Featured Product

    BCB Communicates on Supervision of Open Banking Activities

    April 24, 2019

    BCB published a communication regarding the supervision of open banking model in Brazil. The collegiate Board of the Central Bank of Brazil, in a meeting held on April 23, 2019, approved the fundamental requirements for implementation of the open banking system in Brazil. The Open Banking initiative is expected to be implemented in the country from the second half of 2020.

    BCB considers open banking to be sharing of certain information by financial institutions and other authorized institutions at the discretion of its clients. The scope of the model to be adopted in Brazil should cover financial institutions, payment institutions, and other institutions authorized to operate by BCB, including. The institutions should provide at least the following metrics:

    • Data on products and services offered by participating institutions (location of service points, product characteristics, contractual terms and conditions and financial costs, among others)
    • Customer registration data (name, affiliation, address, among others)
    • Transactional customer data (data related to deposit accounts, credit operations, other products and services contracted by customers, among others)
    • Payment services (initialization of payment, transfers of funds, payments of products and services, among others)

    With regard to the process of implementation of Open Banking, the publication of normative acts and self-regulation initiatives are foreseen. As for normative acts, BCB expects to submit a public consultation in the second half of 2019, with the proposals covering several aspects such as definition, scope, responsibilities, minimum requirements for operation of the model, internal controls, risk management, and minimum conditions for the contractual relationship that may be established between authorized institutions and unauthorized third parties, in addition to the implementation schedule. As per the BCB communication, the implementation of the model will occur in phases established as per a schedule. First, the institutions that are members of the prudential conglomerates of segments 1 (S1) and 2 (S2) will be required to participate. Subsequently, this obligation may be extended to the other institutions, at the discretion of the Central Bank of Brazil. Furthermore, BCB expects that the participating institutions will be responsible for technological standardization and operational procedures, safety standards and certificates, and the implementation of interfaces, all in accordance with the regulations.

     

    Related Link (in Portugese): BCB Communiqué

     

    Keywords: Americas, Brazil, Banking, PMI, Open Banking, Risk Management, Internal Controls, BCB

    Related Articles
    News

    OCC Revises Minimum Threshold for Banks to Conduct Stress Tests

    OCC issued the final rule that amends its company-run stress testing requirements under the 12 CFR 46 in Code of Federal Regulations.

    October 10, 2019 WebPage Regulatory News
    News

    US Agencies Update Management Interlock Rules Under DIMIA

    US Agencies (FDIC, FED, and OCC) issued a final rule that increases the thresholds in the major assets prohibition for management interlocks for purposes of the Depository Institution Management Interlocks Act (DIMIA).

    October 10, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Rules to Closely Match Bank Risk Profiles

    US Agencies (OCC, FED, and FDIC) finalized rules that tailor the regulations for domestic and foreign banks to more closely match their risk profiles.

    October 10, 2019 WebPage Regulatory News
    News

    CPMI-IOSCO and FSB on Governance Arrangements for OTC Derivatives

    CPMI and IOSCO published a report that identifies key criteria, functions, and bodies for the governance arrangements.

    October 09, 2019 WebPage Regulatory News
    News

    EIOPA Launches Field Test on Templates Under 2020 Solvency II Review

    EIOPA, as part of the 2020 Solvency II reporting and disclosure review, launched a field test on the revised and newly proposed reporting templates.

    October 09, 2019 WebPage Regulatory News
    News

    US Agencies Adopt Rule on Appraisals for Real Estate Transactions

    US Agencies (FDIC, FED, and OCC) adopted the final rule to amend regulations requiring appraisals of real estate for certain transactions

    October 08, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Amendments to Simplify Volcker Rule

    US Agencies (CFTC, FDIC, FED, OCC, and SEC) finalized amendments to the regulations implementing section 13 of the Bank Holding Company Act, also known as the Volcker Rule.

    October 08, 2019 WebPage Regulatory News
    News

    EC Report Explores Application and Challenges of Blockchain Technology

    The Joint Research Center of EC published a report exploring the challenges and impact of distributed ledger technologies.

    October 08, 2019 WebPage Regulatory News
    News

    BIS and SNB Sign Agreement on Innovation Hub Center in Switzerland

    BIS and SNB signed an operational agreement on the BIS Innovation Hub Center in Switzerland.

    October 08, 2019 WebPage Regulatory News
    News

    ECB Issues Results of Sensitivity Analysis of Liquidity Risk for Banks

    ECB published results of 2019 stress test on sensitivity analysis of liquidity risk.

    October 07, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3958