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

    BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks

    The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.

    March 13, 2023 WebPage Regulatory News
    News

    OSFI Finalizes on Climate Risk Guideline, Issues Other Updates

    The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.

    March 12, 2023 WebPage Regulatory News
    News

    BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending

    BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.

    March 03, 2023 WebPage Regulatory News
    News

    HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks

    The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.

    March 02, 2023 WebPage Regulatory News
    News

    BCBS Report Examines Impact of Basel III Framework for Banks

    The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.

    February 28, 2023 WebPage Regulatory News
    News

    PRA Consults on Prudential Rules for "Simpler-Regime" Firms

    Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.

    February 28, 2023 WebPage Regulatory News
    News

    DNB Publishes Multiple Reporting Updates for Banks

    DNB, the central bank of Netherlands, updated the list of additional reporting requests and published additional data quality checks and XBRL-Formula linkbase documents for the first quarter of 2023.

    February 28, 2023 WebPage Regulatory News
    News

    NBB Sets Out Climate Risk Expectations, Issues Reporting Updates

    The National Bank of Belgium (NBB) published a communication on climate-related and environmental risks, issued an update on XBRL reporting

    February 24, 2023 WebPage Regulatory News
    News

    EBA Updates Address Securitization Standards and DGS Guidelines

    The European Banking Authority (EBA) published the final draft of the regulatory technical standards that set out conditions for assessment of homogeneity of the underlying exposures in simple, transparent, and standardized (STS) securitizations.

    February 21, 2023 WebPage Regulatory News
    News

    FSB Publishes Letter to G20, Sets Out Work Priorities for 2023

    The Financial Stability Board (FSB) published a letter intended for the G20 Finance Ministers and Central Bank Governors, highlighting the work that FSB will take forward under the Indian G20 Presidency in 2023

    February 20, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8793