Featured Product

    BCB Consults on Regulation for Implementation of Open Banking System

    December 06, 2019

    BCB published a consultation on the regulation for implementation of open banking system for financial and other institutions authorized to operate by BCB. The proposals aim to define, among other things, the minimum scope of participating institutions; data and services covered by open banking; and the aspects related to sharing requirements, responsibilities, the agreement between participants, and the implementation schedule. Interested parties are requested to submit comments by January 31, 2020.

    For the purpose of data sharing, the largest financial institutions, in the case of those with a size equal to or greater than 1% of GDP or that carry out relevant international activity, members of segments S1 and S2, according to prudential regulation, are obligated to participate. In turn, other institutions authorized by BCB may participate, provided that they have a dedicated interface for sharing, as a data donor institution, and register their participation in a participant repository defined in the agreement between the participants. Among other practical applications, open banking favors the emergence of business models that make it easier to compare products and services available in the financial system, helping to create a more competitive and efficient environment for offering financial services, including credit and payment operations. In Brazil, the open banking model will be implemented in four stages: 

    • The first stage involves data sharing of products and services offered by financial institutions. Open Banking should share information about access channels and the characteristics of their products and services related to deposit or payment accounts, as well as credit operations, such as their prices and target audience. 
    • The second stage involves customer registration and transaction data. On the prior consent of a customer, a financial institution will share the registration and transaction data related to deposit and payment accounts as well as credit transactions.
    • The third stage, with the prior consent of the client, will involve services of referral of credit proposal through correspondents in the country and initialization of payments. The latter will allow the payment transaction instruction, at the customer's request, in respect of a deposit or payment account through an institution that will not necessarily participate in the financial settlement of the transaction.
    • In the fourth phase, data will be shared from other products and services, such as investments and insurance.

     

    Related Links (in Portuguese)

    Comment Due Date: January 31, 2020

    Keywords: Americas, Brazil, Banking, Open Banking, Data Sharing, Fintech, BCB

    Related Articles
    News

    PRA Consults on Implementation of Certain Provisions of CRD5

    PRA, via the consultation paper CP12/20, proposed changes to its rules, supervisory statements, and statements of policy to implement certain elements of the Capital Requirements Directive (CRD5).

    July 31, 2020 WebPage Regulatory News
    News

    EIOPA Report Identifies Key Financial Stability Risks for Insurers

    EIOPA published the financial stability report that provides detailed quantitative and qualitative assessment of the key risks identified for the insurance and occupational pensions sectors in the European Economic Area.

    July 30, 2020 WebPage Regulatory News
    News

    EBA Publishes Risk Dashboard for First Quarter of 2020

    EBA published its risk dashboard for the first quarter of 2020 together with the results of the risk assessment questionnaire.

    July 30, 2020 WebPage Regulatory News
    News

    EBA Issues Updates on Stress Test Exercise for Banks in EU

    EBA announced that the next stress testing exercise is expected to be launched at the end of January 2021 and its results are to be published at the end of July 2021.

    July 30, 2020 WebPage Regulatory News
    News

    PRA Proposes Guidance Related to Matching Adjustment under Solvency II

    PRA published the consultation paper CP11/20 that sets out its expectations and guidance related to auditors’ work on the matching adjustment under Solvency II.

    July 30, 2020 WebPage Regulatory News
    News

    MAS Issues Guidance on Dividend Distributions by Banks

    MAS published a statement guidance on dividend distribution by banks.

    July 30, 2020 WebPage Regulatory News
    News

    APRA Updates Guidance on Capital Management for Banks

    APRA updated its capital management guidance for banks, particularly easing restrictions around paying dividends as institutions continue to manage the disruption caused by COVID-19 pandemic.

    July 29, 2020 WebPage Regulatory News
    News

    FSB Report Reviews Macro-Prudential Framework and Tools in Germany

    FSB published a report that reviews the progress on data collection for macro-prudential analysis and the availability and use of macro-prudential tools in Germany.

    July 29, 2020 WebPage Regulatory News
    News

    EBA Urges Firms to Finalize Preparations for End of Brexit Transition

    EBA issued a statement reminding financial institutions that the transition period between EU and UK will expire on December 31, 2020; this will end the possibility for the UK-based financial institutions to offer financial services to EU customers on a cross-border basis via passporting.

    July 29, 2020 WebPage Regulatory News
    News

    SRB on Operational Continuity in Resolution and FMI Contingency Plans

    SRB published guidance on operational continuity in resolution and financial market infrastructure (FMI) contingency plans.

    July 29, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5604