Featured Product

    BCB Issues Rules on Credit Risk and Reporting Requirements for Banks

    March 31, 2021

    BCB proposed two resolutions related to structured finance and credit derivative operations of financial institutions and finalized two resolutions on calculations under the standardized approach for credit risk and on reporting of certain risk data by banks. The final Resolution No. 83 amends Circular No. 3.809 on procedures for recognition of credit risk mitigation instruments in the calculation of risk-weighted assets under the standardized approach for credit risk; this resolution enters into force on May 01, 2021. Additionally, the final Resolution No. 84, which enters into force on May 03, 2021, relates to the reporting of exposures to market risk and interest rate risk in the banking book (IRRBB).

    According to the Resolution No. 84, financial institutions and other institutions authorized to operate by BCB under Segments 1, 2, 3 or 4 (S1/S2/S3/S4) must prepare and send to BCB the information related to these exposures. This information related to exposures must be calculated using the base date of the last working day of each month and must be sent monthly by the leading institution of each conglomerate, on a consolidated basis, and by the other BCB-authorized institutions that do not belong to conglomerates

    Out of the two proposals issued recently by BCB, one contains the draft the National Monetary Council (CMN) resolution that provides for credit derivative operations in the country by institutions authorized to operate by BCB. The second proposal is for a CMN resolution that provides for conditions for the issuance of the Structured Transactions Certificate by the specified financial institutions. The two proposals are aimed to update the regulatory requirements and remove barriers to the realization of credit derivatives and the issuance of Structured Transactions Certificate referenced to credit risk, to improve the credit risk management tools available to the domestic financial market. The comment period for both the consultations ends on May 10, 2021.

     

    Related Links (in Portuguese)

    Comment Due Date: May 10, 2021

    Effective Date: May 01, 2021/May 03, 2021

    Keywords: Americas, Brazil, Banking, Credit Risk, Market Risk, IRRBB, Basel, Derivatives, Standardized Approach, Regulatory Capital, Reporting, BCB

    Featured Experts
    Related Articles
    News

    EBA Guide to Monitor Threshold for Intermediate Parent Undertakings

    The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).

    July 28, 2021 WebPage Regulatory News
    News

    PRA Finalizes Approach to Supervision of International Banks

    In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.

    July 26, 2021 WebPage Regulatory News
    News

    FCA Issues PS21/9 on Implementation of Investment Firms Regime

    The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.

    July 26, 2021 WebPage Regulatory News
    News

    EBA Proposes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.

    July 26, 2021 WebPage Regulatory News
    News

    IOSCO Proposes Recommendations on ESG Ratings and Data Providers

    The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.

    July 26, 2021 WebPage Regulatory News
    News

    ESMA Group Issues Recommendations on RFR Switch in Interdealer Market

    The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.

    July 26, 2021 WebPage Regulatory News
    News

    EC to Defer Application of SFDR Standards Till July 2022

    The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.

    July 23, 2021 WebPage Regulatory News
    News

    EIOPA Consults on Reporting and Disclosures Under Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) proposed to amend the supervisory statement on supervision of run-off undertakings that are subject to Solvency II regulation.

    July 23, 2021 WebPage Regulatory News
    News

    BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance

    The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.

    July 22, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Proportionality Assessment Methodology

    The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.

    July 22, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7295