General Guidance for Developing Differential Premium Systems

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October 31, 2011 APPENDIX I Country Submissions on Differential Premium Systems The IADI Subcommittee on Developing Guidance for Differential Premium Systems received the following country system profiles for use in the preparation of this guidance paper. 1. Argentina SEDESA (Seguro de Depósitos S.A.) – Argentina: The deposit insurance system of Argentina currently in force was established by Law No. 24.485 and organized by Presidential Decree No. 540/95 and its amendments. The implementing authority of this system is the Central Bank of Argentina (BCRA). Section 1 of Presidential Decree No. 540/95 establishes the creation of the “Deposit Guarantee Fund” (DGF), which is created for the purpose of covering the banking deposits within the scope foreseen in this Decree. According to Section 6 of the above mentioned Presidential Decree, all financial institutions authorized to operate in Argentina shall be obliged to deposit with the DGF a normal monthly assessment to be determined by the Banco Central de la República Argentina between a minimum of 0.015% and a maximum of 0.06% of the average of the daily balances of deposits in pesos and foreign currency with the financial institutions. In turn, pursuant to Communication A2337 (May 19, 1995) the Central Bank informs financial institutions about the implementation of the rules of the system, and includes the description of Additional Contributions which institutions would have to make. 19 This communication confirms that financial institutions must remit the additional contribution, which results from the following factors: 19 Differential Premiums in Argentina are called "Additional Contributions". Additional contributions are set by the Central Bank for each institution, based on risk indicators it may deem appropriate. 27
October 31, 2011 1) The rating is assigned to the financial institution according to the evaluation made by the Superintendence of Financial and Exchange Institutions (CAMELS). To determine the additional premium, the normal premium is multiplied by an index (“I”) based on the preceding factors and has a value between 1 and 2. Said index is estimated as follows: I = {(A + B + 2 C) / 4} – D A. ratio of regulatory credit risk provisions required by the regulations included in Annex II to Communication "A" 2216 from the BCRA and the total financial operations included in this Annex. The index value is between 1 and 2.5. B. ratio of risk assets of the Institution and total assets. The index value is between 1 and 2. C. Indicator of the rating assigned to the entity according to the evaluation made by the Superintendence of Financial and Exchange Institutions. The value arising from the following table will be considered: Rating Index 1 1,00 2 1,33 3 1,66 4 2,00 5 2,00 D. ratio related to the relationship of computable excess of the compilation of liability with respect to the minimum capital requirement. The value arising from the following table will be considered: Value RPC/ minimum capital requirement Index Below 0,90 -0,5 more than 0,90 to 0,95 -0,25 more than 0,95 to 1,00 -0,1 more than 1,00 to 1,10 +0 more than 1,10 to 1,20 +0,05 more than1,20 to 1,30 +0,1 more than1,30 to 1,50 +0,2 28
Page 1 and 2: General Guidance for Developing Dif
Page 3 and 4: October 31, 2011 I. Executive Summa
Page 5 and 6: October 31, 2011 Transparency, dis
Page 7 and 8: October 31, 2011 III. Background So
Page 9 and 10: October 31, 2011 It is important to
Page 11 and 12: October 31, 2011 be difficult to ob
Page 13 and 14: October 31, 2011 Combined approache
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Page 17 and 18: October 31, 2011 and those receivin
Page 19 and 20: October 31, 2011 a premium increase
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Page 23 and 24: October 31, 2011 categories; (2) ut
Page 25 and 26: October 31, 2011 necessary, they sh
Page 27: October 31, 2011 12)Ronn, E. and A.
Page 31 and 32: October 31, 2011 and, where circums
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Page 35 and 36: October 31, 2011 necessary to achie
Page 37 and 38: October 31, 2011 by April 30, they
Page 39 and 40: October 31, 2011 CAMEL 22 Weight Ra
Page 41 and 42: October 31, 2011 The Autorité de C
Page 43 and 44: October 31, 2011 There is a Guarant
Page 45 and 46: October 31, 2011 situation of a mem
Page 47 and 48: October 31, 2011 Methodology used f
Page 49 and 50: Q1 Q2 Violations of prudential and
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Page 53 and 54: October 31, 2011 transparency, that
Page 55 and 56: October 31, 2011 Premium categories
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Page 59 and 60: October 31, 2011 S/N Appendix I Dif
Page 61 and 62: October 31, 2011 and was submitted
Page 63 and 64: October 31, 2011 Date Membership 07
Page 65 and 66: October 31, 2011 (1) Premiums The d
Page 67 and 68: October 31, 2011 (a) If there is no
Page 69 and 70: October 31, 2011 • Premium Rates
Page 71 and 72: October 31, 2011 The premium system
Page 73 and 74: October 31, 2011 Adoption of Risk-B
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October 31, 2011 Large Institution
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October 31, 2011 Assessment rate ad
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October 31, 2011 • Total risk-bas
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October 31, 2011 The following Figu
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October 31, 2011 Figure 2 - COPAB
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October 31, 2011 financial soundnes
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October 31, 2011 ANNEX II Deposit i
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General Guidance for Developing Differential Premium Systems

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