BCB Maintains CCyB at 0%, Initiates First Cycle of Regulatory Sandbox
BCB announced that the Financial Stability Committee decided to maintain the countercyclical capital buffer (CCyB) for Brazil at 0%, at least until the end of 2021. In addition, in April, the restoration of the "Additional Principal Capital Conservation portion" is expected to begin. In another development, BCB initiated the enrollment of the regulatory sandbox, with registration process ending on March 19, 2021.
In this first cycle of its regulatory sandbox, BCB will prioritize projects that deal with topics such as sustainable finance, financial inclusion, fostering credit for microentrepreneurs and small businesses, open banking, and rural credit. BCB will choose about 10 to 15 projects in this cycle, which will last for one year and may be extended for an equal period. The analysis of the proposals takes place between March 22 and June 25, 2021, a term that may be extended by up to 90 days, if the number of applicants is equal to or greater than twice the number of places. Activities are slated to start five working days after the publication of the final result. At the end of the cycle, if the selected projects have demonstrated benefits, with an appropriate level of associated risk, for the National Financial System (SFN) and for the Brazilian Payment System (SPB), BCB may authorize and, if necessary, regulate, the supply of products and services on a permanent basis.
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Keywords: Americas, Brazil, Banking, Regulatory Sandbox, Fintech, Regtech, Sustainable Finance, Open Banking, CCB, Regulatory Capital, Basel, BCB
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