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    BCB Updates Address Aspects of Basel Capital and Open Finance

    May 26, 2022

    The Central Bank of Brazil (BCB) issued updates on the rule for standardized approach for credit risk, the countercyclical capital buffer (CCyB) rate for banks, and the joint resolution on interoperability in open finance.

    Below are the key highlights of the recent updates:

    • BCB published Resolution No. 229, which establishes procedures for calculating the portion of risk-weighted assets (RWA) referring to exposures to credit risk, subject to the calculation of the capital requirement using a standardized approach. This Resolution enters into force on January 01, 2023.
    • The Financial Stability Committee of BCB decided to maintain the countercyclical capital buffer (CCyB) for banks at 0%.
    • The regulatory and supervisory bodies of the financial and insurance market in Brazil published Joint Resolution No. 5/2022, which provides for interoperability in open finance. The standard was defined jointly by the Superintendence of Private Insurance (SUSEP) and the Central Bank of Brazil (BCB) and approved and published by BCB, the National Monetary Council (CMN), and the National Council of Private Insurance (CNSP). The publication of the Joint Resolution brings greater clarity and rules for interoperability within the scope of open finance. This interoperability will allow standardized data sharing, with customer consent, in a safe, agile and accurate way, between banks, payment institutions, credit unions, insurance companies, open supplementary pension entities, capitalization companies, and other institutions authorized to work by BCB and SUSEP. This Joint Resolution enters into force on January 02, 2023.

     

    Related Links (in Portuguese)

     

    Keywords: Americas, Brazil, Banking, CCyB, Basel, Regulatory Capital, Credit Risk, Risk Weighted Assets, Open Banking, Regtech, Standardized Approach, BCB

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