BCB Resolution No. 107 — Amends Circular No. 3,809 of August 25, 2016, Establishing Procedures for Recognizing Mitigating Instruments in the Calculation of Risk-Weighted Assets for Credit Risk Exposures Under the Standardized Approach

BCB RESOLUTION
NO. 107, OF JUNE 17, 2021

Amends Circular No. 3,809, of August 25, 2016, which establishes the procedures for the recognition of mitigating instruments in the calculation of the risk-weighted assets (RWA) portion related to credit risk exposures subject to the calculation of capital requirement through the standardized approach (RWACPAD).

The Collegiate Board of the Central Bank of Brazil, in a session held on June 17, 2021, 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,

RESOLVES:

Article 1. Circular No. 3,809, of August 25, 2016, shall enter into force with the following alterations:

“Article 30.
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Paragraph 2. When the coverage limitation for the default supported by the lender institution’s portfolio fund (stop-loss) becomes lower than the volume of operations overdue by more than 90 (ninety) days in the portfolio, the original Risk Factor (FPR) of each borrower must be applied, observing item “d” of paragraph I of the main text.

Paragraph 3. Item I of the main text includes the guarantees provided under the following government programs:

I - Emergency Program for Access to Credit (PEAC), established by Law No. 14,042, of August 19, 2020;

II - Guarantee Program for Critical Sectors (PGSC), established by Law No. 14,148, of May 3, 2021; and

III - National Program for Support of Microenterprises and Small Businesses (Pronampe), established by Law No. 13,999, of 2020, when the conditions of Article 27-A are not met.” (NR)

Article 2. This Resolution enters into force on the date of its publication.

Otávio
Ribeiro Damaso
Director of Regulation