Regulatory Alerts2020-06-23 | Circular 4030Circular No. 4030 — Amends Circular No. 3,809 of August 25, 2016, Establishing Procedures for Recognizing Mitigating Instruments in RWA Calculations for Credit Risk Exposures
The Board of Directors of the Central Bank of Brazil issued Circular No. 4030 to amend Circular No. 3,809 by introducing Article 29-A. This amendment mandates a 35% Risk Weighting Factor (FPR) for exposures to Time Deposits with Special Guarantee (DPGE) held by FGC member financial institutions. The regulation applies this factor to the total credit value of the holder against the same institution, subject to a maximum limit of R$400,000,000.00. The circular entered into force on the date of its publication.
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