The Central Bank of Brazil (BCB) issued updates on the rule for standardized approach for credit risk, the countercyclical capital buffer (CCyB) rate for banks, and the projects selected in the Laboratory for Financial and Technological Innovations Laboratory (LIFT).
The key highlights of the updates are outlined:
- BCB published Resolution No. 187 to amend Circular No. 3,644, which establishes procedures for calculating the portion of risk-weighted assets (RWA) referring to exposures to credit risk, subject to the calculation of the capital requirement using a standardized approach. This Resolution enters into force on the date of its publication, which is February 25, 2022.
- The Financial Stability Committee of BCB decided to maintain the countercyclical capital buffer (CCyB) for banks at 0%.
- BCB published executive summaries of the ten projects selected in the Laboratory for Financial and Technological Innovations Laboratory (LIFT). These projects are related to open banking, digital payments, customer empowerment, digital credit operation, and digital wallet. The LIFT aims to promote technological innovation research projects for the financial industry and the supervisory and regulatory activities of BCB.
Related Links (in Portuguese)
- Resolution on Credit Risk Approach
- Press Release on CCyB
- Press Release on LIFT
- Summaries of Projects in LIFT
Keywords: Americas, Brazil, Banking, CCyB, Regulatory Capital, Basel, Credit Risk, Risk Weighted Assets, LIFT, Regulatory Sandbox, Open Banking, Regtech, Suptech, Fintech, BCB
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