Regulatory Alerts2020-04-30 | Resolução CMN 4814CMN Resolution No. 4814 - Amends Resolution No. 4,677 of July 31, 2018, which establishes maximum exposure limits per client and maximum limits for concentrated exposures
The Central Bank of Brazil, acting on behalf of the National Monetary Council, amends Resolution No. 4,677 to update regulations regarding maximum exposure limits and concentrated exposures for financial institutions. The amendments introduce specific conditions for interfinancial transfers within cooperative credit systems, requiring unconditional and unilateral collection prerogatives in favor of the transferring institution. Additionally, the resolution clarifies risk recognition protocols, stipulating that cooperative banks must treat the end borrower as the counterparty for exposure limits when specific risk mitigation conditions are met.
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