.8 25.8 25.7 25.5 26.6 26.4 26.1 26.5 26.0 27.5
Average
17.2
14.1
11.2
11.3
26.0
25.7
26.1
2007
It corresponds to weighted averages of loans granted within the month of the report. Source: ABA based on "Statistical Bulletin", Central Bank.
44
ANNUAL REPORT 2007 Statistical Appendix
TABLE 16: Lending Rates in Foreign Currency (Annual nominal, as a percentage) Period
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Average Average Average Average Average Average Average Average Average Average Average Average
2006
2007
Current Accounts Overdrafts
Promissory Notes
Mortgage Loans
Pledge Loans
Consumer + Credit Cards
Consumer Loans
Credit Cards Financing
19.2 22.0 13.3 13.5 13.0 10.9 9.5 20.8 22.0 10.6 5.0 5.1
13.4 17.4 12.0 10.9 11.1 12.1 12.5 19.6 12.5 7.7 5.1 5.1
15.1 16.7 14.0 12.5 12.2 13.0 12.6 12.4 11.5 4.3 9.1 9.2
17.2 19.1 16.3 15.3 14.1 14.6 15.5 16.6 7.4 13.7 11.4 11.3
19.9 23.9 22.5 21.8 21.2 23.1 24.1 26.1 31.5 28.8 20.6 18.9
... ... ... ... ... ... ... ... 21.5 ... ... ...
... ... ... ... ... ... ... ... 31.5 28.8 20.6 18.9
January February March April May June July August September October November December
5.5 5.3 5.3 5.4 4.8 5.3 5.3 5.6 5.6 5.7 5.7 5.9
4.8 5.3 5.1 5.1 4.9 5.2 5.3 5.5 5.4 5.4 5.3 5.5
10.7 10.5 12.1 9.2 11.6 11.6 11.2 11.2 10.7 10.6 9.7 10.0
8.5 9.5 12.9 9.6 8.1 8.8 8.4 8.2 8.3 9.4 ... ...
18.3 18.7 17.7 17.9 17.6 17.5 17.6 17.6 17.5 17.5 17.5 17.4
... ... ... ... ... ... ... ... ... ... ... ...
18.3 18.7 17.7 17.9 17.6 17.5 17.6 17.6 17.5 17.5 17.5 17.4
Average
5.4
5.2
10.8
9.2
17.7
...
17.7
January February March April May June July August September October November December
5.8 6.4 6.6 6.1 6.0 5.8 6.1 6.6 6.7 7.1 6.5 6.3
5.2 5.6 5.7 6.0 5.8 6.0 6.0 5.8 6.1 6.5 6.4 6.3
9.0 11.0 10.5 10.3 6.6 9.1 8.3 10.5 11.2 11.6 9.8 11.2
12.9 13.0 12.7 12.7 12.2 13.0 8.9 10.3 11.0 12.7 11.6 13.0
17.3 17.4 17.5 18.0 17.7 17.5 17.4 17.5 17.2 16.4 17.0 16.9
... ... ... ... ... ... ... ... ... ... ... ...
17.3 17.4 17.5 18.0 17.7 17.5 17.4 17.5 17.2 16.4 17.0 16.9
Average
6.3
6.0
9.9
12.0
17.3
...
17.3
It corresponds to weighted averages of loans granted within the month of the report. Source: ABA based on "Statistical Bulletin", Central Bank.
45
ANNUAL REPORT 2007 Statistical Appendix
TABLE 17: Number of Institutions End of:
December December December December December December December December December December December December December December December December December December December December December December December
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Public Banks
Private Banks
Non-Banking Financial Institutions
Total Financial System
37 37 36 36 36 36 35 36 34 33 31 24 19 16 16 14 13 16 15 14 13 12 12
161 154 142 139 141 134 134 131 133 135 96 96 95 86 76 75 72 62 60 59 58 60 55
117 105 89 69 59 51 50 44 39 37 30 26 25 23 24 24 22 21 21 18 18 18 18
315 296 267 244 236 221 219 211 206 205 157 146 139 125 116 113 107 99 96 91 89 90 85
Source: ABA based on Central Bank's data.
46
ANNUAL REPORT 2007 Statistical Appendix
TABLE 18: Employees Year
Public Banks
Private Banks
Total
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007(1)
79,714 78,973 78,346 79,409 80,710 81,200 80,380 80,581 81,680 82,666 75,710 67,706 58,984 56,169 56,127 53,483 48,434 40,696 40,041 40,042 39,986 38,302 44,289 40,903 39,499 38,442 37,788 38,191
66,426 63,106 62,543 65,496 67,877 63,788 60,741 57,880 61,171 64,365 57,876 54,375 58,464 62,660 65,126 56,331 57,384 62,557 63,571 61,976 60,597 57,971 60,318 40,928 43,433 46,763 51,387 55,194
146,140 142,079 140,889 144,905 148,587 144,988 141,121 138,461 142,851 147,031 133,586 122,081 117,448 118,829 121,253 109,814 105,818 103,253 103,612 102,018 100,583 96,273 104,607 81,831 82,932 85,205 89,175 93,385
(1) It corresponds to September. Source: ABA based on Central Bank's data.
47
ANNUAL REPORT 2007 Statistical Appendix
TABLE 19: Number of Accounts Period
Time Deposits
Savings Accounts
Current Accounts
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
December December December December December December December December December December December December December December December December
914,703 821,084 786,613 1,064,878 1,176,916 1,318,297 1,304,517 1,521,687 1,643,408 1,848,985 1,928,096 2,080,318 1,593,350 1,256,816 937,550 902,696
4,590,900 5,550,187 4,530,047 4,191,733 4,861,662 5,931,610 6,059,221 6,712,506 8,742,034 12,084,360 13,196,919 13,790,783 17,764,496 11,329,351 12,571,963 14,093,178
1,567,078 1,507,362 1,536,493 1,755,346 1,744,156 1,861,979 1,703,932 1,881,238 2,286,945 2,908,606 3,221,887 3,204,233 3,260,707 2,638,476 2,032,786 2,286,472
2005
March June September December
844,009 880,559 942,570 915,960
13,079,737 13,087,626 15,254,225 16,612,092
2,165,411 2,268,101 2,396,598 2,600,613
2006
March June September December
970,244 1,034,620 1,114,441 1,331,322
16,613,368 17,067,082 17,525,072 18,245,794
2,569,251 2,638,351 2,658,044 2,725,273
2007
March June September December
1,423,693 1,473,840 1,457,850 1,405,299
18,571,899 18,979,879 19,415,880 20,070,975
2,849,496 2,835,035 2,944,744 3,111,950
Source: ABA based on "Financial System Indicators", "Statistical Bulletin" and "Information on Financial Institutions", Central Bank.
48
ANNUAL REPORT 2007 Statistical Appendix
TABLE 20: Number of Branches (1) End of:
December December December December December June December December December December December December December December December December December December December November
1987 1988 1989 1990 1991 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Public Banks
Private Banks
Non-Banking Financial Institutions
Total Financial System
2,005 2,026 2,039 1,970 1,905 1,776 1,710 1,621 1,455 1,461 1,391 1,358 1,377 1,391 1,733 1,737 1,608 1,561 1,412 1,428
2,553 2,597 2,622 2,471 2,345 2,481 2,535 2,397 2,563 2,659 2,946 2,967 2,862 2,809 2,155 2,080 2,161 2,218 2,412 2,432
227 160 107 87 75 60 59 51 45 45 42 56 63 73 58 59 53 100 99 112
4,785 4,783 4,768 4,528 4,325 4,317 4,304 4,069 4,063 4,165 4,379 4,381 4,302 4,273 3,946 3,876 3,822 3,879 3,923 3,972
(1) Including head offices. Source: ABA based on Central Bank's data.
49
ANNUAL REPORT 2007 Statistical Appendix
TABLE 21: Branches Geographical Distribution (1) As of November 30, 2007 Provinces
Capital Federal Provinces Buenos Aires Catamarca Córdoba Corrientes Chaco Chubut Entre Ríos Formosa Jujuy La Pampa La Rioja Mendoza Misiones Neuquén Río Negro Salta San Juan San Luis Santa Cruz Santa Fe Santiago del Estero Tierra del Fuego Tucumán Total
Public Banks
Private Banks
Total Banking System
Non-Banking Financial Institutions
Total Financial System
163 1,265 513 14 223 40 43 48 25 5 5 95 12 35 14 46 20 9 7 6 11 70 8 11 5 1,428
588 1,844 665 6 167 20 17 29 92 13 23 11 13 100 48 23 42 39 25 32 27 356 36 48 12 2,432
751 3,109 1,178 20 390 60 60 77 117 18 28 106 25 135 62 69 62 48 32 38 38 426 44 59 17 3,860
23 89 52 1 5 1 2 0 1 0 2 0 1 5 2 1 0 3 3 3 0 5 1 1 0 112
774 3,198 1,230 21 395 61 62 77 118 18 30 106 26 140 64 70 62 51 35 41 38 431 45 60 17 3,972
(1) Including head offices. Source: ABA based on "Information on Financial Institutions", Central Bank.
50
ANNUAL REPORT 2007 Statistical Appendix
TABLE 22: ATMs Geographical Distribution As of November 30, 2007 Provinces
Capital Federal Provinces Buenos Aires Catamarca Córdoba Corrientes Chaco Chubut Entre Ríos Formosa Jujuy La Pampa La Rioja Mendoza Misiones Neuquén Río Negro Salta San Juan San Luis Santa Cruz Santa Fe Santiago del Estero Tierra del Fuego Tucumán Total
Public Banks
Private Banks
Total Banking System
Non-Banking Financial Institutions
Total Financial System
384 1,779 924 38 235 63 66 46 19 4 4 42 5 57 14 86 24 15 8 7 10 70 3 10 29 2,163
1,617 4,457 1,898 12 308 45 33 67 180 58 93 14 31 242 98 55 109 124 88 64 74 575 88 176 25 6,074
2,001 6,236 2,822 50 543 108 99 113 199 62 97 56 36 299 112 141 133 139 96 71 84 645 91 186 54 8,237
3 40 3 0 1 1 0 0 0 0 3 0 0 2 0 0 0 29 0 1 0 0 0 0 0 43
2,004 6,276 2,825 50 544 109 99 113 199 62 100 56 36 301 112 141 133 168 96 72 84 645 91 186 54 8,280
Source: ABA based on "Information on Financial Institutions", Central Bank.
51
ANNUAL REPORT 2007 Statistical Appendix
TABLE 23: Assets and Liabilities Structure Item
December 2004 In Millions of Pesos
Assets
%
December 2005 In Millions of Pesos
%
December 2006 In Millions of Pesos
%
November 2007 In Millions of Pesos
%
212,562
100.0
221,962
100.0
258,384
100.0
297,406
100.0
26,997 55,769 66,117 41,054 1,697 30,866 -7,500
12.7 26.2 31.1 19.3 0.8 14.5 -3.5
18,933 67,122 79,241 55,885 2,450 25,836 -4,930
8.5 30.2 35.7 25.2 1.1 11.6 -2.2
36,001 65,405 99,940 77,832 4,962 20,874 -3,728
13.9 25.3 38.7 30.1 1.9 8.1 -1.4
40,450 67,955 124,467 106,283 5,268 16,884 -3,969
13.6 22.8 41.9 35.7 1.8 5.7 -1.3
34,711 6,259 22,710
16.3 2.9 10.7
28,607 6,141 21,918
12.9 2.8 9.9
28,030 6,174 22,835
10.8 2.4 8.8
34,063 6,157 24,315
11.5 2.1 8.2
Liabilities
188,683
88.8
195,044
87.9
225,369
87.2
261,204
87.8
Deposits Non-financial private sector Financial sector Public sector Other obligations through financial intermediation Others
116,655 84,266 670 31,720
54.9 39.6 0.3 14.9
136,492 101,647 737 34,108
61.5 45.8 0.3 15.4
170,898 124,345 944 45,610
66.1 48.1 0.4 17.7
204,233 150,918 1,275 52,040
68.7 50.7 0.4 17.5
64,928 7,100
30.5 3.3
52,072 6,480
23.5 2.9
46,037 8,434
17.8 3.3
47,931 9,039
16.1 3.0
23,879
11.2
26,918
12.1
33,015
12.8
36,203
12.2
Cash and due from banks Public bonds Loans Non-financial private sector Financial sector Public sector Provisions Other credits through financial intermediation Fixed assets Others
Stockholder’s Equity
Source: ABA based on "Information on Financial Institutions", Central Bank.
52
ANNUAL REPORT 2007 Statistical Appendix
TABLE 24: Terms for Assets and Liabilities As of November 30, 2007 (in millions of pesos) Assets
Due Portfolio
1 Month
3 Months
6 Months
12 Months
24 Months
More than 24 Months
Total
Public Sector Loans Financial System Non-financial Private Sector and Foreign Residents Liquid Assets Public Bonds
54 307
1,520 4,722
69 668
498 622
1,086 1,297
2,697 973
12,054 600
17,978 9,189
3,984 ... 249
40,496 40,450 ...
16,451 ... 33,544
15,090 ... 9,977
11,884 ... 16,877
14,154 ... 32,524
32,851 ... 54,911
34,911 40,450 67,955
Total
4,595
87,188
50,731
26,188
31,143
50,349
100,416
270,482
Liabilities
1 Month
3 Months
6 Months
12 Months
24 Months
More than 24 Months
Total
Deposits Demand Deposits Others Other Financial Intermediation Obligations Central Bank International Banks and Institutions Unsubordinated Notes Financing Received by Local Financial Institutions Others
117,326 52,800 64,527
21,080 ... 21,080
8,571 ... 8,571
3,625 ... 3,625
752 ... 752
52,879 52,800 79
204,233 105,600 98,634
12 179 201
1 212 99
1 154 231
2 398 263
3 801 49
6 061 833
55 223
41 289
57 172
8 246
14 1,908
51 4,409
262,463 1 226 7,247
4,070 7,674
724 59
755 94
1,457 155
954 72
436 332
8,395 8,385
4
16
34
51
93
1,466
1,664
129,531
22,307
9,836
5,939
4,594
60,406
232,614
Subordinated Notes Total
Source: ABA based on "Information on Financial Institutions", Central Bank.
53
ANNUAL REPORT 2007 Statistical Appendix
TABLE 25: Terms for Assets and Liabilities As of November 30, 2007 (as % of liabilities) Assets
1 Month
Public Sector Loans Financial System Non-financial Private Sector and Foreign Residents Liquid Assets Public Bonds
0.0 0.1
0.7 2.0
0.0 0.3
0.2 0.3
0.5 0.6
1.2 0.4
1.7 ... 0.1
17.4 17.4 ...
7.1 ... 14.4
6.5 ... 4.3
5.1 ... 7.3
6.1 ... 14.0
14.1 ... 23.6
58.0 17.4 29.2
Total
2.0
37.5
21.8
11.3
13.4
21.6
43.2
116.3
6 Months
12 Months
24 Months
More than 24 Months 22.7 22.7 0.0 2.6 0.4 0.0 1.9
Total
1 Month
3 Months
3 Months
6 Months
12 Months
24 Months
Total
More than 24 Months 5.2 0.3
Liabilities
Due Portfolio
7.7 4.0
Deposits Demand Deposits Others Other Financial Intermediation Obligations Central Bank International Banks and Institutions Unsubordinated Notes Financing Received by Local Financial Institutions Others Subordinated Notes
50.4 22.7 27.7 5.2 0.1 0.0 0.1
9.1 ... 9.1 0.5 0.0 0.0 0.1
3.7 ... 3.7 0.5 0.1 0.0 0.1
1.6 ... 1.6 1.0 0.2 0.0 0.1
0.3 ... 0.3 1.6 0.3 0.0 0.8
1.7 3.3 0.0
0.3 0.0 0.0
0.3 0.0 0.0
0.6 0.1 0.0
0.4 0.0 0.0
0.2 0.1 0.6
3.6 3.6 0.7
Total
55.7
9.6
4.2
2.6
2.0
26.0
100.0
0.7
2.3
2.7
5.2
11.0
1.7
1.2
Assets / Liabilities Relation
87.8 45.4 42.4 11.5 1.1 0.1 3.1
Source: ABA based on "Information on Financial Institutions", Central Bank.
54
ANNUAL REPORT 2007 Statistical Appendix
TABLE 26: Terms for Assets and Liabilities
As of November 30, 2007 (Percentage Term Structure) Assets
Public Sector Loans Financial System Non-financial Private Sector and Foreign Residents Liquid Assets Public Bonds
0.3 3.3
8.5 51.4
0.4 7.3
2.8 6.8
6.0 14.1
15.0 10.6
3.0 ... 0.4
30.0 100.0
...
12.2 ... 49.4
11.2 ... 14.7
8.8 ... 24.8
10.5 ... 47.9
24.4 ... 80.8
100.0 100.0 100.0
Total
1.7
32.2
18.8
9.7
11.5
18.6
37.1
100.0 Total
Deposits Demand Deposits Others Other Financial Intermediation Obligations Central Bank International Banks and Institutions Unsubordinated Notes Financing Received by Local Financial Institutions Others Subordinated Notes Total
1 Month
1 Month
3 Months
3 Months
6 Months
6 Months
12 Months
12 Months
24 Months
Total
More than 24 Months 67.0 6.5
Liabilities
Due Portfolio
24 Months
100.0 100.0
57.4 50.0 65.4
10.3 ... 21.4
4.2 ... 8.7
1.8 ... 3.7
0.4 ... 0.8
More than 24 Months 25.9 50.0 0.1
45.7 7.3 24.2 3.1
4.5 4.0 18.2 4.0
4.6 6.2 25.3 2.4
8.5 16.2 3.4 3.4
14.0 32.5 6.3 26.3
22.7 33.8 22.5 60.8
100.0 100.0 100.0 100.0
48.5 91.5
8.6 0.7
9.0 1.1
17.3 1.8
11.4 0.9
5.2 4.0
100.0 100.0
0.2
0.9
2.1
3.1
5.6
88.1
100.0
55.7
9.6
4.2
2.6
2.0
26.0
100.0
100.0 100.0 100.0
Source: ABA based on "Information on Financial Institutions", Central Bank.
55
ANNUAL REPORT 2007 Statistical Appendix
TABLE 27: Loans and Deposits (in millions of pesos) Period
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
December December December December December December December December December December December December December December December December December November
Loans Public Banks
Private Banks
9,557 19,952 18,409 21,543 23,286 23,580 22,255 23,379 25,153 22,060 21,700 20,388 28,429 17,529 19,096 24,472 30,211 36,262
4,984 11,415 21,713 25,433 32,614 31,702 38,312 45,590 50,402 53,732 52,707 48,291 43,958 40,647 46,155 53,326 67,066 84,331
NonBanking Financial Institutions 86 279 599 722 860 666 781 1,022 1,524 1,907 1,745 1,494 453 492 866 1,444 2,663 3,874
Deposits Total Financial System
Public Banks
Private Banks
14,627 31,646 40,721 47,698 56,759 55,948 61,347 69,991 77,080 77,699 76,152 70,173 72,840 58,668 66,117 79,241 99,940 124,467
7,462 6,793 10,547 17,324 18,562 17,730 19,789 24,023 27,254 26,946 28,498 21,454 32,851 44,732 55,680 61,708 76,307 89,303
3,414 9,300 16,013 23,347 28,521 27,178 34,631 46,169 50,676 54,275 57,679 44,767 41,954 49,687 60,765 74,495 94,095 114,162
NonBanking Financial Institutions 60 223 451 490 588 324 371 336 390 352 393 226 196 216 211 289 496 768
Total Financial System
10,936 16,316 27,011 41,162 47,670 45,233 54,791 70,527 78,320 81,573 86,570 66,447 75,001 94,635 116,655 136,492 170,898 204,233
Source: ABA based on "Statements of Financial Institutions", "Financial Statements of Financial Institutions" and "Information on Financial Institutions", Central Bank.
56
ANNUAL REPORT 2007 Statistical Appendix
TABLE 28: Loans and Deposits (as a percentage) Period
Loans Public Banks
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
December December December December December December December December December December December December December December December December December November
65.3 63.0 45.2 45.2 41.0 42.1 36.3 33.4 32.6 28.4 28.5 29.1 39.0 29.9 28.9 30.9 30.2 29.1
Deposits
Private Banks
NonBanking Financial Institutions
Total Financial System
Public Banks
34.1 36.1 53.3 53.3 57.5 56.7 62.5 65.1 65.4 69.2 69.2 68.8 60.3 69.3 69.8 67.3 67.1 67.8
0.6 0.9 1.5 1.5 1.5 1.2 1.3 1.5 2.0 2.5 2.3 2.1 0.6 0.8 1.3 1.8 2.7 3.1
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
68.2 41.6 39.0 42.1 38.9 39.2 36.1 34.1 34.8 33.0 32.9 32.3 43.8 47.3 47.7 45.2 44.7 43.7
Private Banks
31.2 57.0 59.3 56.7 59.8 60.1 63.2 65.5 64.7 66.5 66.6 67.4 55.9 52.5 52.1 54.6 55.1 55.9
NonBanking Financial Institutions
Total Financial System
0.5 1.4 1.7 1.2 1.2 0.7 0.7 0.5 0.5 0.4 0.5 0.3 0.3 0.2 0.2 0.2 0.3 0.4
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Source: ABA based on "Statements of Financial Institutions", "Financial Statements of Financial Institutions" and "Information on Financial Institutions", Central Bank.
57
ANNUAL REPORT 2007 Statistical Appendix
TABLE 29: Information by Group of Institutions October 2007 (in millions of pesos) Group
Public Federal Banks Public Provincial and Municipal
Assets
70,083
Stockholders' Equity
Loans to Private Sector (1)
7,873
10,149
Deposits of Private Sector 19,928
48,356
4,037
13,847
24,718
118,438
11,911
23,997
44,646
80,148 82,456
9,008 13,041
36,075 32,012
54,985 40,544
7,835
766
3,580
6,618
Private Banks
170,439
22,816
71,667
102,146
Banks Total
288,877
34,726
95,664
146,792
4,865
1,288
3,677
717
293,742
36,014
99,340
147,510
Public Banks International Banks Local Private Cooperatives
Non-Banking Financial Institutions Total Financial System
(1) Net of provisions. Source: ABA based on "Information on Financial Institutions", Central Bank.
58
ANNUAL REPORT 2007 Statistical Appendix
TABLE 30: Information by Group of Institutions October 2007 (as a percentage) Group
Public Federal Banks
Assets
Stockholders' Equity
Loans to Private Sector (1)
23.9
21.9
Public Provincial and Municipal
16.5
11.2
13.9
16.8
Public Banks
40.3
33.1
24.2
30.3
International Banks
27.3
25.0
36.3
37.3
Local Private
28.1
36.2
32.2
27.5
Cooperatives
2.7
2.1
3.6
4.5
Private Banks
58.0
63.4
72.1
69.2
Banks Total
98.3
96.4
96.3
99.5
1.7
3.6
3.7
0.5
100.0
100.0
100.0
100.0
Non-Banking Financial Institutions Total Financial System
10.2
Deposits of Private Sector 13.5
(1) Net of provisions. Source: ABA based on "Information on Financial Institutions", Central Bank.
59
ANNUAL REPORT 2007 Statistical Appendix
TABLE 31: Income Statement - Financial System (As a percentage of net assets)
Financial margin Interest income CER and CVS return Assets return Differences in valuation Other financial income Net income on services Non-collectibility expenses Operating expenses Tax burdens Income tax Adjustments on Public Debt valuation (1) Judicial Injunctions Amortization Miscellaneous Monetary adjustments Total Return Adjusted Return (2) ROE
2000
2001
5.7 4.0 0.0 0.1 1.2 0.4 2.8 -2.4 -5.8 -0.4 -0.3 0.0 0.0 0.4 0.0 0.0 0.0 0.0
5.7 3.8 0.0 0.2 1.2 0.5 3.0 -2.6 -6.1 -0.5 -0.2 0.0 0.0 0.6 0.0 0.0 0.0 -0.2
2002 6.5 -1.7 3.9 2.8 1.7 -0.1 1.9 -4.7 -4.4 -0.3 -0.2 0.0 0.0 -1.8 -5.8 -8.9 -8.9 -59.2
2003 1.1 -0.5 1.3 -0.5 1.1 -0.3 1.9 -1.1 -4.2 -0.3 -0.2 -0.4 -0.6 0.9 0.0 -2.9 -1.9 -22.7
2004
2005
3.1 0.9 1.0 0.4 1.0 -0.2 2.0 -0.8 -4.1 -0.3 -0.1 -0.2 -0.9 0.8 0.0 -0.5 0.7 -4.2
4.6 1.5 1.5 0.4 1.2 0.1 2.3 -0.6 -4.6 -0.4 -0.3 -0.2 -0.9 0.8 0.0 0.9 2.0 7.0
2006 5.8 1.8 1.3 0.4 2.2 0.1 2.7 -0.5 -5.1 -0.5 -0.3 -0.3 -1.1 1.2 0.0 1.9 3.4 14.3
2007 5.7 2.2 1.0 0.5 1.9 0.1 3.1 -0.7 -5.5 -0.6 -0.4 -0.3 -0.7 0.9 0.0 1.5 2.5 11.1
(1) Communication "A" 3911. Valuation adjustments according to Communication "A" 4084 are included in "Assets Return". (2) Judicial injunctions amortization and Public Sector revaluation are not included. Source: "Report on Banks", Central Bank.
60
ANNUAL REPORT 2007 Statistical Appendix
TABLE 32: Ratios - Financial System (as a percentage)
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
1 - Liquidity 2 - Credit to Public Sector
22.3 16.9
26.1 16.2
23.1 16.2
25.0 18.0
23.4 17.3
19.6 23.0
22.8 48.5
29.1 46.5
29.6 39.6
20.1 30.8
22.5 21.6
23.0 15.8
3 - Loans to Private Sector
50.8
47.7
48.4
44.9
39.9
42.7
20.8
18.1
19.6
25.8
31.0
38.2
4 - Private Sector Nonperforming Loans
16.2
13.8
12.2
14.0
16.0
19.1
38.6
33.5
18.6
7.6
4.5
3.2
5 - Capital Exposure to Private Sector 6 - ROA 7 - ROE
24.9 0.6 4.1
22.5 1.0 6.3
20.6 0.5 3.9
24.7 0.2 1.7
26.2 0.0 0.0
21.9 0.0 -0.2
17.3 -8.9 -59.2
12.4 -2.9 -22.7
-1.0 -0.5 -4.2
-4.1 0.9 7.0
-3.3 1.9 14.3
-3.0 1.5 11.1
142.0
136.0
138.0
142.0
147.0
143.0
189.0
151.0 167.0
160.0
9 - Capital Requirement Compliance
23.8
20.8
20.3
21.0
20.1
21.4
...
10 - Excess of Minimun Capital Requirement
64.0
73.0
49.0
54.0
58.0
54.0
...
8 - Efficiency
69.0 125.0 14.5
14.0
15.3
16.8
16.8
116.0 185.0
173.0
134.0
90.0
1 - (Liquid assets in Central Bank + Other liquids assets + LEBAC/NOBAC from repos) / Total deposits. 2 - (Public bonds (LEBAC/NOBAC not included) + Loans to Public Sector + Compensations) / Net Asset. 3 - Loans to Private Sector / Net Asset. 4 - Private Sector Non-performing loans / Loans to Private Sector. 5 - (Non-performing - provisions) / Equity. Non-performing includes categories 3 to 6. 6 - Total Return / Net Assets. 7 - Total Return / Equity. 8 - (Financial Margin (Net interest income + CER/CVS Return + Other assets return + Difference on valuation + Other financial return) + Net Non-interest income) / Operating expenses. 9 - Minimum capital requirement compliance / Risk weighted assets (according to Central Bank regulations). 10 - (Minimum capital compliance - requirement (considering forbearances) / Requirement. Source: "Report on Banks", Central Bank.
61
ANNUAL REPORT 2007 Statistical Appendix
TABLE 33: Non-Performing Loans - Financial System As a percentage
Dec. 2000
Dec. 2001
Dec. 2002
Dec. 2003
Dec. 2004
Dec. 2005
Dec. 2006
Dec. 2007
Non-performing Loans
12.9
13.1
18.1
17.7
10.7
5.2
3.4
2.7
Non-performing - Private Sector
16.0
19.1
38.6
33.5
18.6
7.6
4.5
3.2
Commercial Loans
14.9
20.7
44.0
38.0
22.8
9.3
5.5
3.4
Consumer and Mortgage
17.3
17.5
31.4
28.0
11.0
4.8
3.5
3.4
Provisions / Non-performing Loans
61.1
66.4
73.8
79.2
102.9
125.1
130.3
129.7
(Non-performing Loans - Provisions) / Total Financing
5.0
4.4
4.7
3.7
-0.3
-1.3
-1.0
-0.8
(Non-performing Loans - Provisions) / Equity
26.2
21.6
17.2
11.9
-1.0
-4.1
-3.3
-3.0
Source: "Report on Banks", Central Bank.
62
ANNUAL REPORT 2007 Statistical Appendix
TABLE 34: Income Statement - Private Banks (As a percentage of net assets)
2000
2001
2002
2003
2004
2005
2006
2007
Financial margin Interest income CER and CVS return Assets return Differences in valuation Other financial income Net income on services Non-collectibility expenses Operating expenses Tax burdens Income tax Adjustments on Public Debt valuation (1) Judicial Injunctions Amortization Miscellaneous Monetary adjustments Total Return Adjusted Return (2)
6.2 4.1 0.0 0.2 1.4 0.5 2.9 -2.5 -6.0 -0.4 -0.4 0.0 0.0 0.4 0.0 0.1 0.1
6.4 4.3 0.0 0.3 1.2 0.7 3.2 -3.0 -6.4 -0.5 -0.3 0.0 0.0 0.7 0.0 0.2 0.2
7.6 -0.2 1.1 4.4 2.5 -0.1 2.0 -5.0 -4.8 -0.4 -0.2 0.0 0.0 -3.0 -7.5 -11.3 -11.3
2.3 0.1 0.9 -0.3 1.7 -0.2 2.0 -1.3 -4.6 -0.3 -0.3 -0.6 -0.7 1.0 0.0 -2.5 -1.2
2.9 1.0 0.8 0.6 0.8 -0.3 2.4 -0.9 -4.6 -0.3 -0.2 0.0 -1.0 0.7 0.0 -1.0 0.2
4.3 1.7 1.0 0.5 1.0 0.1 2.7 -0.6 -5.1 -0.4 -0.2 -0.2 -1.0 0.9 0.0 0.5 1.6
5.9 2.1 0.6 0.6 2.4 0.2 3.4 -0.6 -5.9 -0.6 -0.3 -0.1 -0.9 1.2 0.0 2.2 3.2
5.8 2.7 0.4 0.6 1.9 0.1 3.8 -0.8 -6.3 -0.7 -0.2 -0.1 -0.9 1.0 0.0 1.6 2.6
ROE
0.8
1.4
-79.0
-19.1
-8.1
4.1
15.3
11.0
(1) Communication "A" 3911. Valuation adjustments according to Communication "A" 4084 are included in "Assets Return". (2) Judicial injunctions amortization and Public Sector revaluation are not included. Source: "Report on Banks", Central Bank.
63
ANNUAL REPORT 2007 Statistical Appendix
TABLE 35: Ratios - Private Banks (as a percentage)
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
1 - Liquidity
23.6
26.9
22.8
24.3
24.1
23.6
24.8
27.6
29.2
21.5
23.7
25.7
2 - Credit to Public Sector
13.5
13.7
13.6
16.1
14.7
20.8
49.4
47.1
41.2
28.0
15.9
9.1
3 - Loans to Private Sector
51.0
46.7
47.6
44.6
38.4
45.4
22.4
19.9
22.5
31.1
37.9
46.6
4 - Private Sector Non-performing Loans
11.1
8.5
7.7
8.9
9.8
14.0
37.4
30.4
15.3
6.3
3.6
2.5
21.6
14.3
13.2
11.5
13.4
11.4
18.6
11.2
1.9
-2.2
-3.0
-3.6
6 - ROA
0.6
0.7
0.5
0.3
0.1
0.2
-11.3
-2.5
-1.0
0.5
2.2
1.6
7 - ROE
4.1
6.3
4.3
2.3
0.8
1.4
-79.0
-19.1
-8.1
4.1
15.3
11.0
144.0
135.0
139.0
146.0
152.0
151.0
168.0
93.0
115.0
136.0 158.0
153.0
15.9
15.4
14.6
18.9
18.0
17.6
...
14.0
15.1
33.0
47.0
27.0
60.0
49.0
43.0
...
88.0
157.0
5 - Capital Exposure to Private Sector
8 - Efficiency 9 - Capital Requirement Compliance 10 - Excess of Minimun Capital Requirement
17.8 155.0
18.6
19.3
116.0
87.0
1 - (Liquid assets in Central Bank + Other liquids assets + LEBAC/NOBAC from repos) / Total deposits. 2 - (Public bonds (LEBAC/NOBAC not included) + Loans to Public Sector + Compensations) / Net Asset. 3 - Loans to Private Sector / Net Asset. 4 - Private Sector Non-performing loans / Loans to Private Sector. 5 - (Non-performing - provisions) / Equity. Non-performing includes categories 3 to 6. 6 - Total Return / Net Assets. 7 - Total Return / Equity. 8 - (Financial Margin (Net interest income + CER/CVS Return + Other assets return + Difference on valuation + Other financial return) + Net Non-interest income) / Operating expenses. 9 - Minimum capital requirement compliance / Risk weighted assets (according to Central Bank regulations). 10 - Minimum capital compliance - requirement (considering forbearances) / Requirement.. Source: "Report on Banks", Central Bank.
64
ANNUAL REPORT 2007 Statistical Appendix
TABLE 36: Non-Performing Loans - Private Banks As a percentage
Dec. 2000
Dec. 2001
Dec. 2002
Dec. 2003
Dec. 2004
Dec. 2005
Dec. 2006
Dec. 2007
Non-performing Loans
8.3
9.9
19.8
15.7
8.9
4.4
2.9
2.2
Non-performing - Private Sector
9.8
14.0
37.4
30.4
15.3
6.3
3.6
2.5
Commercial Loans
8.4
15.4
44.7
39.0
18.2
7.3
4.3
2.3
Consumer and Mortgage
11.9
12.4
26.0
17.2
10.0
4.2
3.2
3.2
Provisions / Non-performing Loans
67.7
75.7
73.4
79.0
95.7
114.6
129.6
141.5
2.7
2.4
5.3
3.3
0.4
-0.6
-0.9
-0.9
13.4
11.4
18.6
11.2
1.3
-2.2
-3.0
-3.6
(Non-performing Loans - Provisions) / Total Financing (Non-performing Loans - Provisions) / Equity Source: "Report on Banks", Central Bank.
65
ANNUAL REPORT 2007 Statistical Appendix
TABLE 37: Concentration of Deposits (as a percentage) End of: 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
December December December December December December December December December December December December December December December December December December December November
Top 5
Top 10
Top 15
Top 20
Others
Number of Banks
37.11 35.96 36.17 35.63 34.96 38.68 36.85 42.61 42.33 45.18 48.91 50.26 52.33 49.92 54.16 55.65 55.16 54.52 55.95 55.38
50.72 49.76 49.39 49.78 48.62 51.69 50.18 58.21 58.40 61.62 70.51 71.74 73.18 73.42 77.04 75.49 73.72 72.80 73.73 75.96
… … … … … 60.56 58.73 68.13 68.76 71.43 79.54 80.37 82.77 83.66 85.31 85.17 85.02 84.16 84.53 86.68
65.34 67.46 65.63 67.68 66.25 66.77 65.14 74.34 75.25 78.30 84.46 85.87 88.55 89.51 90.25 90.31 89.99 89.32 89.47 91.20
34.66 32.54 34.37 32.32 33.75 33.23 34.86 25.66 24.75 21.70 15.54 14.13 11.45 10.49 9.75 9.69 10.01 10.68 10.53 8.80
175 176 170 166 167 167 168 127 120 113 104 92 89 85 78 75 73 71 72 72
Source: ABA based on "Statements of Financial Institutions", "Financial Statements of Financial Institutions" and "Information on Financial Institutions", Central Bank.
66
ANNUAL REPORT 2007 Statistical Appendix
TABLE 38: Concentration of Assets (as a percentage) End of: 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
December December December December December December December December December December December December December December November
Top 5
Top 10
Top 15
Top 20
Others
Number of Banks
38.19 36.43 39.88 38.71 40.89 42.82 45.64 45.63 48.71 57.16 57.85 55.64 54.80 52.23 51.54
51.28 50.57 55.18 55.67 57.73 64.03 68.20 69.35 70.90 77.72 76.89 73.44 71.59 69.85 71.48
59.73 58.83 64.00 66.37 67.64 73.56 77.44 79.00 80.97 86.10 85.12 83.75 82.19 80.64 82.87
65.71 64.89 69.29 72.38 74.05 80.03 83.23 85.09 87.01 90.38 89.90 88.96 87.54 86.61 87.98
34.29 35.11 30.71 27.62 25.95 19.97 16.77 14.91 12.99 9.62 10.10 11.04 12.46 13.39 12.02
167 168 127 120 113 104 92 89 85 78 75 73 71 72 72
Source: ABA based on "Statements of Financial Institutions", "Financial Statements of Financial Institutions" and "Information on Financial Institutions", Central Bank.
67
ANNUAL REPORT 2007 Statistical Appendix
TABLE 39: Trenches of Deposits As of September 30, 2007 Trenches
From
Individual To
Number
Amount
Legal Persons Number
In Millions of Pesos 0 301 501 1,001 2,501 5,001 10,001 25,001 50,001 100,001 250,001 500,001 1,000,001 2,500,001 5,000,001 10,000,001 25,000,001 50,000,001 100,000,001 Total
300 500 1,000 2,500 5,000 10,000 25,000 50,000 100,000 250,000 500,000 1,000,000 2,500,000 5,000,000 10,000,000 25,000,000 50,000,000 100,000,000
Amount
Total Number
In Millions of Pesos
Amount In Millions of Pesos
12,714,909 784,807 1,244,836 1,935,730 1,224,691 1,013,172 952,434 402,928 200,594 85,993 16,931 5,019 1,838 371 102 36 3 5 3
398 302 885 3,020 4,082 6,527 13,572 12,253 11,909 10,723 4,714 2,653 2,040 938 564 467 92 93 204
792,087 102,214 133,611 170,885 107,014 96,149 111,450 70,729 55,862 48,629 21,830 13,032 10,093 3,950 2,496 1,285 586 237 220
43 29 71 201 270 491 1,301 1,842 2,888 5,466 5,628 6,172 10,080 8,654 9,406 11,484 9,203 9,932 31,100
13,506,996 887,021 1,378,447 2,106,615 1,331,705 1,109,321 1,063,884 473,657 256,456 134,622 38,761 18,051 11,931 4,321 2,598 1,321 589 242 223
441 331 956 3,220 4,352 7,019 14,872 14,094 14,797 16,190 10,342 8,826 12,120 9,592 9,970 11,951 9,296 10,024 31,304
20,584,402
75,434
1,742,359
114,263
22,326,761
189,696
Source: ABA based on "Information on Financial Institutions", Central Bank.
68
ANNUAL REPORT 2007 Statistical Appendix
TABLE 40: Deposits of Private Sector Geographical Distribution
Provinces
Total Capital Federal Buenos Aires Great Buenos Aires Rest of Buenos Aires Catamarca Córdoba Corrientes Chaco Chubut Entre Ríos Formosa Jujuy La Pampa La Rioja Mendoza Misiones Neuquén Río Negro Salta San Juan San Luis Santa Cruz Santa Fe Santiago del Estero Tierra del Fuego Tucumán
III Q 2006
III Q 2007
Change
In Millions of Pesos 115,330.0 144,022.6 28,692.5 56,722.7 69,290.3 12,567.6 25,784.3 32,363.9 6,579.6 13,026.3 16,475.1 3,448.7 12,758.0 15,888.9 3,130.9 240.8 325.3 84.5 7,544.1 9,531.5 1,987.4 766.9 974.0 207.1 971.8 1,150.8 179.0 1,235.7 1,725.7 490.0 1,780.5 2,215.9 435.4 185.0 276.7 91.7 584.1 747.1 163.0 806.5 966.7 160.2 221.7 288.2 66.6 3,255.0 4,165.4 910.4 713.3 921.2 207.9 1,118.3 1,499.5 381.1 1,091.2 1,373.5 282.3 990.9 1,414.1 423.1 813.7 993.6 179.8 449.4 547.6 98.2 529.0 886.3 357.3 7,048.3 9,182.2 2,133.9 575.8 739.8 164.1 462.8 647.8 185.0 1,438.4 1,795.5 357.0
Change
Share %
24.9 22.2 25.5 26.5 24.5 35.1 26.3 27.0 18.4 39.7 24.5 49.6 27.9 19.9 30.0 28.0 29.2 34.1 25.9 42.7 22.1 21.9 67.6 30.3 28.5 40.0 24.8
100.0 48.1 22.5 11.4 11.0 0.2 6.6 0.7 0.8 1.2 1.5 0.2 0.5 0.7 0.2 2.9 0.6 1.0 1.0 1.0 0.7 0.4 0.6 6.4 0.5 0.4 1.2
Source: ABA based on "Statistical Bulletin", Central Bank.
69
ANNUAL REPORT 2007 Statistical Appendix
TABLE 41: Loans by Type Type of Loan
December 2004 Millions of Pesos
Public Sector
%
December 2005
December 2006
November 2007
Millions of Pesos
%
Millions of Pesos
%
Millions of Pesos
%
30,866
46.7
25,836
32.6
20,874
20.9
16,884
13.6
Financial Sector
1,697
2.6
2,450
3.1
4,962
5.0
5,268
4.2
Private Sector (1)
41,054
62.1
55,885
70.5
77,832
77.9
106,283
85.4
Overdraft
5,883
8.9
8,344
10.5
11,012
11.0
13,834
11.1
Promissory Notes
8,209
12.4
12,844
16.2
17,220
17.2
22,332
17.9
Mortgage Loans
8,844
13.4
8,865
11.2
10,345
10.4
14,245
11.4
Pledge Loans
1,688
2.6
2,372
3.0
3,824
3.8
5,865
4.7
Consumer Loans
4,081
6.2
7,135
9.0
12,716
12.7
20,138
16.2
10,224
15.5
14,589
18.4
20,954
21.0
27,821
22.4
2,125
3.2
1,736
2.2
1,760
1.8
2,048
1.6
-7,500
-11.3
-4,930
-6.2
-3,728
-3.7
-3,969
-3.2
66,117
100.0
79,241
100.0
99,940
100.0
124,467
100.0
Others Interest Accrued Provisions Total
(1) It includes loans to foreign residents. Source: ABA based on "Information on Financial Institutions", Central Bank.
70
ANNUAL REPORT 2007 Statistical Appendix
TABLE 42: Financing by Activity As a percentage
Primary Production 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
9.0 11.1 12.6 12.4 10.8 10.3 9.2 9.1 9.1 8.1 8.9 8.2 5.7 6.6 7.8 10.4 10.8 11.3
Manufacturing Industry
Electricity, Gas and Water
23.9 20.8 20.6 19.5 18.0 18.5 19.4 18.1 16.5 14.6 11.5 9.3 7.7 8.8 12.6 16.2 16.7 16.7
7.4 3.0 1.3 2.5 2.0 2.1 2.1 2.0 2.2 1.8 1.6 1.5 2.2 1.2 1.1 0.9 1.2 1.0
Construction Commerce
5.9 6.4 5.1 4.2 4.2 4.3 4.1 3.5 3.6 3.7 3.5 3.0 2.5 2.2 2.4 2.3 2.2 2.2
6.6 11.4 15.1 17.0 15.7 13.9 12.3 11.6 10.5 9.8 8.7 6.3 4.3 4.5 5.2 6.2 6.9 7.2
Services
23.3 21.5 20.1 21.5 23.6 25.0 26.8 27.1 26.5 28.0 37.7 42.2 54.6 52.0 46.4 36.5 32.3 28.2
Individual Employees 21.7 22.6 20.7 18.1 20.2 20.2 21.7 23.9 24.9 28.3 24.8 24.1 16.6 16.4 16.6 23.4 26.0 29.7
NonIdentified 2.2 3.2 4.5 4.8 5.5 5.7 4.5 4.7 6.8 5.7 3.2 5.4 6.4 8.2 8.0 4.1 3.9 3.7
Source: ABA based on "Statistical Bulletin", Central Bank.
71
Total
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
ANNUAL REPORT 2007 Statistical Appendix
TABLE 43: Non-Performing Loans by Activity As a percentage on total financing of each activity Primary Manufacturing Production Industry 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
27.0 24.4 23.4 22.1 30.5 33.0 24.6 21.7 17.4 23.4 27.2 30.6 50.2 42.1 21.9 7.5 4.2 2.3
23.1 17.7 18.4 21.1 23.7 21.4 15.9 14.7 14.6 15.7 20.7 29.0 48.3 41.8 20.0 7.0 5.8 4.0
Electricity, Gas and Water
Construction Commerce Services
3.3 62.8 7.4 3.3 4.1 1.3 1.8 0.8 1.2 1.3 2.1 2.7 59.1 68.6 56.1 45.9 25.0 21.6
13.6 10.7 13.4 16.5 19.7 23.8 15.9 14.0 11.5 12.1 22.3 24.9 58.0 75.2 54.6 43.9 30.0 16.8
19.7 18.1 16.8 18.0 23.9 31.9 25.5 22.8 20.0 22.4 28.1 30.1 49.7 45.1 27.8 8.5 3.7 2.4
17.8 26.9 16.2 13.1 10.0 10.8 6.9 6.2 4.7 4.7 6.9 10.3 11.6 8.7 5.3 3.5 5.1 5.6
Individual Employees 2.8 7.6 7.2 9.1 12.5 29.9 22.7 15.0 14.7 15.0 21.8 25.8 37.8 24.3 17.5 10.2 10.1 7.8
NonIdentified 45.9 26.6 15.8 17.5 17.6 21.4 20.5 18.4 11.2 18.3 25.3 30.8 39.5 41.8 24.6 23.8 24.5 23.4
Source: ABA based on "Statistical Bulletin", Central Bank.
72
Total
16.0 19.4 15.5 15.8 18.0 22.7 16.8 13.9 12.1 13.4 16.9 20.1 26.6 22.9 14.9 8.5 7.9 6.5
ANNUAL REPORT 2007 Statistical Appendix
TABLE 44: Loans to Private Sector Geographical Distribution
Provinces
III Q 2006
III Q 2007
Change
Change
In Millions of Pesos
Total Capital Federal Buenos Aires Great Buenos Aires Rest of Buenos Aires Catamarca Córdoba Corrientes Chaco Chubut Entre Ríos Formosa Jujuy La Pampa La Rioja Mendoza Misiones Neuquén Río Negro Salta San Juan San Luis Santa Cruz Santa Fe Santiago del Estero Tierra del Fuego Tucumán
67,534.1 38,279.8 10,721.9 5,930.8 4,791.0 149.4 3,536.4 367.0 597.9 661.4 985.3 215.3 318.1 459.4 253.1 1,590.8 654.6 800.0 357.7 782.7 349.3 187.4 310.7 4,443.3 273.3 293.7 945.3
94,535.0 50,584.5 15,991.7 8,634.7 7,356.9 214.1 5,291.2 534.3 807.2 1,076.8 1,497.0 222.3 554.1 693.3 329.7 2,178.0 1,062.3 1,140.0 619.3 1,281.8 516.0 330.4 452.2 6,588.7 398.1 491.7 1,680.1
Share
Nonperforming Loans
% 27,001.0 12,304.8 5,269.8 2,703.9 2,565.9 64.7 1,754.8 167.3 209.3 415.4 511.6 7.0 235.9 233.9 76.6 587.2 407.7 340.1 261.6 499.1 166.6 143.0 141.5 2,145.4 124.7 198.0 734.8
40.0 32.1 49.2 45.6 53.6 43.3 49.6 45.6 35.0 62.8 51.9 3.2 74.2 50.9 30.3 36.9 62.3 42.5 73.1 63.8 47.7 76.3 45.5 48.3 45.6 67.4 77.7
100.0 53.5 16.9 9.1 7.8 0.2 5.6 0.6 0.9 1.1 1.6 0.2 0.6 0.7 0.3 2.3 1.1 1.2 0.7 1.4 0.5 0.3 0.5 7.0 0.4 0.5 1.8
7.5 7.9 8.8 10.5 6.8 5.6 4.6 7.3 9.2 7.1 3.1 7.8 2.9 3.9 16.1 7.3 4.6 7.1 5.0 5.2 17.1 9.6 5.2 3.8 9.9 4.2 11.4
Source: ABA based on "Statistical Bulletin", Central Bank.
73
ANNUAL REPORT 2007 Statistical Appendix
TABLE 45: Financing by Trenches As of November 30, 2007 Trenches From
Individual To
Number
Amount
Legal Persons Number
In Millions of Pesos 0 301 501 1,001 2,501 5,001 10,001 25,001 50,001 100,001 200,001 500,001 1,000,001 2,500,001 5,000,001 10,000,001 25,000,001 50,000,001 100,000,001 Total
300 500 1,000 2,500 5,000 10,000 25,000 50,000 100,000 200,000 500,000 1,000,000 2,500,000 5,000,000 10,000,000 25,000,000 50,000,000 100,000,000
Individual
Legal Persons
Amount
Number
Amount
Number
Amount
In Millions of Pesos
%
%
%
%
791,906 464,661 1,014,413 1,667,818 1,275,643 1,101,901 931,244 265,360 103,650 43,770 12,989 1,786 494 89 36 11 2 ... ...
156.1 208.7 801.9 2,841.8 4,652.5 7,911.3 14,332.6 9,068.4 7,126.3 5,949.4 3,682.8 1,196.7 714.8 304.1 237.4 155.3 63.7 ... ...
23,579 2,677 3,711 7,039 7,009 8,583 12,530 10,805 11,352 10,116 10,008 4,458 3,233 1,400 833 624 246 124 150
3.1 1.2 2.9 12.4 26.2 63.1 208.7 392.4 819.7 1,443.5 3,167.3 3,136.0 4,996.4 4,928.7 5,799.7 9,523.7 8,514.9 8,395.2 51,238.7
10.3 6.1 13.2 21.7 16.6 14.4 12.1 3.5 1.4 0.6 0.2 0.0 0.0 0.0 0.0 0.0 0.0 ... ...
0.3 0.4 1.3 4.8 7.8 13.3 24.1 15.3 12.0 10.0 6.2 2.0 1.2 0.5 0.4 0.3 0.1 ... ...
19.9 2.3 3.1 5.9 5.9 7.2 10.6 9.1 9.6 8.5 8.4 3.8 2.7 1.2 0.7 0.5 0.2 0.1 0.1
0.0 0.0 0.0 0.0 0.0 0.1 0.2 0.4 0.8 1.4 3.1 3.1 4.9 4.8 5.6 9.3 8.3 8.2 49.9
7,675,773
59,403.9
118,477
102,673.7
100.0
100.0
100.0
100.0
Source: ABA based on "Information on Financial Institutions", Central Bank.
74
ANNUAL REPORT 2007 Statistical Appendix
TABLE 46: Financing by Trenches and Situation As of November 30, 2007 (as a percentage) Trenches From
Performing (1) To
Non-Performing (2)
Non-Collectible (3)
Number of Debtors
Debt Amount
Number of Debtors
Debt Amount
Number of Debtors
Debt Amount
0 300 301 500 501 1,000 1,001 2,500 2,501 5,000 5,001 10,000 10,001 25,000 25,001 50,000 50,001 100,000 100,001 200,000 200,001 500,000 500,001 1,000,000 1,000,001 2,500,000 2,500,001 5,000,000 5,000,001 10,000,000 10,000,001 25,000,000 25,000,001 50,000,000 50,000,001 100,000,000 100,000,001
86.7 87.4 88.0 88.2 88.4 90.0 91.1 85.5 84.4 87.0 86.7 88.8 89.7 91.8 93.0 93.8 95.3 94.0 96.9
86.7 87.5 88.1 88.1 88.5 90.1 90.9 85.3 84.6 87.0 86.9 88.9 89.6 91.8 93.1 93.5 94.8 94.5 98.4
3.6 3.1 3.4 3.9 4.1 2.9 1.6 1.2 1.1 0.8 0.9 1.4 1.8 1.6 1.5 1.8 1.4 0.9 2.1
3.4 3.1 3.4 3.9 4.0 2.8 1.5 1.2 1.1 0.9 0.9 1.5 1.9 1.6 1.5 2.0 1.5 0.7 0.9
9.7 9.5 8.5 8.0 7.6 7.2 7.3 13.3 14.5 12.1 12.4 9.8 8.5 6.6 5.5 4.4 3.4 5.2 1.0
9.9 9.5 8.4 7.9 7.5 7.1 7.6 13.5 14.3 12.2 12.2 9.7 8.4 6.5 5.5 4.5 3.7 4.7 0.7
Total
88.3
91.9
3.3
1.6
8.4
6.5
(1) Include situations 1 and 2. (2) Include situations 3 and 4. (3) Include situations 5 and 6. Source: ABA based on "Information on Financial Institutions", Central Bank.
75
ANNUAL REPORT 2007 Statistical Appendix
TABLE 47: Concentration of Credit Assistance As of November 30, 2007 Number of Institutions
Individual
Number
Amount
Legal Persons
Number
In Millions of Pesos
Individual
Legal Persons
Amount
Number
Amount
Number
Amount
In Millions of Pesos
%
%
%
%
1 2 3 4 5 or more
5,088,171 1,748,129 578,217 182,605 78,651
23,163.8 19,190.3 9,847.8 4,250.6 2,951.5
84,446 20,774 7,260 2,891 3,106
17,141.9 14,181.2 8,007.0 6,005.6 57,338.0
66.3 22.8 7.5 2.4 1.0
39.0 32.3 16.6 7.2 5.0
71.3 17.5 6.1 2.4 2.6
16.7 13.8 7.8 5.8 55.8
Total
7,675,773
59,403.9
118,477
102,673.7
100.0
100.0
100.0
100.0
Source: ABA based on "Information on Financial Institutions", Central Bank.
76
ANNUAL REPORT 2007 Statistical Appendix
TABLE 48: Minimum Reserves Requirements (as a percentage)
Since
Item 1. Deposits in current accounts (except 14) and demand deposits in cooperative credit unions. 2. Deposits in savings accounts. 2.1. In Pesos (except 16). 2.2. In Foreign Currency. 3. Custody accounts, special accounts for closed savings groups, "Unemployment fund for construction workers", "Accounts for salaries payments", special current accounts for legal persons and pension savings accounts. 3.1. In Pesos (except 16). 3.2. In Foreign Currency. 4. Other demand deposits and obligations, pension payments granted by ANSES outstanding payment and immobilized funds corresponding to obligations. comprised in these rules. 4.1. In Pesos (except 16). 4.2. In Foreign Currency. 5. Unused overdrafts funds. 6. Deposits in current accounts made by non-banking financial institutions computable for compliance of their minimum reserves requirements. 7. Time deposits, "acceptance" obligations -including liabilities for credit sale or assignment to persons other than financial institutions-, repos, stockrelated collaterals and repos, constant term investments, with advance settlement option or with renewal term for a fixed term and with variable compensation, and other term obligations, except for deposits comprised in items 11, 12, 13 and 15, according to their remaing term: 7.1. In Pesos: i) Up to 29 days. ii) From 30 to 59 days. iii) From 60 to 89 days. iv) From 90 to 179 days. v) More than 180 days. Deposits with "CER" indexation clause are included in this item. 7.2. In Foreign Currency: i) Up to 29 days. ii) From 30 to 59 days. iii) From 60 to 89 days. iv) From 90 to 179 days. v) From 180 to 365 days. vi) More than 365 days. 8. Obligations under foreign lines of credit (except those included in items 7 and 9)
December 2006
January 2007
October 2007
January 2008
19
19
19
19
19 30
19 30
19 30
19 30
19 30
19 30
19 30
19 30
19 30 19
19 30 19
19 30 19
19 30 19
100
100
100
100
14 11 7 2 0
14 11 7 2 0
14 11 7 2 0
14 11 7 2 0
35 28 20 10 6 0 0
35 28 20 10 6 0 0
35 28 20 10 6 0 0
35 28 20 10 6 0 0
77
ANNUAL REPORT 2007 Statistical Appendix
TABLE 48: Minimum Reserves Requirements (continued) (as a percentage)
9. Debt securities (including notes). a) Debt issued as of 01.01.02, including debts arising from restructured obligations, according to their remaining term: 9.1. In Pesos: i) Up to 29 days. ii) From 30 to 59 days. iii) From 60 to 89 days. iv) From 90 to 179 days. v) More than 180 days. 9.2. In Foreign Currency: i) Up to 29 days. ii) From 30 to 59 days. iii) From 60 to 89 days. iv) From 90 to 179 days. v) From 180 to 365 days. vi) More than 365 days. b) Others. 10. Obligations towards the Trust Fund For Assistance to Financial Institutions and Insurance Companies. 11. Demand and time deposits made under Court order with funds originating in lawsuits, and their immobilized funds. 11.1. In pesos. 11.2. In Foreign Currency. 12. Deposits of Trust Funds. 12.1. In Pesos. 12.2. In Foreign Currency. 13. Special deposits linked to foreign capital inflows -Decree 616/05 14. Deposits and other demand obligations in pesos (except "Unemployment fund for construction workers"), which interest rate were higher than 15% of the average BADLAR interest rate of private banks (1) 15. Transferable time deposits certificates of public sector, denominated in pesos, with an option to be payed off in the next 30 days since its initial date.
14 11 7 2 0
14 11 7 2 0
14 11 7 2 0
14 11 7 2 0
35 28 20 10 6 0 0
35 28 20 10 6 0 0
35 28 20 10 6 0 0
35 28 20 10 6 0 0
0
0
0
0
10 15
10 15
10 15
10 15
18 40 100
18 40 100
19 40 100
19 40 100
100
100
100
100 16
(1) Until 6-1-07 the limit was 35% of BADLAR.
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APPENDIX Principal Measures of Banking, Exchange and Financing Policies Communication "A" 4612. OPASI - 2 -378. (01.01.07). The Central Bank extended the asset and index range used to calculate the variable compensation for variable compensation term investments. To such end, a minimum and maximum price variation value range of said assets and indexes shall be used. For such purpose, the following new indexes were included: the interest rate published by the Central Bank for up to 59-day fixed-term deposits (according to the daily survey for Pesos and US Dollar transactions), "CER" (only for 365-day term deposits in Pesos, at a minimum), and the following foreign currencies: US Dollar, Sterling Pound, Yen, Euro, and Real. As regards assets accepted to determine the variable compensation, it was provided that the list of eligible national government obligations shall include those specifically stated in the monthly list of volatilities published by the Central Bank. Finally, it was stated that in lieu of the Central Bank prior approval requirement to start operating, institutions shall notify the Superintendence of Financial and Exchange Institutions when they start operating with each investment type. Communication "A" 4615. LISOL - 1 - 465. (01.16.07). The Central Bank stated that the treatment to be given to variable rate debt instruments issued by the Central Bank shall be the same as that given to variable rate liabilities based on a local index. On the other hand, it was provided that debt instruments updated according to CER issued by the Central Bank shall be totally accounted for within the time period corresponding to the first month. Communication "A" 4620. REMON - 1 - 815 and OPRAC - 1 - 598. (01.25.07). It was communicated that the Inter-American Development Bank granted to Argentina IADB Loan Number 1192/OC-AR for the execution of the Micro, Small and Medium-Sized Company Global Credit Program, intended for the granting of credits to micro, small and medium-sized companies conducting primary or industrial production business, commercial business or devoted to the rendering of services. Loans to financial institutions shall be denominated in Pesos.
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Communication "A" 4621. OPRAC - 1 - 599. (02.01.07). On 02.01.07, the Central Bank amended the ordered text governing Credit Transactions Interest Rates in order that the general public may have immediate access to clear, sufficient and readily available information. This text comprises the media (graphic, radio, TV, brochure, and static advertising, etc.), as well as the scope of the financial institution making the offer, in order to facilitate the quantitative comparison between the nominal rate and the actual total cost of financing. To such end, when advertising lines of credit to the public, both within the scope of the institution as well as in the different media (graphic, TV, radio, telephone, Internet, brochure, and static advertising), financial institutions shall be required to ascribe to the total cost of financing same or higher importance than that given to reports including the annual nominal rate level, both where the nominal rate is advertised as well as where the number of installments and/or its amount are advertised. This hierarchical comparison shall be given by the duration, the way of saying and the number of repetitions in the case of radio, TV or telephone media, and by the letter size in the case of graphic media. Communication "B" 8918. CREFI - 2. (02.09.07). The Central Bank informed that, on 03.02.07, HSBC Bank Argentina S.A. shall execute the consolidation of Hexagon Bank Argentina S.A. Communication "A" 4625. CONAU - 1 - 800. (02.15.07). The Central Bank communicated that, under the terms of Act Number 26,103, the option to enter the Mortgage Refinancing System may be exercised until 02.21.07. Communication "A" 4627. CONAU - 1 - 801. (02.16.07). The Central Bank made clear that, for the purposes of calculating the Foreign Currency Net Global Position, if underlying funds include foreign currency assets, institutions shall include share certificates or debt instruments issued by financial trusts and credit rights regarding ordinary trusts, in the relevant proportion. Likewise, the calculation method for charges was adapted, and it was set forth that charges exceeding the Foreign Currency Net Global Position shall be paid amounting to a 15% or up to a 30% share of the previous month Computable Equity. It is worth mentioning that the previous rule set forth a 30% share.
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Communication "A" 4628. OPRAC - 1 - 601. (02.16.07). The Central Bank tailored its regulation in relation to the determination of Micro, Small or Medium-Sized Company in accordance with amendments introduced by Regulation 147/06 issued by the Secretary of Small and Medium-Sized Companies and Regional Development. Through such Regulation, the maximum threshold of total annual sales had been increased in order for the companies to qualify as Small or Medium-Sized Companies, and software production area companies had been included in the Industry and Mining category. Communication "A" 4630. RUNOR - 1 - 814. (02.19.07). A code of the Electronic Means of Payment was authorized in order to conduct transfers of funds corresponding to attachments ordered by the Provincial Revenue Office of the Province of Buenos Aires carried out through the Court Communications System or SOJ (Sistema de Oficios Judiciales), in order to allow a timely and accurate calculation of funds and the subsequent timely and appropriate release of accounts. Communication "A" 4631. LISOL -1 - 466 and RUNOR -1 - 815. (02.26.07). It was stated that commercial banks shall register a Computable Equity surplus with regard to the minimum capital requirement equivalent to 0.25% of the amount of custody assets, which shall be maintained invested in national government bonds or in Central Bank’s debt instruments, or in other bonds authorized by the Central Bank; provided they are usually quoted in stock exchanges and markets where they are negotiated, and they shall be used as guarantee in favor of the Central Bank in order to answer for any eventual non-compliance. Likewise, debt instruments issued by the Central Bank were included in deposits included in the item relating to market risk of financial institutions’ Minimum Capital Requirements. Communication "A" 4632. CAMEX - 1 - 568. (03.05.07). The Central Bank set forth the requirements to make an exception for the 30% deposit set forth by Decree 616/05, affecting exchange market foreign currency income on account of direct investment contributions intended for share capital reimbursement or used to compensate negative net worth. In such respect, the audited balance immediately previous to the date of the foreign currency entry shall be filed as supporting document within 90 days of the foreign currency entry date with the intervening institution. Such balance shall contain the amount of loss resulting from accumulated income and of other net worth components, the Minutes of the Shareholders’ Meeting or the minutes of an equivalent corporate body meeting, and a customer’s affidavit stating the destination of funds and the destination of the funds, if any, included after the balance sheet date to cover up from losses. 81
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Communication "A" 4633. CAMEX - 1 - 569. (03.05.07). As of 03.05.07, it was set forth that the 30% deposit set forth by Decree 616/05 for entry of foreign currency for financial loans may be waived, provided the direct investors of the debtor company furnish evidence of the capitalization of such loans, and provided further they file proof of having commenced registration proceedings before the Public Registry of Commerce for the final contribution capitalization. Communication "A" 4634. CAMEX - 1 - 570. (03.05.07). It was provided that companies acquiring direct-investment foreign assets, if by reason of the investment amount have required prior authorization by the Central Bank to access the exchange market, and financed in whole or in part with foreign debt, shall show, before having access to the exchange market to pay services or amortizations of such financing, that they have entered and accounted for any rent collected for such assets or for any amounts collected upon the sale thereof, as the case may be. Communication "A" 4637. OPRAC - 1 - 602. (03.07.07). The following amendments were introduced to the "Mortgage Loan Origination and Management Manual": Granting of mortgage loans in Pesos, with monthly installments (before: quarterly or shorter period), under French or German amortization schedule. The debtor and/or co-debtor shall not necessarily be occupants of the property upon which the mortgage shall be constituted. It shall not be expressly required that the loan applicant does not have previous negative business or credit qualifications. The financial institution was granted the power to withdraw the life insurance covering applicants in the case of credits in default for more than 180 days, provided this option is contemplated in its credit policy applicable to this financing. Financing granted using specific screening means (screening systems and credit scoring models) were included, and it was set forth that, in order to replace evidence for origin of funds with other specific documents, financial institutions shall base on variables that they deem relevant to measure the payment capacity relating to each debtor.
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Communication "A" 4639. CAMEX - 1 - 571. (03.13.07). It was provided that the application of foreign currency obtained from collection of exports of goods shall be accepted to pay for principal and interest services of new financial debts undertaken by exporters for foreign bond issues and for foreign bank loans; and in foreign currency with local institutions funded with foreign credit lines or with other sources of financing. Exporters that choose this regime shall appoint a local financial institution, which shall verify and certify compliance with the conditions required for financing eligibility; conduct a follow-up of disbursements and payments, shipping permits and constituted guarantees; and inform the Central Bank, from time to time, in accordance with the reporting regime set forth. Communication "A" 4640. CAMEX - 1 - 572. (03.13.07). The Banco de Desarrollo Econ贸mico y Social de la Rep煤blica Bolivariana de Venezuela (BANDES) was included in the list of Official Credit Agencies. Communication "B" 8945. (03.20.07). The Central Bank informed the proportional interest held by each institution in SEDESA controlling trust, updated to December 2006. In such respect, it reminded that its corporate capital amounts to $1 million and State-owned share holdings amount to $1. Communication "A" 4643. CAMEX - 1 - 574. (03.22.07). The Central Bank extended the 30 or 90 day term (for transactions for more or less than the equivalent to US$ 50 million, respectively) to a 1 year term, in order to enter and settle foreign currency relating to foreign financing in the local exchange market. This new period of time shall be taken into account regardless of the amount of financing obtained. Communication "A" 4645. REMON - 1 - 817 and OPRAC - 1 - 603. (03.29.07). Communication "A" 4620 referring to Micro, Small and Medium-Size Companies Global Credit Program (Spanish acronym "Mipymes") - (IADB Loan Number 1192/OC-AR) was amended. Such communication stated that, in order to be eligible as participants, financial institutions should show a 1, 2 or 3 CAMELBIG rating on the launch date of the Program. Through this regulation, the Central Bank also provided that any and all public banks whose transactions are guaranteed by the National Government, by provincial governments, or by the Government of the City of Buenos Aires may participate in the above mentioned program. 83
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Communication "B" 8956. CREFI- 2. (04.03.07). The Central Bank informed that, on 04.01.07, Standard Bank Argentina S.A. agreed upon the acquisition of assets and the undertaking of liabilities of BankBoston National Association. Communication "A" 4646. CAMEX - 1 - 575. (04.03.07). The Central Bank amended rules regulating the General Exchange Position, and it set forth that, as of 04.03.07, foreign currency notes deposited in authorized exchange institutions shall not be part of such position. Likewise, the Central Bank provided that financial institutions may request the prior agreement of the Central Bank to have limits higher than those set forth in the case of specific need and for temporary periods of time. Communication "A" 4648. LISOL - 1 - 467. (04.13.07). The Central Bank amended the rules governing the “Debtors Rating� and set forth new provisions governing the rating of consumption or home portfolio debtors to whom financing was granted as of 05.01.07. To such end, the periodicity of refinancing installments shall either be monthly, bimonthly or quarterly. The granting of new refinancing within 12 months following a refinancing acceptance shall not imply an improvement in the customer rating until after a minimum 1 year period has elapsed as of the granting of the new refinancing. In order to determine an improvement in the debtor’s rating in the case of refinancing, the specific guidelines governing each category shall be taken into account. Thus, those customers that have refinanced debts through periodic payment obligations may be assigned a new rating corresponding to the immediately following higher level, provided they have timely complied with the payment of 3 consecutive installments (French or German schedule) or provided that, whichever the capitalization schedule, they have paid at least a certain percentage (10% for categories 2 and 3; 15% for category 4; and 20% for category 5). Debtors that have refinanced its debts, with or without delays in payment of services thereof, may remain in "regular" situation 1, provided it is a unique refinancing within a 12 month term. In the case of categories 2, 3 and 4, and if the debt is refinanced and delays of more than 31 days are verified in payment of refinanced debt services, the debtor shall be re-rated to the immediately following lower level.
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Communication "A" 4649. CREFI - 2 - 53. (04.15.07). The Central Bank increased from $2,000 to $5,000 the maximum amount of credits that may be disbursed in cash by agencies devoted to the rendering of certain financial services. Likewise, company supplier and customer payment and collection services were included as a new activity that may be carried out by these agencies, provided they are carried out through delivery and receipt of checks or other means of payment that may be cleared by Electronic Clearing Houses, and through delivery and receipt of business documents and administrative management and custody documents relating to such services. Communication "B" 8969. (04.16.07). It was informed that Banco Río de la Plata S.A. changed its corporate name to Banco Santander Río S.A. Communication "A" 4652. LISOL - 1 - 468. (04.25.07). Rules governing "Financial Institutions Minimum Capital Requirements" were amended in regard to capital contributions made by financial institutions. Before the introduction of this amendment, capital contributions could be made exclusively in cash, in national government bonds, or using debt instruments issued by the Central Bank. With this new provision, capital contributions may only be made in cash and, by way of exception and with the prior authorization of the Superintendence of Financial and Exchange Institutions, national government bonds, debt instruments issued by the Central Bank, and deposits and other obligations through financial intermediation of the Central Bank may be accepted. In the case of national government bonds and of debt instruments issued by the Central Bank, contributions shall be accounted for at their market value. Communication "A" 4653. CONAU - 1 - 804. (04.26.07). Due to the fact that, through Communication "A" 4652, it was set forth that the contribution authorization request, if intended for deposits or other obligations through the institution’s financial intermediation, should have attached a special external auditor report prepared under the terms set forth by the Superintendence of Financial and Exchange Institutions, the Central Bank included a new type of special report that external auditors shall send to the institutions, related to capitalization of liabilities.
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Communication "B" 8978. (04.26.07). The Central Bank informed that, through Resolution 141/07 issued by the Ministry of Economy and Production, foreign currency entry to the local exchange market intended for or originating in the subscription and first sale of shares corresponding to Quota Share Property Programs, within the framework of public offer of shares within the scope of the Buenos Aires Stock Exchange or of other foreign markets, shall be exempted from the obligation to constitute a nominative, non-transferable and non-remunerated deposit as provided by Decree 616/05. Communication "A" 4654. OPASI - 2 -379. (04.27.07). The basic compensation corresponding to fixed-term deposits with variable interest rate was amended, and the possibility of using the BAIBAR rate was authorized. Likewise, the possibility of paying compensations to non-financial or financial sector holders using rates relating to loans and using rates relating to obligations undertaken with foreign banks was eliminated. On the other hand, it was provided that it should be indicated whether the rate is a general mean or whether it corresponds to a certain financial institution type (i.e. private banks, government banks, non-banking financial institutions), as well as the relevant currency and the time span of the survey of choice. Communication "A" 4655. CONAU - 1 - 805. (04.27.07). Section 4, relating to Suspicious Transaction Reports, comprising reports issued as of 01.01.07, was included in the Monthly Accounting Report Regime on "Prevention of Money Laundering and Other Illegal Activities". Communication "A" 4657. CONAU - 1 - 806. (04.27.07). The Central Bank left without effect the requirement to file affidavits attached to the optical image support of reporting regimes and it provided that the information filed through such means shall be deemed to have the same effect as an affidavit. Communication "B" 8981. (04.30.07). The Central Bank set forth that, in order to carry out collection or tax revenue transfers, the CBU number (unique banking code) and the CUIT number (unique tax ID code) corresponding to the provincial tax authority where the funds shall be deposited shall be stated.
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Communication "A" 4660. LISOL 1 - 469. (05.04.07). The Central Bank extended until 07.01.07 the effective date of the provisions set forth regarding consumption or home portfolio debtors’ rating subject to refinancing and notified through Communication "A" 4648. Communication "A" 4661. CAMEX - 1 - 577. (05.09.07). Effective as of 05.14.07, office hours of the Unique and Free Exchange Market (Mercado Único y Libre de Cambios) were changed. To such end, it was set forth that institutions shall conduct foreign currency purchase and sale transactions with customers during business days, at a maximum 2 additional hours a day after office hours of the Unique and Free Exchange Market (Mercado Único y Libre de Cambios) (from 10:00 a.m. through 3:00 p.m.). In the cities where the usual banking hours extend until 2:00 p.m. or earlier, institutions may elect to operate for 2 additional hours in the afternoon, provided no business is transacted as of 8 p.m. In relation to the obligation of institutions to provide evidence of the time at which exchange transactions are carried out on the relevant tickets, other documents issued by the institution were admitted as evidence, provided they state the time of the transaction. It was also made clear that exchange transactions conducted in the local market implying transfer of foreign currency notes to customers or transfer of foreign currency in correspondent accounts shall be carried out within the office hours elected by the relevant institution. In the case of institutions that do not elect to extend the usual office hours, transactions carried out by customers entering the premises within the exchange transaction hours shall be accepted (i.e. withholdings and collection of commissions on foreign currency accounts of same institution customers; arbitration and exchanges abroad; and other institution transactions that, for operative reasons, cannot be closed within the usual institution office hours). Communication "A" 4662. CAMEX - 1 - 578. (05.11.07). The Central Bank provided for a rearrangement and for new regulations to make the access to the Unique and Free Exchange Market (Mercado Único y Libre de Cambios) more flexible for the purchase of foreign currency and of foreign currency notes by non-residents. Such regulations shall be applicable to institutions authorized to conduct exchange transactions as of 05.14.07. Communication "A" 4668. CAMEX - 1 - 579. (05.15.07). Exchange regulations applicable to settlements made as of 05.17.07 for exports collection and reimbursement of advance and sight payments of imports for which dispatch has not been shown were suspended. 87
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Communication "B" 8995. (05.16.07). Within the framework of the Micro, Small and Medium-Size Companies Global Credit Program, a transfer rate of 2.9% (TNA) was communicated. This rate shall be applied to loans granted to institutions. The spread band was also communicated, which may vary between 0% and 6%, and which may be applied by institutions upon the said rate. Both rates shall be in force for a three-month term as of 05.13.07. Communication "A" 4669. CAMEX - 1 - 580. (05.17.07). The Central Bank communicated that, as of 05.21.07 and until 12.31.07, legal persons residing in the country and not included in the financial system may have access to the Unique and Free Exchange Market (Mercado Ăšnico y Libre de Cambios) in order to make portfolio investments abroad, to the extent the funds and rents thereof are applied within 360 days following payment to non-residents on account of: goods import, profits and dividends, and Argentine direct investments abroad. Communication "A" 4670. REMON - 1 - 818. (05.18.07). Effective as of 06.01.07, the Central Bank set forth that deposits and other sight payment obligations in Pesos with compensation above 15% (before 35%) of the mean BADLAR rate of private banks shall have a 100% reserve requirement. Communication "A" 4672. CAMEX - 1 - 581. (05.21.07). As of 05.21.07, the Central Bank included more requirements to be complied with by debt transactions in order to be registered in the local exchange market on account of customer advance payments and export prefinancing. Communication "A" 4675. RUNOR - 1 - 822. (06.01.07). The Central Bank made clear that, in the case of fund transfers from countries with low tax levels or with no taxes at all, the correspondent bank shall be requested to expressly mention that it complies with "Know your customer" principles. Likewise, the Central Bank made clarifications regarding the "Money Laundering Control and Prevention Committee".
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Communication "C" 48,217. (06.01.07). The Central Bank published a series of answers to some questions raised by Bank Associations in relation to Communication "A" 4648, relating to Rules governing Refinance of consumer or home portfolio debtors. Communication "B" 9006. (06.04.07). The Central Bank revoked the authorization to operate as first-degree commercial bank previously granted to ING Bank N.V., Argentine branch, under the terms of section 44, subsection a) of the Financial Institutions Act. Communication "A" 4676. LISOL - 1 - 471 and CONAU - 1 - 812. (06.05.07). In relation to Rules Governing Credit Risk Fractioning, particularly non-financial government sector transaction thresholds, the Central Bank informed the regulatory treatment to be given to financial institutions conducting primary subscription of fixed-rate national government securities in Pesos, with a 5 year or longer term, issued as of 06.01.07. In such respect, it was set forth that such amount may be applied to the “purchase or intermediation transactions� margin without complying with the 15% Computable Equity, to the extent this does not entail increases in surpluses admitted with regard to credit risk fractioning thresholds in relation to transactions carried out with the non-financial government sector. In relation to the accounting valuation criterion for this type of investments, it was provided that institutions may elect either the general criterion (market value) or the cost value. On the other hand, it was informed that repos of these holdings shall be admitted without affecting their book value if the counterpart is the Central Bank, other financial institutions within the country, or a foreign bank having an "A" international rating or higher granted by an international assessment company.
Communication "A" 4677. CAMEX - 1 - 583. (06.05.07). The Central Bank provided that government’s financial institutions, wholly owned by the National Government or wholly owned by a Local, provincial or municipal government, shall be subject to the exchange regulations applicable to the financial sector regarding income on account of foreign debt, provided the destination of the funds is to create national and/or foreign assets, including purchase of government securities from the Central Bank or payment of foreign liabilities and liabilities to non-financial private sector residents and to other banking and financial institutions regulated by the Central Bank.
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Press Release 48,795. (06.06.07). The Central Bank published the new Bank Customer Portal: a web site intended to explain several aspects of the financial system to the general public. Communication "A" 4683. LISOL - 1 - 472. (06.28.07). The Central Bank amended the Rules governing Debtors Rating and Minimum Requirements for Uncollectibility Risk, regarding the granting of consumer or home portfolio financing, which shall be effective as of 07.01.07 and as of 10.01.07, respectively. To such end, it was determined that more rigorous criteria may be taken into account in order to make provisions for uncollectibility risk above the minimum provisions required, provided this constitutes a general policy of the consumer or home portfolio, and provided further it is contemplated in the “Rating and Provision Proceedings Manual”. Likewise, in order to determine an improvement in the debtor’s rating that, as a consequence of having incurred delay in payment of its refinanced obligations has been down-rated to lower levels, the specific guidelines governing each category shall be taken into account. However, the granting of new refinancing notwithstanding it corresponds to the same line of financing or not, within 12 months following a refinancing acceptance, shall not imply an improvement in the customer’s rating until after a minimum 1 year period has elapsed as of the granting of the new refinancing. On the other hand, the Central Bank added the requirement to include, in the “Rating and Provision Proceedings Manual”, internal regulations governing aspects relating to powers granted to officers authorizing overdrafts exceeding the fixed amount. The same requirement shall apply whenever this amount has not been set forth. Communication "A" 4684. CAMEX - 1 - 584. (06.29.07). In order that debt transactions on account of customer advance payments and export prefinancing may be registered in the Unique and Free Exchange Market (Mercado Único y Libre de Cambios), it was set forth that, as of 07.02.07, the following requirements shall be met: The exporter shall not have outstanding debts on account of advance payments and prefinancing effective on 09.08.05 to be paid with goods whose shipping term is shorter than 365 days; provided that the shipment of such goods -whose collection is intended to pay such transactions- has not been carried out on the date of registration of the new transaction.
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Financial institutions charged with follow-up of advanced payments and past due prefinancing shall grant compliance certificates evidencing compliance with the requirement set forth herein. Export prefinancing transactions intended to be registered by the Unique and Free Exchange Market (Mercado Unico y Libre de Cambios) shall be granted by: international organizations or their affiliates, exports credit official agencies, national or foreign banking institutions, other foreign funds, or financial institutions whose business is within the specific scope of regulation of the banking superintendence of the country of residence of the organization granting the financing. Communication "A" 4685. CAMEX - 1 - 585. (07.04.07). Measures relating to access to the exchange market for Pension and Retirement Trust Funds regulated by the Superintendence of Pension and Retirement Trust Funds, for the purchase and sale of foreign currency notes and of foreign currency on account of foreign assets portfolio investments, were provided. Communication "A" 4686. CONAU - 1 - 815 and LISOL - 1 - 473. (07.04.07). The treatment to be given to exchange differences in judicial deposits, arising as a consequence of the devaluation, was provided for in the Minimum Capital Requirements, in the Rules governing Income Distribution, and in the Foreign Currency Net Global Position. In that regard, it was set forth that financial institutions shall make provision for the difference between the equivalent value in Pesos of judicial deposits in the original deposit currency, and the book value of these deposits denominated in foreign currency that, at the beginning of 2002, were affected by the pesification. Likewise, it was admitted that institutions shall be able to turn losses arising from this situation into profits. Communication "A" 4687. CAMEX - 1 - 586. (07.04.07). Clarifications were made with regard to a series of transactions to be carried out through the Unique and Free Exchange Market (Mercado Ăšnico y Libre de Cambios), such as rents collected by residents for their investments in foreign assets, repatriation of funds, and purchase of securities from non-residents. Communication "A" 4690. RUNOR - 1 - 826. (07.19.07). Rules governing "Minimum requirements relating to management, control, and implementation of risks relating to Information Technology and Information Systems",which were published through Communication "A" 4609, were amended. The main items modified were the following:
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The minimum term during which evidence shall be kept was changed from 10 to 6 years. The use of thermal paper was authorized in automatic teller machines. The opening proceeding in neutral automatic teller machines was modified. The previous rule set forth that a person from the bank staff should sign as person in charge of the operation. This rule allowed documents to be signed later by a bank officer. It was provided that, in transactions using credit cards, the association of an ID different from the ID used for the other channels shall not be mandatory. The fact that purchase transactions with debit card require the entry of an ID is not longer mandatory. The issuance of tickets in transactions using debit cards shall only be mandatory in the case of purchases above $20. Communication "A" 4691. REMON - 1 - 819. (07.27.07). A unified bimonthly Minimum Cash Requirement was set forth for the months of July and August 2007, and the daily cash requirement was reduced from 50% to 40%. Communication "A" 4692. CAMEX - 1 - 587. (07.31.07). Rules relating access to the Unique and Free Exchange Market (Mercado Único y Libre de Cambios) for the purchase of foreign currency and of foreign currency notes by nonresidents were amended. To such end, it was set forth that the prior approval by the Central Bank shall not be required for the purchase of foreign currency to be transferred abroad in the case of repatriation of direct investments in real property, to the extent the investor’s investment shall remain in the country at least during 365 days. Repatriation of compensation ordered by local courts in favor of non-residents shall not require the Central Bank’s prior authorization. Communication "B" 9055. (08.13.07). Within the framework of the Micro, Small and Medium-Size Companies Global Credit Program, a transfer rate of 2.9% (TNA) was communicated. This rate shall be applied to loans made to institutions. The spread band was also communicated, which may vary between 0% and 5%. Both rates shall be in force for a three-month term as of 08.13.07.
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Communication "B" 9056. (08.13.07). It was notified that all the resources provided for the Micro, Small and Medium-Size Companies Global Credit Program (IADB Loan) had been committed. Consequently, the receipt of new investment projects was suspended as of 08.13.07. Communication "A" 4694. CONAU - 1 - 817. (08.15.07). A new Notes and Coins Monthly Reporting Regime was set forth, which shall include two filings, one including data until the fifteenth day of the month, and another including data until month-end. The respective maturity dates for these filings shall be the eighteenth and the third day of each month. The regime shall set forth the number of coins and notes held by institution branches, in custody by other institutions, in transit, and the number held in companies devoted to transportation of monies and securities. Communication "B" 9059. (08.16.07). As of 08.17.07, the Central Bank started making active repos through auctions, using securities issued by the Central Bank as underlying asset. Communication "D" 13,301. (08.17.07). It was stated that the information requirement imposed by the Provincial Revenue Office of the Province of Buenos Aires upon financial institutions through Communication "D" 13,117 had complied with the requirements set forth in section 39, subsection C, of the Financial Institutions Act, relating to the elimination of the bank secrecy. Communication "A" 4698. LISOL - 1 - 474, CONAU - 1 - 820 and OPRAC - 1 - 605. (08.24.07). The Central Bank informed that holdings of debt instruments issued by the Central Bank could be classified as "Investment Accounts". Such instruments may be accounted for at their cost of acquisition plus their implicit yield, in lieu of taking into account their market price, to the extent the financial institution undertakes to keep them in its portfolio until their maturity. Communication "A" 4700. REMON - 1 - 820. (08.29.07). The term over which the Central Bank shall operate with repos was amended. The maximum term shall now be 90 calendar days. The previous rule set forth 1, 7 and 30 calendar day-terms respectively. 93
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Communication "A" 4701. REMON - 1 - 821. (08.30.07). Active and passive repos transactions for up to 90 calendar day terms were authorized through the application of LEBAC, NOBAC, National Government Bonds, and BOGAR, as eligible assets. Communication "A" 4702. CONAU - 1 - 821, LISOL - 1 - 475 and OPRAC - 1 - 606. (08.30.07). It was set forth that holdings of national government bonds and debt instruments issued by the Central Bank expressly contemplated in the list of volatilities published by the Central Bank may be classified as “Deliverables for sale”. It was also accepted that, until 08.31.07, institutions may wholly or partly account for in the above-mentioned category holdings of accepted assets recorded on the date of issuance of this Communication. Communication "B" 9063. (08.31.07). It was informed that, in order to know who are the debtors of pension payments and contributions, users appointed by financial institutions shall visit, using their Tax Key, the AFIP (Administración Federal de Ingresos Públicos) web page. On the other hand, AFIP’s obligation to deliver to the debtor-taxpayer the certificate addressed to the institution where the credit assistance had been requested, informing that the company had remedied its debt with the Unique Social Security System (Sistema Único de Seguridad Social), was eliminated. Communication "A" 4707. REMON - 1 - 822. (09.20.07). The Central Bank unified the financial institutions’ October and November Minimum Cash Requirement in a unique bimonthly period. On the other hand, effective as of 10.01.07, the Central Bank changed from 18% to 19% the reserve for deposits constituting Pesos trust funds assets, except in the case of deposits and other sight obligations in Pesos with a compensation higher than 15% of the mean BADLAR rate applied by private banks in the month prior to the relevant month, to which a 100% reserve shall apply. Likewise, during the months of December, January and February, the quarterly deposit shall be required.
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Communication "A" 4710. CAMEX - 1 - 588. (09.24.07). It was set forth that financial institutions may also maintain in their correspondent bank accounts any funds obtained from disbursements of new financial debts abroad, on account of third party transfers pending settlement. Communication "A" 4711. CAMEX - 1 - 589. (09.25.07). Foreign currency negotiations for sales of foreign assets by resident legal persons shall be excepted from the $2 million-threshold, provided the funds are intended for the acquisition of any of the following non-financial assets: investments accounted for as “fixed assets� in the balance sheet; intangible goods for mining cost and/or for research, prospect and exploration costs; purchases of exploitation rights; or investments in assets similar to an intellectual property right, marketed through the assignment of exploitation rights, and that should be recorded as "intangible assets" in the company balance sheet. Likewise, income from the local exchange market from sales of foreign assets of resident individuals and legal persons shall be excepted from this threshold, provided the funds are intended to make new capital contributions to resident companies, and to the extent the company applies such funds to the acquisition of any of the non-financial assets mentioned above. In both cases, the exception shall not apply if the destination changes. In such case, the 30% deposit set forth in Decree 616/05 shall be made, on account of income above the monthly $2 million-threshold. Communication "A" 4715. REMON - 1 - 824. (09.26.07). As of 09.26.07, the issue of Central Bank Bonds and Notes was authorized, exclusively for internal transactions, which shall be referred to as "Internal LEBAC" and "Internal NOBAC". Communication "A" 4716. CONAU - 1 - 826, OPASI - 2 - 383, OPRAC - 1 - 608 and REMON - 1 - 825. (09.27.07). As of 10.01.07, compliance with the minimum cash requirement on term deposits of government securities or debt instruments issued by the Central Bank maintained by customers in financial institutions was modified, and it was set forth that they shall be integrated with holdings valued at market prices and of the same kind (i.e. BODEN 2012), only for monthly terms. The holdings shall be deposited in special accounts authorized in the Central Bank.
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Communication "A" 4717. CAMEX - 1 - 590. (09.28.07). The Central Bank modified, as of 10.01.07, some provisions relating to rents collected by residents for their investments in foreign assets, and some provisions related to settlement on account of repatriation of funds. In such regard, the Central Bank incorporated the treatment ascribed to rents collected by residents for their investments in foreign assets to collection of compensations, alimony, retirement and pension funds, and court judgments abroad, paid by non-residents. Regarding the entry of funds on account of repatriation of resident investments, it was set forth that, in the case of remittances of funds from foreign bank accounts or sub accounts or from accounts open in financial institutions considered as investment banks constituted in OECD countries whose sovereign debt has at least a "BBB" international rating, the intervening financial institution shall verify, on behalf of the resident, that there is a coincidence between the transferor and the beneficiary of the transfer, and the customer shall show that the funds were held in the customer account for at least 10 calendar days (before 20 calendar days) prior to the date of the exchange transaction. On the other hand, it was provided that securities purchase and sale transactions carried out as non-residents and settled within a term of more than 72 hours shall be taken into account, to the effects of exchange rules, as financial loan transactions whenever there arise debts owed by the resident in favor of the non-resident party. Communication "A" 4718. OPRAC - 1 - 609. (09.28.07). It was set forth that, in order that the Central Bank considers requests for exemption from the financial assistance limit, the Ministry of Economy and Production shall expressly approve the assistance or shall intervene in the analysis thereof. Press Release 48,970. (10.18.07). The Central Bank authorized the following private financial institutions to open 57 new bank branches, located in various regions of the country: Santander RĂo, BBVA Banco FrancĂŠs, Standard Bank, Patagonia, Credicoop, Bisel, and Banco de Santiago del Estero. With this addition, the Argentine financial system added a total of 231 new bank branches during the past two years. Communication "A" 4724. CAMEX - 1 - 591. (10.19.07). Measures relating to access to the exchange market for Pension and Retirement Trust Funds regulated by the Superintendence of Pension and Retirement Trust Funds for the purchase and sale of foreign currency notes and of foreign currency on account of foreign assets portfolio investments were provided for. 96
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It was set forth that the Central Bank conformity shall be required whenever the foreign currency net offer or demand by a Pension and Retirement Trust Fund exceeds the equivalent of US$ 20 million in any calendar month, and that the accumulated amount of transactions at the end of each day throughout the month shall be taken into account. The prior conformity of the Central Bank shall not be required whenever the foreign currency net offer is above US$ 20 million as a result of compliance by the Pension and Retirement Trust Fund with the measure adopted through Joint Resolution 209/07 issued by either the Central bank, the Superintendence of Pension and Retirement Trust Funds, or the National Securities and Exchange Commission, which consists in authorizing Pension and Retirement Trust Funds to invest 2% (before, 20%) of the Pension and Retirement Trust Fund managed thereby in Trust Funds, and whose equity includes assets pertaining to MERCOSUR issuers or securities representing such issuers. Communication "A" 4725. OPRAC - 1 - 610, LISOL - 1 - 478 and OPASI - 2 - 384. (10.26.07) Treatment of derivates in Credit Risk Fractioning Rules, Credit Rating and Pledging of Assets was modified. To the effects of Credit Risk Financing Rules, risk-sensitive measures were set forth, categorized for various derivatives and their respective underlying assets, in such a way that pledging percentages are in line with the risk undertaken, which depends on the features of the transaction. With regard to Credit Rating Rules, it was provided for that the value of guarantee trust equity constituted to assure compliance with transactions and to safeguard the transactions of the country’s self-regulated term markets having a central counterpart may be added to the Computable Equity. As regards rules governing Pledging of Assets, the percentage to be applied to the Computable Equity was increased from 5% to 10%, in order to determine the maximum threshold of the aggregate securities and/or cash and cash equivalents that may be pledged for certain transactions. The pledging margin for transactions carried out with the Central Bank and through credit lines of international organizations instrumented through the National Government was increased from 5% to 50% of the Computable Equity. Communication "A" 4728. CAMEX - 1 - 592. (11.01.07). New provisions were issued as of 11.02.07 regarding exchange transactions for sales of foreign currency to residents for the constitution of foreign portfolio investments.
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Communication "B" 9121. (11.07.07). As of 11.08.07, the proceedings provided for as of 02.01.06 by the Central Bank, whereby financial institutions and companies devoted to transportation of monies and securities should make a statement of counterfeit Pesos and US Dollar bills unused, was repealed. Communication "A" 4730. SINAP - 1 - 12. (11.09.07). Drafts, sight, and fixed-rate bonds issued against sight accounts open in cooperative credit accounts were included in the list of instruments that may be cleared through Electronic Clearing Houses. Communication "B" 9123. (11.12.07). The 3.9% transfer rate (TNA) was communicated. This rate shall be charged to loans made to institutions. The spread band was also communicated, which may vary between 0% and 5%. Both rates shall be in force for a three-month term as of 11.13.07, within the framework of the Micro, Small and Medium-Size Companies Global Credit Program. Communication "A" 4736. REMON - 1 - 826. (11.22.07). Amendments were introduced regarding dealing with and holding of Internal LEBAC and NOBAC. In addition to ratifying the dealing of these types of securities in the local markets, it was set forth that only the following parties may hold such securities: financial institutions authorized by the Central Bank; Retirement and Pension Trust Funds, according to their equity and to managed funds; Labor Risk Insurers; Insurance Companies; Pension Funds; holders of official bank accounts; and individuals residing in the country. Communication "A" 4737. COPEX - 1 - 268. (11.22.07). It was set forth that financial institutions that want to operate through Mutual Payment and Credit Agreements entered into with member countries of Asociaci贸n Latinoamericana de Integraci贸n (ALADI) and with the Dominican Republic and Malaysia shall comply with a reregistration proceeding. According to the rule, institutions compliant with relevant requirements may operate the Agreements in relation to imports, through the issuance of payment instruments authorized by the Central Bank, for a maximum term of issue of one year, for up to a maximum 15% of the Computable Equity corresponding to the immediately previous second month, net of adjustments requested by the Superintendence of Financial and Exchange Institutions not yet registered. In the case of exports, operations may be conducted without any limitations as to their amount or term.
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Communication "A" 4738. OPRAC - 1 - 611 and LISOL - 1 - 479. (11.26.07). As of 03.01.08, the Rules governing Debtors Rating and Minimum Requirements for Uncollectibility Risk, particularly regarding the granting of refinancing of consumer or home portfolio, were amended. In such regard, payments required to improve the rating of a refinanced debtor were modified, the term of default was changed to 31 days to include debtors with lower ratings, and it was allowed to constitute higher provisions with regard to Central Bank’s minimum cash requirements, making it clear that regular debtors of consumption portfolios and similar portfolios shall also be included. It was also set forth that, as of 03.31.08, institutions shall communicate to any and all debtors the rating given to that date and any changes introduced, through a print-out summary sent to the debtor or, otherwise, through a note sent within 45 days counted as of 03.31.08 or as of the re-rating date. Communication "A" 4741. LISOL - 1 - 480. (11.30.07). Central Bank monetary regulation instruments, registered in accounting records as "Deliverables for Sale" and "Investment Accounts" in the Rules governing "Minimum Capital Requirements of Financial Institutions and Guarantees" were included. Communication "A" 4742. LISOL - 1 - 481 and OPASI - 2 - 385. (11.30.07). The Central Bank set forth that financial institutions may enter into hedging agreements with local customers to regulate the prices of commodities, providing coverage is agreed upon with a counterparty; and provided further terms and conditions are provided for. The decision to start these operations shall be adopted by the Board of Directors of the financial institution and communicated to the Superintendence of Financial and Exchange Institutions. Customers purchasing the coverage shall be rated as "regular" customers and financial institutions may take out the coverage to be offered in institutional markets operating in national stock exchanges or markets or, only if it is not possible to take out such coverage locally, they may take out such coverage from institutional markets that are OECD members, having a minimum international risk rating of "AA" or higher, or with foreign institutions having a minimum international risk rating of "A" or higher. Credit exposure, measured according to rules in force regarding credit risk fractioning, corresponding to the aggregate amount of coverage sold by the financial institution to customers under this modality and in force at each month closing, shall not be more than 100% of the financial institution’s Computable Equity of the month previous to the relevant month.
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Communication "A" 4743. CAMEX - 1 - 593. (12.03.07). The Central Bank provided for a new exemption to exchange rules regarding executions and cancellations of future transactions, forwards, and other derivatives carried out by the financial sector and by the non-financial private sector. In such regard, it was provided for that transactions carried out with foreign parties as of 12.04.07 shall not necessarily comply with the prior Central Bank’s authorization requirement in order to execute the transaction and to access the exchange market for payment of primes, constitution of relevant guarantees and cancellations, commodities price hedging instruments granted by local financial institutions abroad, as a counterpart of contracts sold to local customers. Press Release 49,053. (12.06.07). The Central Bank informed that it decided to support, as of Monday 12.10.07 noon, the holiday provided for in Decree 1781/07. On the other hand, it was communicated that the Central Bank shall conduct transactions in monetary and exchange markets between 10:00 a.m. and 12:00 a.m. and that the Electronic Payment System or MEP (Sistema de Medio Electrónicos de Pagos) and the Public Debt Instruments Registration and Settlement Center or CRyL (Central de Registro y Liquidación de Instrumentos de Endeudamiento Público) shall operate until 2:00 p.m. Communication "A" 4745. CAMEX - 1 - 594. (12.06.07). The Central Bank provided that, as of 01.02.08, institutions authorized to conduct exchange transactions shall have a visible place where they shall conduct exchange transactions with customers without interruption during transaction office hours. It provided further that retail exchange rates offered by the institution shall be net of any expense or commission for the purchase and sale of notes and travelers’ checks, at least for the following currencies, provided they operate with the following currencies: US Dollars, Euro, Sterling Pounds, Swiss Francs, and currencies of borderline countries. Communication "A" 4749. CAMEX - 1 - 595. (12.17.07). The Central Bank amended the regulations applicable to entries to the Unique and Free Exchange Market (Mercado Único y Libre de Cambios) as regards advance payments made to customers and regarding export prefinancing, particularly the terms within which they shall make such payments.
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Press Release 49,073. (12.17.07). It was informed that the Central Bank decided to include December 24 and December 31, 2007 as holidays, as provided for in Decree 1781/07. The Electronic Payment System or MEP (Sistema de Medio Electrónicos de Pagos) did not operate on these dates. Communication "A" 4750. RUNOR - 1 - 839. (12.19.07). The Central Bank set forth that, in the event institutions suspect or have reasonable cause to suspect the existence of funds related to terrorism, terrorist acts, or terrorist organizations, or if there are any hints that such funds are going to be used by such criminal organizations, they shall report the situation immediately to the Financial Information Unit. Communication "A" 4752. CAMEX - 1 - 596. (12.21.07). The Central Bank provided for that commissions and expenses for the granting of loans and other debts to foreign institutions directly discounted by the foreign creditor or by the obligation placement agent prior to the date of availability of the funds to the debtor, shall be registered in the Unique and Free Exchange Market (Mercado Único y Libre de Cambios). On the other hand, it was made clear that the intervening institution shall make such registration provided that the customer files the required documents, and provided further amounts are in accordance with the usage and customary practices of the debt markets. Communication "C" 49,743. (12.26.07). The holidays to be observed by financial institutions during 2008 were informed. Communication "A" 4754. REMON - 1 - 827 and OPASI - 2 - 386. (12.28.07). As of 01.01.08, the minimum term for the raising of fixed term deposits with advance repayment option for non-financial public sector holders, whichever the applicable jurisdiction, was reduced from 180 to 90 days. Likewise, a 16% reserve was set forth in the event less than 30 days remain before the exercise of the advanced repayment option. Communication "A" 4755. OPASI - 2 - 387. (12.28.07). Limitations in force regarding the number of regular check endorsements (up to one endorsement) and of deferred checks (up to two endorsements) provided for in the Regulation of Bank Current Account were extended until 12.31.08.
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