The Central Bank of Brazil published a public consultation (55/2017) on direct credit and lending operations between entities. This consultation, which is part of the BC+ Agenda, also governs the execution of lending operations between entities through an electronic platform. Comments must be submitted by November 17, 2017.
The new rules are aimed at companies that employ technology-intensive credit solutions, also known as "credit Fintechs." These financial institutions will be subject to proportionality in terms of regulation, with respect to size and risk profile, and the resulting simplified authorization procedures. This is part of the Central Bank's strategy to increase competition, foster credit, and reduce costs to the final borrower. The regulation of credit operations through electronic platforms tends to increase the legal certainty of contracts and may contribute to increasing efficiency and competition in the credit market, with the potential to reduce the banking spread and with a positive impact on the real economy, including with regard to credit to small and medium-size enterprises.
Comment Due Date: November 17, 2017
Keywords: Americas, Brazil, Banking, Fintech, Direct Credit, Consultation, Central Bank of Brazil
Previous ArticleEBA Publishes Methodology for the 2018 EU-Wide Stress Test
The Hong Kong Monetary Authority (HKMA) revised the Supervisory Policy Manual module CG-5 that sets out guidelines on a sound remuneration system for authorized institutions.
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).
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.
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
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.
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.
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.
The European Central Bank (ECB) published a paper as well as an article in the July Macroprudential Bulletin, both of which offer insights on the assessment of the impact of Basel III finalization package on the euro area.
The International Swaps and Derivatives Association (ISDA) published a paper that explores the impact of the Fundamental Review of the Trading Book (FRTB) on the trading of carbon certificates.
The Prudential Regulation Authority (PRA) published the remuneration policy self-assessment templates and tables on strengthening accountability.