BCB Normative Instruction No. 434 — Amends BCB Normative Instruction No. 244 Regarding Global Systemic Importance Assessment (IAISG) Information Submission

BCB NORMATIVE INSTRUCTION NO. 434, OF DECEMBER 4, 2023

Amends
BCB Normative Instruction No. 244, of March 21, 2022, which consolidates the procedures for the submission of information for the assessment of global systemic importance (IAISG), as provided for in BCB Resolution No. 171, of December 9, 2021.

The Head of the Financial System Monitoring Department (Desig), in the exercise of the authority conferred upon him by art. 23, item I, letter “a”, of the Internal Regulations of the Central Bank of Brazil, annexed to BCB Resolution No. 340, of September 21, 2023, based on art. 85, item I, letter “b”, of the aforementioned Regulations, and having regard to the provisions of BCB Resolutions Nos. 171, of December 9, 2021, and 357, of November 28, 2023,

R E S O L V E S:

Art.
1º The Annex to BCB Normative Instruction No. 244, of March 21, 2022, published in the Official Gazette of the Union (DOU) on March 22, 2022, Section 1, p. 89/90, shall enter into force with the following alteration:

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Data base: December 31, except as provided for in items I, III and IV and IV-A of art. 12 and XII of art. 16 of BCB Resolution No. 171, of 2021, the information for which must correspond to the calendar year.

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

GILNEU FRANCISCO
ASTOLFI VIVAN

NOTE

1.                BCB Resolution No. 171, of December 9, 2021, established the obligation for  
   

financial institutions to calculate and forward to this Autarchy the information for the assessment of global systemic importance (IAISG). BCB Normative Instruction (IN BCB) No. 244, of March 21, 2022, in turn, consolidates the procedures for the annual submission of IAISG through document code 1200.

2.                The annual submission of IAISG results from Brazil’s participation in the  
   

international effort coordinated by the Financial Stability Board (FSB) and the Basel Committee on Banking Supervision (BCBS), to mitigate the effects resulting from the presence of globally systemically important banks (G-SIBs).

3.                On March 30, 2023, the BCBS published the document “Various technical  
   

amendments and FAQs”[1], introducing changes to the calculation formula for the “Trading Volume” indicator and in table GSIB1, effective from the data base of December 31, 2023. The main update of this document involves the replacement of the indicator “Trading Volume” by the average of the sub-indicators “Fixed Income Trading Volume” and “Other Trading Volume”. To incorporate such change, the formula for the “Substitution” indicator, contained in the main paragraph of art. 12 of BCB Resolution No. 171, of 2021, was altered effective from the data base of December 31, 2023.

4.                In view of the issuance of BCB Resolution No. 357, of November 28, 2023, which  
   

amended BCB Resolution No. 171, of 2021, this BCB Normative Instruction makes the following alteration to the Annex to IN BCB No. 244, of March 21, 2022:

I - inclusion of the indicators “Fixed Income Trading Volume” and “Other Trading Volume” in the information that must consider the calendar year as the data base.

5.                Decree No. 10.139, of November 28, 2019, establishes as a rule that the  
   

entry into force of normative acts shall always occur on the first day of the month or on its first business day, with a minimum interval for producing effects of one week after its publication. Considering that BCB Resolution No. 357, of 2023, entered into force on November 28, 2023, altering the formula used in the calculation of IAISG, it is necessary, based on the prerogative established in the sole paragraph of art. 4º of the aforementioned decree, that this Normative Instruction enters into force on the date of its publication, so that the alterations are valid from the data base of December 31, 2023.

6.                Decree No. 10.411, of June 30, 2020, regulates the carrying out of regulatory impact analysis (RIA) as a prerequisite to the issuance of a normative act.  
   

However, in its article 4º, the aforementioned decree establishes the hypotheses for waiver of the carrying out of RIA. This IN BCB falls within the hypotheses provided for in items II, normative act intended to regulate rights or obligations defined in a hierarchically superior norm that does not allow, technically or legally, different regulatory alternatives; III, normative act considered to have low impact; and VI, normative act intended to maintain convergence to international standards.

7.                Considering that the alteration hereby proposed aims to adapt IN BCB No. 244, of 2022, to the issuance of  
   

BCB Resolution No. 357, of 2023, I understand that this IN BCB falls within item II of art. 4º of Decree 10.411, of 2020, as the Central Bank must establish a procedure for the submission of IAISG according to the new calculation methodology, maintaining alignment with international recommendations, which also justifies its classification under item III of art. 4º of the aforementioned Decree. Furthermore, as such information is submitted by institutions through document code 1200, it was concluded that the most effective implementation approach in terms of costs would be the updating of the indicators of this document, which confirms the classification under item III of art. 4º of the aforementioned Decree.

8.                Thus, based on items II, III and VI of art. 4º of Decree No. 10.411, of 2020,  
   

I understand that the issuance of this IN BCB is exempt from the carrying out of RIA.

GILNEU FRANCISCO
ASTOLFI VIVAN

Financial System Monitoring
Department (Desig)

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[1] Available at https://www.bis.org/bcbs/publ/d547.pdf.

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