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 Single Rulebook Q&A: Second Update for November 2017
EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.
FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).
APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.
BCBS and FSB published a report on supervisory issues associated with benchmark transition.
IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.
ESMA updated the reporting manual on the European Single Electronic Format (ESEF).
EBA published a statement on resolution planning in light of the COVID-19 pandemic.
BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework
ECB published a guideline (2020/97), in the Official Journal of European Union, on the definition of materiality threshold for credit obligations past due for less significant institutions.
FED temporarily revised the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes in response to the COVID-19 pandemic.