BCB announced timeline and specifications for the first project cycle of the regulatory sandbox environment. In this regard, BCB approved a Resolution that deals with the requirements for establishment and execution of the first cycle of the controlled test environment for financial and payment innovations (Regulatory Sandbox); the Resolution also addresses the procedures and requirements applicable to the classification and authorization for participation in the test environment. Entities interested in participating in this cycle can register from February 22, 2021 to March 19, 2021 through the BCB Digital Protocol system. The period of selection and authorization of participants in this cycle will be from March 22, 2021 to June 25, 2021.
The first cycle will be limited to ten participants, though this number can be increased by up to 50% after analyzing the innovative projects. In addition, projects will be analyzed according to their degree of maturity, innovation, magnitude of risks, technical-operational capacity, and governance structure of the entity interested in the development of solutions. According to the BCB Regulation director, Otávio Damaso. "The proposals will be evaluated according to the strategic priorities defined by BCB with a view to improving services and possibilities in the National Financial and Payments systems." BCB listed the following themes as priorities:
- Fostering sustainable finance
- Solutions for foreign-exchange market, open banking, Pix, rural credit market, and increasing competition in National Financial and Payments systems
- Fostering credit for microentrepreneurs and small businesses and fostering capital market through mechanisms of synergy with the credit market
- Financial and payment solutions with potential effects of stimulating financial inclusion
Related Links (in Portuguese)
Keywords: Americas, Brazil, Banking, Regulatory Sandbox, Fintech, Sustainable Finance, Regtech, ESG, Open Banking, Credit Risk, BCB
Previous ArticleACPR Implements Updates Related to FINREP and SBP Reporting
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.