Featured Product

    BCB Maintains Countercyclical Capital Buffer for Banks at 0%

    November 20, 2020

    At its meeting in November 2020, the Financial Stability Committee of BCB decided to keep the countercyclical capital buffer for Brazil (CCyB or ACCPBrasil) at 0%. The Committee considers it appropriate to maintain the buffer at 0% throughout 2021. The Committee will meet again on March 02, 2021. In addition, BCB is consulting on a set of rules that seek to harmonize the prudential treatment applicable to payment transactions, whether carried out by a payment institution or by a financial institution. The proposal provides for the gradual implementation of the new rules, with full adoption in January 2025. The consultation is open until January 26, 2021.

    According to the proposal, the capital requirement for payment activities will have the same methodology, regardless of whether it is determined by a Type 1, Type 2, or Type 3 conglomerate. This methodology consists of applying a percentage to the average volumes of payment transactions carried out in the last 12 months. The only exception is Type 1 institutions in Segment 1. For the Type 2 conglomerate, the proposal also redefines the concept of regulatory capital by replacing the current definition of adjusted shareholders' equity by profit and loss accounts with the new concept of Payment Institution Reference Equity (PRIP). The rules for calculating the PRIP will ensure greater quality for the capital of a payment institution, to allow the most effective fulfillment of its essential function, which is to absorb unexpected losses. Additionally, the Type 2 conglomerate will now have a capital requirement for exposures arising from activities subject to credit or operational risk. Such requirement will be calculated according to the same methodology applicable to the institution included in Segment 5 (S5).

     

    Related Links (in Portuguese)

    Comment Due Date: January 26, 2021

    Keywords: Americas, Brazil, Banking, PMI, CCyB, ACCP, Regulatory Capital, Basel, BCB

    Featured Experts
    Related Articles
    News

    BIS and Central Banks Experiment with GenAI to Assess Climate Risks

    A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe

    March 20, 2024 WebPage Regulatory News
    News

    Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures

    Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.

    March 18, 2024 WebPage Regulatory News
    News

    Singapore to Mandate Climate Disclosures from FY2025

    Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies

    March 18, 2024 WebPage Regulatory News
    News

    SEC Finalizes Climate-Related Disclosures Rule

    The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.

    March 07, 2024 WebPage Regulatory News
    News

    EBA Proposes Standards Related to Standardized Credit Risk Approach

    The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU

    March 05, 2024 WebPage Regulatory News
    News

    US Regulators Release Stress Test Scenarios for Banks

    The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).

    February 28, 2024 WebPage Regulatory News
    News

    Asian Governments Aim for Interoperability in AI Governance Frameworks

    The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.

    February 28, 2024 WebPage Regulatory News
    News

    EBA Proposes Operational Risk Standards Under Final Basel III Package

    The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.

    February 26, 2024 WebPage Regulatory News
    News

    EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS

    The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.

    February 23, 2024 WebPage Regulatory News
    News

    ECB to Expand Climate Change Work in 2024-2025

    Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.

    February 23, 2024 WebPage Regulatory News
    RESULTS 1 - 10 OF 8957