Circular 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, in a session held on June 10, 2020, based on the provisions of Articles 9, 10, item IX, and 11, item VII, of Law No. 4,595 of December 31, 1964, and Articles 3, paragraph 2, and 15 of Resolution No. 4,193 of March 1, 2013,

R E S O L V E:

Art. 1º Circular No. 3,809 of August 25, 2016, shall be amended as follows:

“Art. 29-A. A Risk Weighting Factor (FPR) of 35% (thirty-five percent) must be applied to the exposure to Time Deposit with Special Guarantee (DPGE) of the Credit Guarantee Fund (FGC) when the holder of the deposit is a financial institution authorized to operate by the Central Bank of Brazil and associated with the FGC.

Sole paragraph. The FPR referred to in the main text must be applied to the total value of the holder's credits against the same institution, respecting the maximum limit of R$400,000,000.00 (four hundred million reais) for the total of the credits.” (New)

Art. 2º This Circular enters into force on the date of its publication.

Otávio Ribeiro Damaso Director of Regulation