THE CENTRAL BANK OF ARMENIA BOARD RESOLUTION. Approval of Regulation 15 Credit Organizations Statements; Reporting and Release

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1 THE CENTRAL BANK OF ARMENIA BOARD RESOLUTION Approval of Regulation 15 Credit Organizations Statements; Reporting and Release By virtue of Armenian Law on Credit Organizations, Article 15; and Armenian Law on Regulations, Article 16; and Armenian Law on The Central Bank, Article 20 (e), the Board of the Central Bank enacts: 1. To approve the Regulation 15 Credit Organizations Statements; Reporting and Release, pursuant to the Appendix (attached); 2. To CBA Chairman, Deputy Chairman and Board Administration to arrange official English and Russian translation and publication of the regulation approved by this Resolution within 3 months upon entry of this Resolution into force. 3. This Resolution shall come into force the 10- th day following publication. T. Sargsyan Chairman, Central Bank of Armenia December 23, 2002, no. 407-S 3

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3 Appendix Approved by: Board of the Central Bank of Armenia Resolution 407-S, December 13, 2002 R E G U L A T I O N 15 CREDIT ORGANIZATIONS STATEMENTS; REPORTING AND RELEASE CHAPTER I. GENERAL PROVISIONS 1. This Regulation is defined pursuant to Armenian Law on Credit Organizations, Article 15, and shall regulate presentation of statements, procedure and terms of reporting to the Central Bank of Armenia (Central Bank) by credit organizations operating in the Republic of Armenia. CHAPTER II. PRESENTATION OF STATEMENTS TO CENTRAL BANK BY CREDIT ORGANIZATIONS 5

4 2. Credit organizations shall present statements to the Central Bank as per form and periodicity provided in the table as follows: Title of Statement Number Periodicity Balance sheet 1 monthly, annually 2 S1 1, S3 and minimum total capital 3 monthly standards 3 Income and expenses of credit organization 5 monthly, annually 4 Loan investments, receivables and 6 monthly investment securities 5 Foreign currency disposition standard 7 weekly 6 Term of maturity of assets and 9 monthly liabilities 7 Statutory capital formation 10 Semiannuall y and at each change 8 Change in total capital 11 quarterly, annually 9 Cash flows of credit organization 12 annually 10 Cash turnover of credit organization 13 monthly (general and by branches) 11 Average interest rates on funds 17 weekly attracted and allocated in previous week 12 Operations between credit organizations 18 quarterly and non residents 13 Foreign exchange operations 19 daily, in case of FX trading 14 Payment services and payment 20 monthly instruments by credit organization 15 Results of securities issue 21 for each issue 16 Securities issued and investments made 22 annually by credit organization 17 Tangible assets possessed by, and not used for business of, credit 24 monthly organization; Amounts of investments in statutory capital of banks and credit organizations 18 Reference on physical entity as investor in statutory capital of credit organization 25 at each change of shareholder or participant 6

5 19 Reference on legal entity as investor in statutory capital of credit organization 26 at each change of shareholder or participant 20 Staff of credit organization 28 quarterly 21 Public statement on prudential economic standards 30 quarterly In addition to statements specified above, credit organization must, upon request of the Central Bank, present other statements. CHAPTER III. COMPLETION AND PRESENTATION OF STATEMENTS 3. Credit organizations shall present statements, notices, references to statements, except for Forms 21 and 22, exclusively via the CBANet system, in compliance with the files provided by the Central Bank. The statements shall be presented in protected files as delivered by the Central Bank. Change of such files is prohibited. A statement presented otherwise will be considered unaccepted. Statements shall indicate dates of the last day of the reporting period (for example, weekly statements shall indicate Sunday, and monthly, quarterly and annual statements shall indicate the last day of the month). Indication of the date shall be formatted as follows: day. month. year (e.g. 31/01/2001). Statements, notices, references to statements accepted by the Central Bank as required serve as a written evidence stipulated in Civil Code Procedure of the Republic of Armenia, Article In presenting the statements on magnetic carriers or via credit organization shall encode the files in compliance with the code delivered by the Central Bank (paragraph 5). The file code is structured as follows: 7

6 Credit institution s code Dash Statement number Dot Abbreviatio n xls 5. The five-digit codes for names of credit organizations: Credit organization s name Credit organization s code 6. Statement 1 represents credit organization s balance sheet, and shall be filled in thousands of drams, without decimal units. The total amount shall be indicated at the bottom of each subsection. Grouping of foreign currency in columns Group I FX and Group II FX shall be made as required by Regulation 14 Regulation of credit organizations activity; prudential standards for credit organizations activity, approved by the Board of the Central Bank Resolution 347-S, November 5, 2002, (hereinafter Regulation 14). Post-balance sheet accounts shall be indicated in thousands of drams. Statements shall contain data as of last day of the reporting period (also data of Saturday, Sunday and officially non working day, provided the credit organization was operative in these days). Accounts established by credit organization of its own shall not serve as a separate account in statements filed to the Central Bank. 7. Statement 3 consists of 3 pages (3 sheets by file). First page shall indicate average monthly indicators used in calculation of prudential 8

7 economic standards and actual size of these standards, calculated as per Regulation 14. Column Total capital shall indicate size of capital calculated for the minimum total capital standard. Column 5 shall indicate credit organization s maximum risk on single borrower, whether or not the standard is violated. If the standard is violated by several borrowers (parties) the next lines will show all violated amounts. Credit organization must present a reference to statement to state whether or not there was violation at the time such amounts were provided. Second page shall indicate size of total capital and book value and standard value of its components. It shall also indicate decrement required for calculation of standards for all days of a month. Third page shall indicate components for calculation of credit organization s total capital adequacy standard, S1 1, (relevant balance sheet items and decrement according to Regulation 14), for all days of a month. Statement 3 must be presented by credit institution along with the reference on page 4 of the Statement. 8. Statement 5 shall be filled out using accrual data at amount of i) interest and non-interest income, ii) interest and non-interest expense, iii) charges to assets loss reserves, iv) collection of charged off assets. Column Previous period shall indicate accrual data as of the last day of the previous month, while quarterly and annual statements shall be used for data of the previous quarter and year, correspondingly. Differentiation of items into residents and non residents shall be made to identify source of income. For example, income on sale of securities issued by resident to non resident shall be shown in sub-line Non resident of line Net income on sale of securities. 9

8 9. Statement 6 consists of 2 pages (2 sheets by file). First page (sheet 1) shall be filled out as follows: Table I. Loan investments, deposits, factoring, leasing, repurchase contracts, by dates shall be used to indicate amount of balances of loan investments, deposits, factoring, leasing and repurchase contracts. In line 1. Assets, total: deposits, loans, factoring, leasing, repurchase contracts, only the last two columns (total) of the table shall be filled out. Line Term assets shall indicate total amount of term loans, bank deposits, factoring, leasing and repurchase contracts of credit organization, under contractual terms. Credit unions, saving unions and universal credit organizations will use other lines to indicate loans, (lease and factoring firms, to indicate leasing and factoring, respectively), other than loans/leasing, factoring to credit organizations and banks. Loans to, and repurchase contracts with, credit organizations and banks shall be indicated in the next line o/w, credit organizations and banks. Line Assets prolonged shall indicate total amount of term loans, bank deposits, factoring, leasing and repurchase contracts of credit organization for actually prolonged days, in a relevant column. If prolonged several times, total prolongation of the asset shall be considered. For example, if prolonged thrice, for 40 days each time, the amount of loan shall be indicated in column days. If repayment is extended before completion of original date of repayment, the asset shall be considered prolonged upon prolongation thus indicating in lines 1.2 (Assets prolonged). Credit unions, saving unions and universal credit organizations will use other lines 10

9 to indicate loans, (lease and factoring firms, to indicate leasing and factoring, respectively), other than loans/leasing, factoring to credit organizations and banks. Loans to, and repurchase contracts with, credit organizations and banks shall be indicated in the next line o/w, credit organizations and banks. Line Overdue assets shall indicate amounts of overdue loans, bank deposits, factoring, leasing and repurchase contracts of credit organization, by days overdue and actually prolonged. For example, if prolonged for 80 days and upon presentation of statement is overdue for 60 days, the amount of the asset shall be shown in column days of the line. Credit unions, saving unions and universal credit organizations will use other lines to indicate loans, (lease and factoring firms, to indicate leasing and factoring, respectively), other than loans/leasing, factoring to credit organizations and banks. Loans to, and repurchase contracts with, credit organizations and banks shall be indicated in the next line o/w, credit organizations and banks. The same asset shall be indicated in one line out of three (i.e. if prolonged or overdue, the asset shall be shown in relevant line). The figures in last two columns of line 1. Assets, total: deposits, loans, factoring, leasing, repurchase contracts shall be equal to amounts in column Total of lines 1.1, 1.2 and 1.3. Line 2. Loans to non-residents, deposits, factoring, leasing, repurchase contracts shall be used to indicate amount of all these assets provided to non-residents, and only the last two columns (total) of the table shall be filled in. Lines 2.1, 2.2 and 2.3 shall be used to indicate classified assets provided to non-residents. These lines shall be filled in using the same principle as for the lines 1.1, 1.2 and

10 Sub points of line 3. Loans to non-residents, deposits, factoring, leasing, repurchase contracts, by branches shall be filled in as per borrower segmentation and original dates specified in the contracts, plus the days prolonged and overdue. For example, if an asset is provided to agriculture for the original period of 150 days, the amount shall be posted in line 3.2, column days. If prolonged for 180 days, the amount of the asset shall move to column From 271 days to 1 year. Should it become 40 days overdue, it will move to column Over 1 year. The days prolonged shall be calculated using the method of filling out the prolongation line of part 1. Assets, total: deposits, loans, factoring, leasing, repurchase contracts. In this context, one year shall be considered 365 or 366 days, as calendar days. In line 3. Loans to non-residents, deposits, factoring, leasing, repurchase contracts, by branches, only the last two columns (total) shall be filled out, while the figures in all the columns of line 3.1 Industry shall be equal to the amount of all sub points of that subsection. Line Public catering and other services shall cover restaurants, cafés, hotels, laundries, all other entertainment and service centers. Line Financial sector shall cover assets provided to banks, credit organizations, insurance companies, lombards, currency dealers and other broker and dealer offices. Line Other branches of economy shall cover all the rest of resources not reflected in the above classifications. Figures in all lines of column 12 of the table shall be equal to data of the relevant lines of columns 2, 4, 6, 8 and 10. Figures in all lines of column 13 of the table shall be equal to data of the relevant lines of columns 3, 5, 7, 9 and 11. Table II. Size of reserves on loans, receivables and post balance sheet items containing 12

11 loan risk shall be used to indicate the loans provided, bank deposits, receivables and post balance sheet items containing loan risk. In tables II. Size of reserves on loans, receivables and post balance sheet items containing loan risk and III. Size of investments loss in investment securities, the classification of, and provisioning for, loans, bank deposits, receivables, post balance sheet items containing loan risk, and securities shall be made as required in Procedure on classification of loans and receivables of Armenian banks, and formation of reserves and Procedure on formation and use of reserves for investments in investment securities by Armenian banks, jointly adopted by the Central Bank and Ministry of Finance and Economy. Second page (sheet 2) shall be filled out as follows: Table IV. Non performing assets and assets charged off to post balance sheet, i.e. loans, deposits, factoring, leasing, by branches shall be used as follows: Lines and sub-lines of the statement shall be filled out as per borrower segmentation. Columns Non performing assets shall reflect the loans, deposits, factoring, leasing classified as non performing. Columns Assets charged off to post balance sheet shall indicate the loans, deposits, factoring, leasing charged off to post balance sheet. Columns Post balance sheet residual at beginning of month and Post balance sheet residual at end of month shall indicate the funds at the beginning and at the end of a month, respectively. Column Assets charged off to post balance sheet during a month shall indicate the funds charged off to post balance sheet in the reporting period. Column Collection of assets charged off to post balance sheet shall indicate the funds returned or repaid by debtor in the reporting period. 13

12 10. Statement 7 on foreign currency disposition standard shall be used to fill out the columns FX position at end of day and FX disposition standard limit. In filling out column 3 Group I FX position and column 4 Group II FX position, foreign currency shall be grouped according to foreign currency groups determined by Regulation 14. Column 5 Gross FX position shall be used to indicate maximum foreign currency disposition standard determined by Regulation 14. FX term transactions in process shall be filled out at reference rate determined by the Central Bank as of the day of transaction. Statement 7 must be presented by credit organization along with the reference on page 2 of the Statement. 11. Statement 9 shall be filled out using the dates due for the assets and liabilities to repayment. In section Terms of liabilities, amounts payable on trust operations, amounts payable on financial lease shall be grouped as per customer as part of the contract, in lines Liabilities to banks, Liabilities to credit organizations, Liabilities to legal entities or liabilities to physical entities. Line Liabilities to international financial institutions shall indicate resources from international institutions, irrespective of the guarantor. Line Liabilities to other parties shall indicate resources from non bank financial institutions, settlement liabilities through payment documents, dividends due, payables, transit accounts and other debt. Line Post balance sheet items shall indicate grand total of lines Guarantees and sureties and Other post balance sheet liabilities. The line Other post balance sheet liabilities will include amounts of unused L/Cs, lines of credit, credit 14

13 cards, overdrafts. Column Overdue shall be used to indicate only the liabilities that, except for the ones in lawsuit or proceedings, were not observed in due course of time. The liabilities as part of cases in lawsuit or proceedings are considered demand liabilities and shall be indicated in column Demand. Column Demand shall be used to fill out demand resources or resources with unfixed date of maturity (with interest accrued) that is posted in category Liabilities. If the assets are not demand resources or have unfixed date of maturity, these shall be considered assets with maturity date of over 180 days. In Statement 9, the assets section does not include fixed assets and intangible assets, and prepayments to acquire such, and advances due for posting as expense. Section terms of assets of the statement does not indicate funds deposited for an unspecified period and funds frozen. When an asset s contractual term is in excess of its freezing or depositing term it shall be indicated as per period due for repayment, and, oppositely, as per period of freezing. Assets (for example, government securities, factoring, financial lease, etc) that are posted in balance sheet at discount shall be indicated in this statement at book value plus the discount rate. Line Armenian T-bills shall indicate treasury bills acquired by credit institution. This line shall not reflect government securities pledged. Line Other securities shall indicate credit organization s equity shares in statutory capital of other parties (banks, credit organizations and other organizations), Armenian government bills, and marketable securities available for commercial purposes and held up to maturity. Line Claims on other parties shall reflect claims on other financial institutions, equity 15

14 participations, dividends receivable, amounts receivable on trust operations, receivables, resources posted in Other assets category of the balance sheet (except for cases mentioned above), and other claims. Foreign currency shall be grouped in accordance with foreign currency groups determined by Regulation 14. Sections of Group I FX and Group II FX of the statement do not reflect grand total of lines Post balance sheet items. Lines of Group I FX and Group II FX shall consider also liabilities to, and claims on, unfinished post balance sheet transactions (spot, swap, futures, forward), in columns as appropriate. Lines Changing interest rates shall be used to indicate the funds attracted or allocated at unfixed interest rates, as such rates are revisable at any change of market rates or when a contract stipulates so. Data in lines Changing interest rates shall be filled out based on the time due for interest rate revision other than the time due for repayment of an asset or liability. Example 1: If a credit organization has borrowed resources with maturity of up to 5 years, with interest rates to be revisable once in each quarter, line Changing interest rates shall be used to indicate the borrowing in column days, while in the next reporting period, the same borrowing would be indicated in column days. Example 2: If a credit organization has borrowed resources with maturity of up to 3 years, with interest rates to be revisable at any change in the market, line Changing interest rates shall be used to indicate the borrowing in column Demand. Lines Fixed interest rates are designed to reflect resources attracted and allocated at fixed rates. Assets and liabilities shall be reflected as per period due for maturity. 16

15 The amount in lines Group I FX and Group II FX of Statement 9 shall be equal to the amount in all the above lines, except for the line Post balance sheet items, but including the amount of term transactions in transit. The amounts in lines Changing interest rates, Fixed interest rates and Interest free shall be equal to the amount in all the above lines, except for the amount in lines Post balance sheet items (in table Terms of liabilities ), Interest payable and Interest receivable. Line Interest free shall be used to indicate fixed interest rate resources attracted or allocated with stipulation to pay/receive without interest. Table 3 is designed to calculate ratio of assets to liabilities with a month due for maturity, specified by Regulation 14. Line Assets with a month due for maturity shall be used to indicate grand total of lines Total in columns Demand and Up to 30 days of table Terms of assets. Line Liabilities with a month due for maturity shall be used to indicate grand total of lines Total in columns Overdue, Demand and Up to 30 days of table Terms of liabilities. Line Terms of assets/liabilities with a month due for maturity shall be filled out using data as percentage. Statement 9 must be presented by credit institution along with the reference on page 2 of the Statement. 12. Statement 10 shall be presented once in a six month period and at any change in statutory capital. In the event statutory capital changes, section Date shall indicate the day of change in statutory capital. In presenting semiannual statement, section Date shall indicate the last day of the reporting period/semi-annum. Section Corporate status of credit organization shall 17

16 indicate whether a credit organization is a jointstock, limited liability or cooperative company. Statement 10 shall be filled out by: Credit organizations as open joint-stock companies for shareholders possessing 1% or more equity share. Equity share of the rest of shareholders shall be indicated in two lines of which the first is for residents, the second is for non residents. Credit organizations as closed joint-stock, limited liability and cooperative companies for all equity holders (shareholders, members). If participant is an individual there should be an indication physical entity in column Type of ownership ; if more than 50% of a debtor s equity belongs to state, there should be an indication State participation ; all other cases will require an indication Non state. Column Type of share shall be filled out only for joint-stock companies. Column Ordinary shall be used to indicate number of ordinary shares; column Preferred, to indicate number of preferred shares depending the type of the share (column Type of share will not be filled out for credit organizations as limited liability and cooperative company). Column Day of registration at depositary/central Bank registry shall be used by joint-stock companies to indicate the day of registration at the Depositary or registry of credit organization s registry of shareholders, and by limited liability and cooperative companies to indicate the day of registration at the Registry of the Central Bank. Column Resident/Non resident shall reflect words resident or non resident. The definition of these terms is provided in Monetary and Banking Statistical Bulletin, approved by the Board of the Central Bank, Board Resolution 173, May 14,

17 At each change of shareholder or equity participant, credit organization must submit a reference along with the statement on new shareholder or equity participant. Physical entity and legal entity status of shareholder or equity participant shall be indicated in Reference 25 and Reference 26, correspondingly. Credit organization shall, along with statement 10, present also documents certifying such change (e.g. contract for purchase and sale, an extract from registry, account statement). Open joint-stock companies shall submit these documents when there is change of shareholders holding more than 5% participation. If no changes occur in statutory capital, credit organization must report on this each six months other than presenting the statement. Credit organization must present statement 10 also when there is modification in its form by the Central Bank, within two weeks upon such modification, on the second business day following the two-week period. 13. Statement 11 is designed to present minimum total capital standard components, their decrement at the beginning and end of the reporting period, and changes of such components during the reporting period. Column Previous period shall be used to fill out the last day data of previous quarter, while data of previous year shall be included in annual statement. All figures in table shall be marked positive. 14. Statement 12 shall be filled out by direct method of disclosure of cash flow. In the statement, credit organization s cash flow shall be grouped in 3 sections - cash flows on: i) operational, ii) investment, and iii) financial activities. Section Cash flows on operational activity shall indicate cash flow on credit organization s 19

18 general business, and its income and expense. The statement will require double indication when resources are made available in a transaction between credit organization and customer, and when borrowing from the same customer increases to the expense of the said resources. For example, if credit organization has provided a loan to a customer, while funds borrowed from that customer have increased to the expense of money lent, the statement shall indicate an increase in loan investments, and also an increase in funds borrowed. Section Cash flows on investment activity shall reflect cash flow that covers investments in term and termless securities other than securities held for commercial purposes and available for sale; deposits with banks; fixed assets and other related assets for investment. Section Cash flows on financial activity shall be used to indicate cash flow on loans from banks, other funds borrowed, funds received through leasing, securities issued by credit organization, cash flows on changes in capital. Cash flows generated from operations in foreign currency shall be recorded in Armenian Dram using the day s exchange rate. Influence of change in exchange rate on cash assets shall be reflected in statement on cash flows to reconcile cash assets generated at the beginning and end of the period in review. This amount shall be shown apart from cash flows on operational, investment and financial activities. Column Previous period shall indicate data of the last day of previous quarter, while data of previous year shall be included in annual statement. Cash and cash equivalents, net, shall comprise cash, cash equivalent payment documents provided in Regulation 14, balances of credit organization s accounts with banks. Attached to the statement, 20

19 there must be a notice on non cash operations, unrelated to cash flows. Such operations include, but are not limited to, repayment of loans through re-possession of collateral, purchase/sale of assets on credit, redemption of bonds issued by credit organization to the expense of issue of shares. 15. Statement 13 is designed for credit organization to present data in summary and by branches. Each branch shall be required to present separate statement on cash turnover. Lines 3 and 6 shall be used to fill out amounts received from/delivered to banks Cash balance at the end of the reporting month (line 6) shall correspond to grand total of cash accounts Cash in vault and Cash in ATMs. 16. Statement 17 shall be used to indicate new credit (loans, borrowings, credit cards), overnight arrangements, repurchase contracts signed during the reporting period, and resources attracted or allocated in the reporting period based on previously concluded contracts, in thousand of units. Loans (deposits) prolonged shall not be included in the statement. Data included in lines International loan projects and Government guarantee shall not be reflected in lines Businesses, Individuals, Armenian banks, Other banks and Dram repo contracts. Amounts attracted and allocated under international loan projects shall need to be reflected only in lines International loan projects of tables Average interest rates on resources attracted and Average interest rates on resources allocated, respectively. The lines International loan projects shall indicate resources attracted and allocated under all international projects ( Lincy Foundation, German-Armenian fund, Eurasia loan project, etc.). Average annual interest rate on loans granted during a week shall be calculated as follows: 21

20 Ia = (L1*I1+L2*I Lm*Im) / (L1+L2+...+Lm), where L is value of loans granted, I is annual interest rate, 1-m is volume of loans granted. Average annual interest rate on funds borrowed shall be calculated as follows: Ia = (B1*I1+B2*I Bn*In)/(B1+B2+...+Bn), where B is value of funds borrowed, I is annual interest rate, 1-n is volume of funds borrowed. Forms shall be filled out using annual interest rates. Average annual interest rate on repurchase contracts shall be calculated as follows: Ia = (R1*I1+R2*I2+...+Rn*In)/(R1+R2+...+Rn), where R is value of repurchase contracts signed, I is interest rate, 1-n is volume of transactions implemented. A separate table shall be used to list the banks and credit organizations as parties to carry out the transactions with by indicating value, term and average annual interest rate on funds attracted or allocated, by type of currency, and type of transaction (e.g. overnight, deposit, loan, repurchase contract, etc.). In this context, one year shall be considered 365 or 366 days, as calendar days. 17. Statement 18 consists of two sections. Data shall be filled out using the free cells. First section shall be used to indicate credit organization s all operations with non residents. Second section shall include data on loans and other borrowings from non residents. The statement shall be filled out by millions of Dram except for the second section s column 5 which shall indicate an appropriate currency unit, with the amount to be mentioned in full. 22

21 Each transaction shall be differentiated by currency: Armenian Dram, US Dollar, Euro, Russian Ruble, etc. All amounts expressed in foreign currency (except for data in part Liabilities of line Capital securities ) shall be translated into Dram at the settlement exchange rate for the respective currency as of the last day of the reporting quarter, except for income and expense. All lines, excluding those of Dividends, Income and expense, shall be filled out using the data on balances as of the period in review. In Assets section of the statement, lines Dividends, Income and expense shall indicate data on dividends and income received; the same lines in Liabilities section shall indicate data on dividends paid and expense made. Column Reporting period shall be used to indicate data on an accrual basis for dividends, income and expense, received and paid from the beginning of year until the last day of the reporting quarter, except for the first quarter when the required lines in column Previous period are used to indicate zero. Assets section of line Capital securities shall be used by credit organization to indicate direct and portfolio investments in equity of any non resident organization, while Liabilities section, to indicate non resident organization s direct and portfolio investments in equity of credit organization. The data in section Liabilities should correspond to data on non resident investments in credit organization, provided in Statement 10. In this context, direct investments (major participation) are the investments that exceed 10% of statutory capital; portfolio investments (small participation) are the investments that reach up to 10% of statutory capital. 23

22 Assets section of line Debt securities shall be used to indicate data on any kind of debt securities, with interest receivable, issued by non residents and acquired by credit organization. Liabilities section will indicate data on debt securities, with interest receivable, issued by credit organization and acquired by non residents. Line Short term shall include data on bonds with up to a year due for maturity, while the rest shall be recorded in line Long term. The time split into short and long terms transactions will apply also to lines Loans, o/w, overdraft and credit cards and Deposits/borrowings. Line Cash shall include data on credit organization s cash foreign currency funds. The total amount of the period in review shall correspond to the amount in respective foreign currency account on credit organization s balance sheet as of the last day of the quarter in review. Line Loans o/w, overdraft and credit cards shall be filled out as follows: Volumes of credit lines and overdrafts shall be recorded for actual balance (used part). Assets section shall indicate net loans, with interest receivable, provided by credit organization to non-residents (loans provided and repaid). Liabilities section shall indicate net loans, with interest payable, provided by non-residents to credit organization (loans provided and repaid), and term deposits, with interest payable, attracted from non-resident banks. This item shall be used to include also claims and commitments created in executing repurchase contracts. In line Loans o/w, overdraft and credit cards, an overdraft refers only to section Liabilities. 24

23 Line Deposits/borrowings shall be used to fill out similarly as in line Loans o/w, overdraft and credit cards. In addition to deposits, line Deposits/borrowings shall indicate also credit organization s bank accounts, with interest receivable. Section Liabilities shall not be used to indicate borrowing, with interest payable, from non-resident banks. Deposits indicated in line Deposits/borrowings refer only to section Assets. In Assets section, line Fees receivable/payable on services shall indicate fees receivable on services (transfers, trust transactions, conversions or other such services) provided by credit organization to non-residents; Liabilities section shall indicate fees payable on such services provided by non-residents to credit organization. For example, an Armenian credit organization A renders service to its non-resident customer. The credit organization will charge 3 million drams for the service, which will be paid by the customer within a month upon such service. Suppose, the service is rendered in the reporting quarter, while the fee is charged the next quarter. Statement will be filled out as follows: mln drams Previous period Assets Reporting period AMD USD EURO RFR Other AMD USD EURO RFR Other 6 Fees receivable/payable on services 3 Income and expense 3 Once the credit organization charges the fee of 3 million drams for the service in the next quarter, the statement shall indicate as follows: Assets mln drams 25

24 Previous period Previous period AMD USD EURO RFR Other AMD USD EURO RFR Other 6 Fees receivable/payable on services 3 Income and expense 3 3 Line Fees receivable/payable on other operations shall indicate all the operations a credit organization carries out with non-residents, and which qualify none of the above operations. For example, a credit organization sells own inventory to non-resident payment for which will be made in two months. As in previous example, the fee shall be included in section Assets of the line Fees receivable/payable on other operations and in subline Income and expense. Once paid, the fee shall be recorded only in sub-line Income and expense. Line Fees receivable/payable on other operations shall be used to include also claims and commitments created in executing repurchase contracts. The relevant lines in the statement shall be used to indicate also assets charge-offs and debts forgiven. This information will not relate to sublines Income and expense, as the income and expense referred to assets charge-offs and debts forgiven shall be recorded along with the respective instrument. The information shall be presented in US dollars, at the day s exchange rate. The transactions on asset charge-off, loss and collection shall be recorded in their net value. Detailed data relating to line Loans o/w, overdraft and credit cards, section Liabilities in Table I of the statement shall be gathered in Table II of this statement. Table II shall be filled out as follows: Column 2 shall indicate country of non resident lender. 26

25 Column 3 shall indicate non-resident lenders by segments, with following succession of letters: F covers central banks, non resident banks, international financial organizations, insurance companies, investment funds, stock exchanges and other non bank financial institutions; G covers governments (central and local); N covers non resident organizations not included in F and G (i.e. enterprises with state equity, non state enterprises as legal entity, organizations not as legal entity, and non profit-driven organizations). Column 4 shall indicate the sector of economy which has received financing from the loan attracted. This shall be filled out as per classification of sectors of economy specified in Statement 6. Columns 5, 6 shall indicate amount of loan in respective currency and an International Standards Organization s (ISO) code for currency specified in the loan contract. Column 7 shall indicate the dates of attracting the loan, in a format as follows: 25/03/98. Column 8 shall indicate the dates of repaying the loan, in a format as follows: 25/06/06. Column 9 shall indicate interest rate of the loan. If it is LIBOR + 5%, it shall be filled out as LIBOR + 5. Column 10 shall indicate balances of loans attracted as of beginning of the reporting quarter. Column 11 shall indicate installment(s) or total amount (if granted lump sum) of the loan attracted during the reporting quarter. Column 12 shall indicate repayments (if repaid by installments) of the principal amount during the reporting quarter. Lump sum repayment of the principal in the given reporting quarter shall be indicated in full. 27

26 Column 13 shall indicate accrued (payable) interest on loan in the reporting quarter. Column 14 shall indicate balances of loans attracted, and accrued payable interest as of the end of quarter. 18. Statement 19 (daily) shall be filled out by credit organizations involved in foreign exchange operations. Column Type of transaction in table FX operations shall indicate types of transactions grouped as per location of transaction and type of foreign currency. Column Type of transaction shall indicate operations on purchase and sale of foreign currency in two-digit codes. First digit shall identify place where transaction is carried out, as follows: 1. Operations between credit organizations; 2. Operations at stock exchange; 3. Cash operation within credit organization; 4. Operations in other places other than banking market. Second digit shall identify type of transaction: 1. Spot; 2. Forward; 3. Futures; 4. Swap; 5. Option For example, a code 2.3 will display a futures transaction at a stock exchange. Column Convertible currencies (buying/selling) shall be used to indicate ISO codes for respective convertible currencies (e.g. USD for US Dollar, AMD for Armenian Dram, GBP for British Pound, etc.). Once a foreign currency purchase transaction is performed, ISO code for buying foreign currency shall be indicated in numerator of column Convertible currencies (buying/selling) with indication of volume and average exchange rate of purchase. Once a foreign currency sale transaction is performed, ISO code for selling foreign currency 28

27 shall be indicated in denominator of column Convertible currencies (buying/selling) with indication of volume and average exchange rate of sale. Average exchange rates for purchase and sale of foreign currency shall be indicated as follows: a) If part of transaction (buy/sale) refers to US dollar, i.e. a foreign currency is buying or selling against US dollar, the exchange rate shall be indicated against one US dollar. For example, if Russian ruble is buying or selling against US dollar, the exchange rate will indicate 30 Russian rubles against one US dollar. Exceptions are transactions for buy and sale of British pound. Here, the exchange rate shall be indicated against one British pound. For example, if British pound is buying or selling against US dollar, the exchange rate will indicate 1.58 US dollar against one British pound. b) If US dollar is not part of transaction (buy/sale), the exchange rate shall be indicated against the currency, exchange rate of which is higher against US dollar. For example, if Swiss franc is buying or selling against Australian dollar, the exchange rate will indicate 3.35 Australian dollars against one Swiss franc. Column Location shall be used to indicate the place where the transactions are performed (stock exchange, banking market, office or agency). Column Average exchange rate shall indicate average exchange rate for the currency in the place for respective transaction (if there are some), calculated as required by Regulation 8 Foreign Exchange Regulation and Control, Chapter In Statement 20, table Credit organization s accounts shall be used to provide information on the number of accounts of credit organization as of the last day of the reporting period. These accounts shall be distinguished into 29

28 accounts established with: i) banks operating in Armenia, and ii) banks operating abroad. Column Current accounts is provided to indicate demand deposits and bank accounts established on behalf of credit organization (dram and FX denominated settlement accounts, check books, other related accounts for settlement), which were used to move the funds in the course of the last year. Column Term accounts shall indicate dram and FX denominated deposit accounts established on behalf of credit organization, which carry balances. Table Number of customers shall be used to provide data on credit organization s customers as Businesses and Individuals as of the last day of the reporting period. Customers are the businesses and individuals who have acquired right over, and/or assumed certain commitments to, an organization in performing licensed operations other than operations on safe custody of precious metals, gems, jewelry, securities, documents and other values by credit organization. Line Businesses shall be used to provide information on resident and non resident legal entities other than banks. Line Individuals shall be used to provide information on resident and non resident physical entities. Table Cash and non cash operations is divided into two columns for Cash and Non cash operations. Column Cash shall indicate value and volume of cash operations carried out by credit organization in the reporting period. Line Payments of this column shall be used to indicate value of cash resources supplied from the credit organization s vault, and number of such operations. Line Receipts shall indicate funds paid to credit 30

29 organization (delivered to credit organization s vault). Column Non cash shall indicate value and volume of non cash operations carried out by credit organization through its bank account/s, except for operations correspondent to vault, in the reporting period. Line Payments of this column shall be used to indicate value and volume of non cash payments made from credit organization s account/s to banks operating in Armenia, and their customers. Line Receipts shall indicate payments from banks operating in Armenia, and their customers to credit organization s account/s. Table Non cash transfers in Armenia shall provide data on value and volume of transfers from credit organization s bank accounts using paperbased transfers or other means/system (TELEX, Internet, bank to customer, etc.). The table shall be used also to consider transfers to a servicing bank (bank customer) or another bank (bank customer) operating in Armenia. If credit organization has presented a paperbased payment order for processing, or a credit organization is a member to Bank to Customer system, and the payment order was presented via this system, the data shall be indicated in relevant line in the table. Once payment order is presented via another means/system, line Other shall be used to fill out name of the system, and value and volume of transaction. In table Transfers abroad, the transfers shall fall into Transfers abroad via Armenian banks and Payment order presented to foreign bank direct. Table Transfers abroad via Armenian banks shall be used to fill out data on value and volume of overseas transfers via Armenian banks in the reporting period. These data shall be filled out as per presentation of instruction as a basis for transfer. 31

30 Table Payment order presented to foreign bank direct shall be used to fill out data on value and volume of payment orders presented to a bank abroad as per presentation of payment document. Payments within Armenia and abroad shall not include transfers from credit organization s account to another one. In all tables, lines Other are designed for transfers via systems not specified in tables of the statement. As such, name of, and related data on, each such system shall be indicated separately. Credit organization may use extra lines if a need rises. All data in table Operations on traveler s checks of credit organization ( ) shall be provided for the reporting period. Column Types of traveler s checks of credit organization shall indicate types of traveler s checks issued or serviced by credit organization. Column Issue shall indicate value and volume of own traveler s checks issued by credit organization to customer, as per type. Column Service shall indicate the traveler s checks (value and volume of checks) presented by customer to credit organization for payment that was honored in the reporting period. In table Issue of credit cards ( ), column Name of credit card issued shall specify the credit cards issued by credit organization. Column Number of cards issued shall be used to indicate first-column-listed credit cards, which were issued by credit organization and are in circulation. The number of credit organization s credit cards as per type shall be indicated as of the end of the reporting period considering the number of cards of credit organization issued and withdrawn from circulation in the reporting period. In table Card servers and providers ( ), column Number of card servers shall indicate the number 32

31 of organizations, which provide a card servicing through a given organization. Line Credit organization shall be used to indicate number of the organizations accountable and their branches that render a card servicing. Line Other of the first column shall be used to indicate corporate type of an organization that is not specified in the table. In table Service of cards ( ), column Name of cards serviced by organization shall be used to indicate name of the cards that the given organization can service in general. Column Cards serviced shall be used to indicate the cards specified in the first column, which were serviced by the organization. Service via POS terminals shall be distinguished into services rendered at Cash dispensers and Commercial and retail outlets. Column Cash dispenser shall indicate operations carried out via POS terminals at cash dispensers. Column Commercial and retail outlets shall indicate non cash operations by cards via POS terminals. ( ) - These data shall be provided only by credit institutions involved in universal services. 20. Statement 22 shall be used to provide information on securities issued, and investments made, by credit organization. 21. Statement 24 consists of two sections. Credit organization shall use the first table to provide statement on tangible assets (fixed assets and other tangibles, including privatized assets due to possession of collateral or other such commitments, assets not in use and other fixed assets), possessed by, and not used for business of, credit organization. 33

32 Credit organization shall use the second table to provide statement on investments in statutory capitals of banks and credit organizations. 22. Statement 28 shall be used to fill out data on the staff of credit organization. 23. Statement 30 shall be used to provide information on credit organization s adherence to prudential economic standards. CHAPTER IV. REPORTING 24. Statements, except for Statement 19, shall be reported to Statistics Department of the Central Bank within the dates specified by the Central Bank. If the day of reporting is a non working day, statement shall be reported the next business day. If no changes occurred in the data reportable in the reporting period, or no statement-related transactions effected, credit organization shall provide a notice indicating the forms not presented. Statement 19 shall be reported to Risk Management Unit of the Central Bank. 25. Statement shall be deemed reported, if its electronic versions are free of any software or mechanical defects. 26. The Central Bank officer in charge of credit organization in review may require through a notice additional information and clarification for the specific matters. Credit organization must, within a day upon such a notice (if not otherwise stated), seek to provide required clarifications and/or information. In consideration of credit organization s location, the notice may be delivered to credit organization by phone/teletype, the CBANet electronic mail or other reserve means of communication. 34

33 Such document may invite the authorized party of credit organization to Bank Supervision Department of the Central Bank for clarification and explanation on the statement involved. The notice shall be signed by head of unit, his/her deputy in charge of banking supervision, or other management concerned. CHAPTER V. PERIODS OF REPORTING 27. Monthly and quarterly statements shall be reported by the 4-th banking day (inclusive) of the month following the reporting period. 28. Annual statements shall be reported by the 20-th of the year following. If January 20 is a non working day, statements shall be reported the next business day. 29. Weekly statements shall be reported by the second business day following the reporting period. 30. In the event of actual or structural change in paid-in statutory capital, Statement 10 shall be reported not later than 30 days after change. 31. Statement 19 shall be reported in the event of implementation of FX operations. 32. Statement 20 shall not be reported by credit organizations, which do not carry out operations specified in the statement. 33. Statement 21 shall be reported not later than 10 days after the issue of securities. 34. Statements modified or newly designed by the Central Bank shall take effect three months upon release, unless the Board of the Central Bank specifies a later date. 35. Statement 19 (daily) Foreign currency operations shall be reported to Risk Management Unit of the Central Bank irrespective of the volume of transaction carried out. Transactions carried out 35