The BCRA updated the reserve requirements for banks. New bonds were included in the list of instruments that can be counted in reserve requirements.
He Central Bank (BCRA) expanded the requirements of the Minimum Cash Standardswhich regulate banks’ reserve requirements and, from now on, allow them include National Treasury bonds in pesos in that account. This is how it was arranged in the Communication “A” 8134issued this Thursday, after the usual board meeting of the monetary regulator.
“There are different ‘drawers’ for lace. Until now, only cash or Treasury Bonds (BOTEs) could be included within the reserve requirements, and, as of this modification, they allow the addition of a broader menu of bonds,” explains a source knowledgeable in the subject to Scope.
With this step, A better rate transmission of fixed-term banks and other instruments is enabled. And, according to the source, “BOTEs have a low yield and now more better-paying instruments are included, so it is expected that entities will choose to include bonds with higher rates in reserve requirements.”
The new instruments that can be counted in banks’ reserve requirements
The standard establishes that the Financial entities may integrate the requirement in pesos with:
- BCRA Liquidity Letters (LELIQ).
- BCRA Notes (NOBAC).
- National public securities in pesos – including those adjustable by the CER and with performance in dual currency (DUAL BOND) and excluding those linked to the evolution of the US dollar.
- Liquidity Tax Letters (LEFI) of residual term (at the time of subscription) not less than 180 days nor more than 450 calendar days acquired by primary subscription from 06/01/21.
This is established in the new communication “A” from the BCRA.
Source: Ambito
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