BCB announced that the Financial Stability Committee decided to maintain the countercyclical capital buffer (CCyB) for Brazil at 0%, at least until the end of 2021. In addition, in April, the restoration of the "Additional Principal Capital Conservation portion" is expected to begin. In another development, BCB initiated the enrollment of the regulatory sandbox, with registration process ending on March 19, 2021.
In this first cycle of its regulatory sandbox, BCB will prioritize projects that deal with topics such as sustainable finance, financial inclusion, fostering credit for microentrepreneurs and small businesses, open banking, and rural credit. BCB will choose about 10 to 15 projects in this cycle, which will last for one year and may be extended for an equal period. The analysis of the proposals takes place between March 22 and June 25, 2021, a term that may be extended by up to 90 days, if the number of applicants is equal to or greater than twice the number of places. Activities are slated to start five working days after the publication of the final result. At the end of the cycle, if the selected projects have demonstrated benefits, with an appropriate level of associated risk, for the National Financial System (SFN) and for the Brazilian Payment System (SPB), BCB may authorize and, if necessary, regulate, the supply of products and services on a permanent basis.
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Keywords: Americas, Brazil, Banking, Regulatory Sandbox, Fintech, Regtech, Sustainable Finance, Open Banking, CCB, Regulatory Capital, Basel, BCB
APRA issued a letter on the loss-absorbing capacity (LAC) requirements for domestic systemically important banks (D-SIBs) and published a discussion paper, along with the proposed the prudential standards on financial contingency planning (CPS 190) and resolution planning (CPS 900).
The European Commission (EC) launched a call for evidence, until March 18, 2022, as part of a comprehensive review of the macro-prudential rules for the banking sector under the Capital Requirements Regulation (CRR) and Directive (CRD IV).
The Financial Stability Board (FSB) published a report that sets out good practices for crisis management groups.
The Australian Prudential Regulation Authority (APRA) found that Heritage Bank Limited had incorrectly reported capital because of weaknesses in operational risk and compliance frameworks, although the bank did not breach minimum prudential capital ratios at any point and remains well-capitalized.
The Office of the Superintendent of Financial Institutions (OSFI) released the annual report for 2020-2021.
Through a letter addressed to the banking sector entities, the Office of the Superintendent of Financial Institutions (OSFI) announced deferral of the domestic implementation of the final Basel III reforms from the first to the second quarter of 2023.
EIOPA recently published a letter in which EC is informing the European Parliament and Council that it could not adopt the set of draft regulatory technical standards for disclosures under the Sustainable Finance Disclosure Regulation (SFDR) within the stipulated three-month period, given their length and technical detail.
The Financial Conduct Authority (FCA) published the third in a series of policy statements that set out rules to introduce the UK Investment Firm Prudential Regime (IFPR), which will take effect on January 01, 2022.
The Australian Prudential Regulation Authority (APRA) published, along with a summary of its response to the consultation feedback, an information paper that summarizes the finalized capital framework that is in line with the internationally agreed Basel III requirements for banks.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) issued a consultative report focusing on access to central counterparty (CCP) clearing and client-position portability.