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
OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
EBA Proposes Standards to Support Secondary NPL Markets
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
EBA Issues Standards for Crowdfunding Service Providers Under ECSPR
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.
EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.
EC Mandates ESAs to Propose Amendments to SFDR Technical Standards
The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.
EBA Examines Supervisory Practices, Issues Deposits Reporting Template
The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),
US Agency Publications Address Basel, Reporting, and CECL Developments
The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances
SEC Extends Comment Period on Climate Risk Disclosures
The U.S. Securities and Exchange Commission (SEC) looks set to intensify focus on crypto-assets and cyber risk and extended the comment period on the proposed rules to enhance and standardize climate-related disclosures for investors.
