BCB to Start First Cycle of Regulatory Sandbox
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 Article
ACPR Implements Updates Related to FINREP and SBP ReportingRelated Articles
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.
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.
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.
US Agencies Propose Changes to Call Reports and Instructions
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
PRA Finalizes Rulebook Definition of Higher Paid Material Risk-Taker
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
EBA Examines Asset Encumbrance in Banking Sector
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.
EBA Publishes Methodological Guide to Mystery Shopping
The European Banking Authority (EBA) published a methodological guide to mystery shopping.
APRA Issues Update on Capital Reform Policy Settings for Banks
The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.
CPMI-IOSCO Assess Continuity Planning of Market Infrastructures
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.
ESMA Responds to Proposal Related to Sustainability Standards Board
The European Securities and Markets Authority (ESMA) has responded to the IFRS consultation on targeted amendments to the IFRS Foundation constitution to accommodate an International Sustainability Standards Board (ISSB) to set IFRS Sustainability Standards.
