BCB Resolution No. 201 — Simplified Optional Methodology for Minimum Simplified Reference Equity (PRS5) Requirements for Type 3 Institutions

BCB RESOLUTION NO. 201, OF MARCH 11, 2022

Dispenses

on the simplified optional methodology for calculating the minimum requirement for Simplified Reference Equity (PRS5) for prudential conglomerates classified as Type 3, on the requirements for opting for this methodology, and on the simplified structure for continuous risk management.~~

Dispenses on the simplified optional methodology for calculating the minimum requirement for Simplified Reference Equity – PRS5 for institutions classified as Type 3, on the requirements for opting for this methodology, and on the simplified structure for continuous risk management. (Revised, effective from 1/1/2025, by BCB Resolution No. 447, of 12/19/2024.)

The Collegiate Board of the Central Bank of Brazil, in a session held on March 9, 2022, based on arts. 9, item II, 14, and 15 of Law No. 12,865, of October 9, 2013, and taking into account the provisions of arts. 10 and 14 of Resolution No. 4,282, of November 4, 2013,

R E S O L V E S:

CHAPTER I
ON THE OBJECT AND SCOPE OF APPLICATION

Art. 1. This Resolution provides, for the prudential conglomerate classified as Type 3 as established in BCB Resolution No. 197, of March 11, 2022, on:

Art. 1. This Resolution provides, for the Type 3 institution, on: (Revised, effective from 1/1/2025, by BCB Resolution No. 447, of 12/19/2024.)

I - the simplified optional methodology for calculating Simplified Reference Equity (PRS5) and its minimum requirement;

II - the requirements for opting for this methodology; and

III - the simplified structure for continuous risk management.

§ 1. It is the responsibility of the lead institution to comply with the obligations assigned to the respective conglomerate provided for in this Resolution.

§ 1. For a prudential conglomerate, it is the responsibility of the lead institution to comply with the obligations provided for in this Resolution. (Revised, effective from 1/1/2025, by BCB Resolution No. 447, of 12/19/2024.)

§ 2. For the purposes of this Resolution, the lead institution of a prudential conglomerate is defined in terms of the regulation dealing with the accounting criteria for preparing the consolidated accounting documents of the prudential conglomerate.

§ 2. The provisions in the caput apply on a consolidated basis for institutions that are part of a prudential conglomerate, in accordance with the Accounting Standard for Institutions Regulated by the Central Bank of Brazil – Cosif. (Revised, effective from 1/1/2025, by BCB Resolution No. 447, of 12/19/2024.)

§ 3. The classification by type for the purposes of applying the norms within the competence of the Central Bank of Brazil is defined in BCB Resolution No. 436, of November 28, 2024. (Added, effective from 1/1/2025, by BCB Resolution No. 447, of 12/19/2024.)

Art. 2. The option to use the simplified methodology for calculating the minimum PRS5 requirement is granted to Type 3 prudential conglomerates integrated by financial institutions or other institutions authorized to operate by the Central Bank of Brazil that belong to the following groups:

Art. 2. The option to use the simplified methodology for calculating the minimum PRS5 requirement is granted to the Type 3 institution that belongs to the following groups: (Revised, effective from 1/1/2025, by BCB Resolution No. 447, of 12/19/2024.)

I - Group II: non-banking institutions operating in credit granting; and

II - Group III: non-banking institutions operating in the gold, foreign currency markets, or as fiduciary agents.

§ 1. For the purposes of this Resolution, non-banking institutions are considered those that are not authorized to capture sight deposits and do not use the word “bank” in their name.

§ 2. The option for the simplified methodology is only applicable to a Type 3 prudential conglomerate if all institutions that integrate it belong to the same group among the groups referred to in items I and II of the caput, except for the presence of the lead payment institution and other payment institutions.

§ 3. For conglomerates integrated by institutions of Group II, the presence of investment funds in credit rights (FIDC) that meet the requirements to be considered as lower-risk securitization under art. 4, § 1, is admitted.

CHAPTER II
ON THE REQUIREMENTS FOR OPTING FOR THE USE OF THE SIMPLIFIED OPTIONAL METHODOLOGY

Art. 3. The option to use the simplified methodology for calculating the minimum PRS5 requirement is conditioned on meeting the following requirements:

I - size compatible with the classification in Segment 5 (S5), defined in art. 5 of BCB Resolution No. 197, of 2022; and

II - simplified risk profile.

§ 1. For a Type 3 prudential conglomerate constituted after the entry into force of this Resolution, the initial verification of compliance with the requirements referred to in the caput is based on: (Transformed into § 1, effective from 1/1/2025, by BCB Resolution No. 447, of 12/19/2024.)

I - the most recent available consolidated accounting information, in the case of institutions in operation; and

II - the information contained in the business plan submitted to the Central Bank of Brazil, in the case of an institution not yet authorized.

II - the information contained in the business plan or the respective executive summary submitted to the Central Bank of Brazil, in the case of an institution that requires prior authorization to operate. (Revised, effective from 1/1/2025, by BCB Resolution No. 447, of 12/19/2024.)

§ 2. For the institution authorized to operate by the Central Bank of Brazil after the entry into force of this Resolution, the initial verification of compliance with the requirements referred to in the caput is based on the information contained in the business plan or the respective executive summary submitted to the Central Bank of Brazil. (Added, effective from 1/1/2025, by BCB Resolution No. 447, of 12/19/2024.)

§ 3. The requirements referred to in the caput must be met on a consolidated basis for the institutions that are part of the prudential conglomerate. (Added, effective from 1/1/2025, by BCB Resolution No. 447, of 12/19/2024.)

Art. 4. A simplified risk profile is considered to be the compliance with the following requirements:

I - absence of operations:

a) subject to variation in stock prices, except for investment in stocks registered in permanent assets;

b) in a system maintained by a stock exchange;

c) with a financial derivative instrument; and

d) of asset lending;

II - absence of investment in credit securitization titles, except for lower-risk securitizations;

III - absence of committed operations, except:

a) sale operations with a commitment to repurchase with own assets; or

b) purchase operations with a commitment to resell with federal public titles fixed, indexed to an interest rate, or to a price index;

IV - except for investment in lower-risk securitization titles, exclusivity of investment in shares of investment funds that:

a) observe the restrictions established in items I to III of the caput;

b) do not maintain exposures arising from credit operations; and

c) are classified, in accordance with the regulations of the Securities and Exchange Commission (CVM), as Fixed Income Funds or Investment Fund in Shares of Investment Fund classified as Fixed Income Fund;

V - non-performance of activities of:

a) subscription of the issuance of securities and financial instruments (TVM) for resale;

b) intermediation of public offering and distribution of TVM in the market;

c) purchase and sale of TVM on behalf of third parties;

d) management of TVM portfolios;

e) custody of TVM;

f) subscription, transfer, and authentication of endorsements, splitting of cautionary notes, receipt and payment of redemptions, interest, and other proceeds of TVM;

g) establishment, organization, and management of funds and investment clubs;

h) issuance of deposit certificates for stocks;

i) bookkeeping services; and

j) margin account operations; and

j) margin account operations; (Revised by BCB Resolution No. 580, of 7/1/2026.)

VI - absence of instruments authorized by the Central Bank of Brazil to compose the Supplementary Capital or Level II of Reference Equity (PR), in accordance with art. 23 of BCB Resolution No. 199, of March 11, 2022.

VI - absence of instruments authorized by the Central Bank of Brazil to compose the Supplementary Capital or Level II of Reference Equity – PR, in accordance with art. 23 of BCB Resolution No. 199, of March 11, 2022; and (Revised by BCB Resolution No. 580, of 7/1/2026.)

VII - absence of provision of virtual asset services. (Added by BCB Resolution No. 580, of 7/1/2026.)

§ 1. For the purposes of this Resolution, lower-risk securitization is considered that which cumulatively meets the following criteria:

I - be structured as an FIDC with a maximum of two classes of payment prioritization;

II - have underlying assets:

a) referenced in national currency;

b) composed only of:

1. immediate liquidity resources; and

2. credit operations of the same modality, regarding loan, financing, or representative instrument lines, and originated only by an institution that is part of the prudential conglomerate, with resecuritization prohibited;

III - have underlying assets and subordinate shares:

a) adherent to the other criteria for identifying a simplified risk profile established in this article and in art. 5; and

b) not intended for:

1. resale;

2. obtaining benefit from price movements, actual or expected; or

3. realization of arbitrage.

§ 2. The activities referred to in item V of the caput do not include activities carried out with TVM representing a credit operation originated by an institution that is part of the prudential conglomerate.

Art. 5. For Type 3 prudential conglomerates belonging to Group II, a simplified risk profile is also considered to be the absence of:

I - sold or bought exposure in gold or foreign currency;

II - operations subject to:

a) exchange rate variation; or

b) variation in commodity prices (commodities).

CHAPTER III
ON THE CALCULATION OF THE PRS5 VALUE AND ITS MINIMUM REQUIREMENT

Section I
Definitions

Art. 6. For the purposes of calculating the PRS5 value, the following definitions apply:

I - subsidiary is the entity that is part of the conglomerate, except for the lead institution and consolidated investment fund; and

II - non-controlling interest is the portion of the subsidiary's capital not held, directly or indirectly, by the lead institution.

Section I-A
PRS5 of the Prudential Conglomerate

(Section I-A added, effective from 1/1/2025, by BCB Resolution No. 447, of 12/19/2024.)

Art. 6-A. The calculation of PRS5 must be performed on a consolidated basis for the institutions that are part of the same prudential conglomerate. (Added, effective from 1/1/2025, by BCB Resolution No. 447, of 12/19/2024.)

Section II
PRS5 Calculation Methodology

Art. 7. The PRS5 is calculated through:

I - the sum of the values corresponding to:

a) the social capital constituted by shares or quotas that are non-refundable and without dividend cumulativity mechanisms;

b) capital reserves, revaluation reserves, and profits;

c) unrealized gains resulting from asset valuation adjustments;

d) accumulated profits;

e) creditor result accounts; and

e) creditor result accounts; (Revised, effective from 1/1/2025, by BCB Resolution No. 448, of 12/23/2024.)

f) the deposit in a linked account admitted for the purpose of reclassifying the institution, in situations that constitute disqualification in minimum capital requirements, in accordance with specific regulation; and

g) the absolute value of the negative adjustment recorded in equity, resulting from the application, on January 1, 2025, of the criteria for establishing provisions for expected losses provided for in BCB Resolution No. 352, of November 23, 2023, including the floors established therein, observing the applicable percentages in the form of § 4; and (Added, effective from 1/1/2025, by BCB Resolution No. 448, of 12/23/2024.)

II - the deduction of the values corresponding to:

a) unrealized losses resulting from asset valuation adjustments;

b) shares, quotas, or any other instruments of own issuance authorized to compose the PRS5, acquired directly or indirectly by the issuing entity or by any entity of the prudential conglomerate;

c) accumulated losses;

d) debtor result accounts; and

e) prudential adjustments enumerated in art. 8, observing the provisions of art. 12.

§ 1. In the sum of the values referred to in item I of the caput, the capital increase in the authorization process should not be considered, except for the capital increase carried out through:

I - the incorporation of accumulated reserves or profits; and

II - the deposit in the linked account mentioned in item “f” of item I of the caput.

§ 2. The following should not be considered in the PRS5:

I - captured resources but not yet fully paid;

II - shares or quotas for which, upon issuance, there is an expectation of redemption, refund, amortization, repurchase, or cancellation; and

III - shares or quotas whose purchase was financed, directly or indirectly, by the issuing institution or by any entity of the conglomerate.

§ 3. The negative adjustment calculated on January 1, 2025, mentioned in item I, item “g”, of the caput must be net of fiscal effects and consider all financial instruments subject to the establishment of provisions for losses associated with credit risk, in accordance with BCB Resolution No. 352, of November 23, 2023. (Added, effective from 1/1/2025, by BCB Resolution No. 448, of 12/23/2024.)

§ 4. The value referred to in item I, item “g”, of the caput must be multiplied by: (Added, effective from 1/1/2025, by BCB Resolution No. 448, of 12/23/2024.)

I - 75% (seventy-five percent), until December 31, 2025; (Added, effective from 1/1/2025, by BCB Resolution No. 448, of 12/23/2024.)

II - 50% (fifty percent), from January 1, 2026, to December 31, 2026; (Added, effective from 1/1/2025, by BCB Resolution No. 448, of 12/23/2024.)

III - 25% (twenty-five percent), from January 1, 2027, to December 31, 2027; and (Added, effective from 1/1/2025, by BCB Resolution No. 448, of 12/23/2024.)

IV - 0% (zero percent), from January 1, 2028. (Added, effective from 1/1/2025, by BCB Resolution No. 448, of 12/23/2024.)

Art. 8. The prudential adjustments mentioned in art. 7, item II, item “e”, correspond to the following equity elements:

I - premiums paid on the acquisition of investments based on expected future profitability, net of deferred tax liabilities associated with them;

II - intangible assets;

III - actuarial assets related to defined benefit pension funds, net of deferred tax liabilities associated with them, to which the institutions that are part of the conglomerate do not have unrestricted access;

III - actuarial assets related to defined benefit pension funds, net of deferred tax liabilities associated with them, to which the institution does not have unrestricted access; (Revised, effective from 1/1/2025, by BCB Resolution No. 447, of 12/19/2024.)

IV - added value of direct or indirect investments:

a) in instruments eligible for the composition of Principal Capital, Supplementary Capital, and Level II, as defined in specific regulation, of an institution not part of the conglomerate;

b) in the social capital of entities not part of the conglomerate;

V - non-controlling interest in the capital of subsidiaries;

VI - tax credits resulting from temporary differences that depend on the generation of future taxable profits or revenues for their realization; and

VII - tax credits resulting from fiscal losses and from a negative base of Social Contribution on Net Profit and those originating from this contribution related to assessment periods closed until December 31, 1998, calculated in accordance with art. 8 of Provisional Measure No. 2,158-35, of August 24, 2001.

§ 1. The prudential adjustment referred to in item IV, item “b”, of the caput includes investments in any instrument convertible into equity participation in the invested entity or that can be unilaterally extinguished.

§ 2. The prudential adjustment provided for in item V of the caput does not apply to the portion of non-controlling interest held, directly or indirectly, by the controller of the lead institution.

Section III
Calculation of Risk-Weighted Assets on a Simplified Basis (RWAS5)

Art. 9. The prudential conglomerate opting for the simplified methodology provided for in this Resolution must calculate the amount of risk-weighted assets on a simplified basis (RWAS5), which corresponds to the sum of the following portions:

Art. 9. The institution opting for the simplified methodology provided for in this Resolution must calculate the amount of risk-weighted assets on a simplified basis – RWAS5, which corresponds to the sum of the following portions: (Revised, effective from 1/1/2025, by BCB Resolution No. 447, of 12/19/2024.)

I - RWAROSimp, relating to the calculation of the capital requirement to cover operational risk through the simplified standardized approach;

II - RWARCSimp, relating to exposures to credit risk subject to the calculation of the capital requirement through the simplified standardized approach;

III - RWACAMSimp, relating to exposure in gold, foreign currency, and assets subject to exchange rate variation through the simplified standardized approach;

IV - RWASP, relating to exposures associated with payment services.

§ 1. The payment services mentioned in item IV of the caput correspond to:

I - the issuance of electronic money, as provided for in art. 3, item I, of BCB Resolution No. 80, of March 25, 2021;

II - the accreditation of payment instruments, as provided for in art. 3, item III, of BCB Resolution No. 80, of 2021; and

III - the initiation of payment transactions, as provided for in art. 3, item IV, of BCB Resolution No. 80, of 2021.

§ 2. The sub-accreditation service, when carried out by an institution that is part of the conglomerate, is subject to the calculation of the RWASP portion, in the form of item II of § 1.

§ 2. The sub-accreditation service is subject to the calculation of the RWASP portion, in the form of item II of § 1. (Revised, effective from 1/1/2025, by BCB Resolution No. 447, of 12/19/2024.)

§ 3. Any other service, activity, or asset not mentioned in §§ 1 and 2 is subject to the calculation of the portions mentioned in items I to III of the caput, including those related to credit operations resulting from operations with post-paid payment instruments.

§ 4. The establishment of a portion related to the risks referred to in the caput does not constitute permission to carry out activities related to that portion, when prohibited by law, regulation, or administrative act, or dependent on prior authorization by the Central Bank of Brazil. (Added, effective from 1/1/2025, by BCB Resolution No. 447, of 12/19/2024.)

Section IV
Calculation of the Minimum PRS5 Requirement

Art. 10. The minimum PRS5 requirement for the prudential conglomerate that opts for the use of the simplified methodology corresponds to 17% (seventeen percent) of the RWAS5 amount, observing the transition rule provided for in art. 13.

Art. 10. The minimum PRS5 requirement corresponds to 17% (seventeen percent) of the RWAS5 amount. (Revised, effective from 1/1/2025, by BCB Resolution No. 447, of 12/19/2024.)

Art. 11. The conglomerate opting for the simplified methodology must permanently maintain a PRS5 amount higher than the minimum requirement established in this Resolution.

Art. 11. The institution opting for the simplified methodology must permanently maintain a PRS5 amount higher than the minimum requirement established in this Resolution. (Amended, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

Section V
Transition Rules for Calculating Minimum PRS5 Requirements

Art. 12. For a conglomerate classified as Type 3 on the date of publication of this Resolution, the deduction in PRS5 regarding the prudential adjustments established in Article 8 may be phased, applying the following percentages to the respective values:

I - 30% (thirty percent), effective January 1, 2023;

I - 30% (thirty percent), effective July 1, 2023; (Amended, effective 12/1/2022, by Central Bank Resolution No. 258, of 11/18/2022.)

II - 60% (sixty percent), effective January 1, 2024;

III - 100% (one hundred percent), effective January 1, 2025.

Art. 12. (Revoked, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

Art. 13. For a conglomerate classified as Type 3 on the date of publication of this Resolution, the minimum requirement mentioned in Article 10 is equal to:

I - 10% (ten percent), from January 1, 2023 to December 31, 2023;

I - 10% (ten percent), from July 1, 2023 to December 31, 2023; (Amended, effective 12/1/2022, by Central Bank Resolution No. 258, of 11/18/2022.)

II - 13% (thirteen percent), from January 1, 2024 to December 31, 2024; and

III - 17% (seventeen percent), effective January 1, 2025.

Art. 13. (Revoked, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

CHAPTER IV
DEDUCTION OF EXCESS FIXED ASSETS AND CAPITAL ALLOCATION

Art. 14. For the purpose of verifying compliance with the minimum requirement mentioned in Article 10, any excess of resources applied in Fixed Assets relative to the percentages established in specific regulation must be deducted from PRS5.

Art. 15. The prudential conglomerate that opts for the allocation of PRS5, in accordance with specific regulation, must deduct the allocated PRS5 value for the purpose of verifying compliance with the minimum requirement set forth in Article 10.

Art. 15. The institution that opts for the allocation of PRS5 for exclusive application in credit operations with government entities, in accordance with specific regulation, must deduct the allocated PRS5 value for the purpose of verifying compliance with the minimum requirement set forth in Article 10. (Amended, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

CHAPTER V
COMMUNICATION REGARDING THE SIMPLIFIED OPTIONAL METHODOLOGY

Art. 16. The choice or withdrawal of the use of the simplified methodology provided for in this Resolution must be:

I - approved by the board of directors; and

II - communicated to the Central Bank of Brazil.

§ 1st The confirmation of receipt of the communication by the Central Bank of Brazil conditions the start and end of the use of the methodology provided for in the main text.

§ 2nd The requirements and requests listed in this Resolution must be met:

I - prior to the communication of the choice mentioned in the main text; or

II - until the confirmation of receipt of the withdrawal communication by the Central Bank of Brazil.

Art. 17. The withdrawal of the use of the simplified methodology implies the prohibition of exercising a new choice of use for a period of 12 (twelve) months counted from the confirmation of receipt, by the Central Bank of Brazil, of the communication provided for in Article 16.

Art. 18. Non-compliance with at least one of the requirements established in Article 4 and, when applicable, also in Article 5, implies the immediate prohibition of using the methodology provided for in this Resolution.

Sole paragraph. The prohibition provided for in the main text remains for a period of 36 (thirty-six) months.

CHAPTER VI
SIMPLIFIED STRUCTURE FOR CONTINUOUS RISK MANAGEMENT

Section I
Risk Management Structure Requirements

Art. 19. The Type 3 prudential conglomerate opting for the simplified methodology provided for in this Resolution must implement a simplified continuous risk management structure that is:

Art. 19. The institution opting for the simplified methodology provided for in this Resolution must implement a simplified continuous risk management structure that is: (Amended, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

I - compatible with the business model, the nature of operations, and the complexity of products, services, activities, and processes of the conglomerate;

I - compatible with its business model, the nature of its operations, and the complexity of its products, services, activities, and processes; (Amended, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

II - proportional to the size and relevance of exposure to risks, according to criteria defined by the lead institution; and

II - proportional to the size and relevance of exposure to risks, according to criteria defined by the institution itself; and (Amended, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

III - adequate to the risk profile of the institutions that make up the conglomerate.

III - adequate to its risk profile. (Amended, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

§ 1st The structure must consider the risks associated with the conglomerate and each institution individually, as well as identify and monitor risks associated with other entities controlled by its members or in which they participate. (Transformed into § 1st, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

§ 2nd The risk management structure must be unified for the institutions that are part of the same prudential conglomerate. (Included, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

Art. 20. The simplified continuous risk management structure must identify, measure, assess, monitor, report, control, and mitigate:

I - operational risk, as defined in Article 22;

II - liquidity risk, as defined in Article 25;

III - credit risk, as defined in Article 28;

IV - social risk, as defined in Article 31;

V - environmental risk, as defined in Article 32;

VI - climate risk, as defined in Article 33; and

VII - other risks to which the prudential conglomerate is exposed in a relevant manner.

VII - other risks to which the institution is exposed in a relevant manner. (Amended, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

Art. 21. The simplified continuous risk management structure must provide for:

I - risk management policies, strategies, routines, and procedures, clearly documented;

II - reporting to the board of directors of exceptions to the policies mentioned in item I of the main text;

III - monitoring of capital levels;

IV - prior identification of risks inherent to relevant modifications in existing products and services, as well as to new products and services;

V - documentation of the responsibilities of the personnel responsible for risk management of the conglomerate; and

VI - preparation of periodic managerial reports regarding the performance of the simplified risk management structure.

Sole paragraph. The processes related to risk management must be periodically evaluated by the internal audit of the lead institution.

Sole paragraph. The processes related to risk management must be periodically evaluated by the internal audit of the institution. (Amended, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

Section II
Operational Risk Management

Art. 22. For the purposes of this Resolution, operational risk is defined as the possibility of occurrence of losses resulting from external events or failure, deficiency, or inadequacy of internal processes, people, or systems.

§ 1st The definition provided for in the main text includes legal risk associated with the inadequacy or deficiency in contracts entered into by the institutions, sanctions due to non-compliance with legal provisions, and compensation for damages to third parties resulting from the activities developed by the prudential conglomerate.

§ 1st The definition provided for in the main text includes legal risk associated with the inadequacy or deficiency in contracts entered into by the institution, sanctions due to non-compliance with legal provisions, and compensation for damages to third parties resulting from the activities developed by the institution. (Amended, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

§ 2nd Among operational risk events, the following are included:

I - internal fraud;

II - external fraud;

III - labor lawsuits and deficient workplace safety;

IV - inappropriate practices regarding end users, clients, products, and services;

V - damage to physical assets owned or used by the institution;

VI - situations that cause the interruption of institution activities or the discontinuity of services provided, including payment services;

VII - failures in systems, processes, or information technology (IT) infrastructure;

VIII - failures in execution, deadline compliance, or management of institution activities, including those related to payment arrangements;

IX - failures in the protection and security of sensitive data related to both end-user credentials and other information exchanged to effect payment transactions;

X - failures in the identification and authentication of the end user in a payment transaction;

XI - failures in the authorization of payment transactions; and

XII - failures in the initiation of payment transactions.

Art. 23. The simplified continuous risk management structure, provided for in Article 21, must additionally provide, for operational risk:

I - decision criteria regarding the outsourcing of services and selection of providers, including the minimum contractual conditions necessary for mitigating operational risk;

II - assessment, management, and monitoring of operational risk arising from outsourced services relevant to the regular functioning of the institutions;

III - IT infrastructure that ensures the integrity, security, and availability of data and information systems used;

III - IT infrastructure that ensures the integrity, security, and availability of data and information systems used; and (Amended, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

IV - business continuity policy;

IV - business continuity policy. (Amended, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

V - mechanisms for the protection and security of stored, processed, or transmitted data;

V - (Revoked, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

VI - mechanisms for the protection and security of networks, websites, servers, and communication channels with the aim of reducing vulnerability to attacks;

VI - (Revoked, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

VII - procedures to monitor, track, and restrict access to sensitive data, networks, systems, databases, and security modules;

VII - (Revoked, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

VIII - monitoring of data security failures and end-user complaints regarding this matter;

VIII - (Revoked, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

IX - review of security and data confidentiality measures, especially after the occurrence of failures and prior to changes in infrastructure or procedures;

IX - (Revoked, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

X - preparation of reports indicating procedures for correcting identified failures;

X - (Revoked, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

XI - performance of tests that ensure the robustness and effectiveness of adopted data security measures;

XI - (Revoked, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

XII - segregation of functions in information technology environments intended for development, testing, and production;

XII - (Revoked, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

XIII - adequate identification of the end user;

XIII - (Revoked, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

XIV - mechanisms for end-user authentication and transaction authorization;

XIV - (Revoked, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

XV - processes to ensure that all payment transactions can be adequately tracked;

XV - (Revoked, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

XVI - monitoring and authorization mechanisms for payment transactions, with the aim of preventing fraud, detecting, and blocking suspicious transactions in a timely manner;

XVI - (Revoked, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

XVII - specific evaluations and filters to identify transactions considered high risk;

XVII - (Revoked, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

XVIII - notification to the end user regarding any non-execution of a transaction;

XVIII - (Revoked, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

XIX - mechanisms that allow the end user to verify if the transaction was executed correctly;

XIX - (Revoked, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

XX - identification, assessment, management, monitoring, and mitigation of the risk arising from the participation of sub-acquirers in the payment transaction settlement process, in the case of an acquiring institution; and

XX - (Revoked, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

XXI - monitoring and control mechanisms for failures in the initiation of payment transactions, segregating, at a minimum, the following events:

a) unauthorized initiation of payment transaction;

b) non-execution of payment transaction initiation;

c) incorrect execution of payment transaction initiation; and

d) delay in the initiation of payment transaction.

XXI - (Revoked, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

§ 1st In the case of outsourcing of IT services, including those related to the security of payment services offered, the respective service provision contract must stipulate that:

§ 1st In the case of outsourcing of IT services, the respective service provision contract must stipulate that: (Amended, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

I - the contractor must comply with the provisions of items IV to XXI of the main text;

I - the contractor must have a business continuity policy, as provided for in item IV of the main text; (Amended, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

II - the contracting party will have access to the data and information regarding the services provided;

III - the Central Bank of Brazil will have access to:

a) terms signed;

b) documentation and information regarding the services provided; and

c) contractor premises.

c) contractor premises; and (Amended, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

IV - in the case of outsourcing of IT services related to payment services, the contractor must also comply with the provisions of item IV of the main text and items I to XVII of § 3rd. (Included, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

§ 2nd The business continuity policy provided for in the main text, item IV, must provide for:

I - identification and documentation of critical business processes;

II - strategies to ensure the continuity of activities of the institutions that are part of the conglomerate and limit losses resulting from the interruption of critical business processes;

II - strategies to ensure the continuity of the institution's activities and limit losses resulting from the interruption of critical business processes; and (Amended, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

III - a business continuity plan that establishes procedures for restarting and recovering activities in the event of interruption of critical business processes.

§ 3rd For institutions opting for the simplified methodology provided for in this Resolution that carry out payment activities, the structure provided for in the main text must additionally provide for payment activities: (Included, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

I - mechanisms for the protection and security of stored, processed, or transmitted data; (Included, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

II - mechanisms for the protection and security of networks, websites, servers, and communication channels with the aim of reducing vulnerability to attacks; (Included, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

III - procedures to monitor, track, and restrict access to sensitive data, networks, systems, databases, and security modules; (Included, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

IV - monitoring of data security failures and end-user complaints regarding this matter; (Included, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

V - review of security and data confidentiality measures, especially after the occurrence of failures and prior to changes in infrastructure or procedures; (Included, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

VI - preparation of reports indicating procedures for correcting identified failures; (Included, effective 1/1/2025, by Central Bank Resolution No. 447, of 12/19/2024.)

VII

• implementation of tests that ensure the robustness and effectiveness of adopted data security measures; (Included, effective 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

VIII

• segregation of functions in information technology environments intended for development, testing, and production; (Included, effective 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

IX

• adequate identification of the end user; (Included, effective 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

X

• mechanisms for authenticating end users and authorizing payment transactions; (Included, effective 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

XI

• processes to ensure that all payment transactions can be adequately tracked; (Included, effective 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

XII

• monitoring and authorization mechanisms for payment transactions, with the objective of preventing fraud, detecting, and blocking suspicious transactions in a timely manner; (Included, effective 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

XIII

• specific assessments and filters to identify transactions considered high risk; (Included, effective 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

XIV

• notification to the end user regarding any non-execution of a transaction; (Included, effective 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

XV

• mechanisms that allow the end user to verify if the transaction was executed correctly; (Included, effective 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

XVI

• identification, assessment, management, monitoring, and mitigation of the risk arising from the participation of a sub-acquirer in the payment transaction settlement process, in the case of an acquiring institution; and (Included, effective 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

XVII

• monitoring and control mechanisms for failures in the initiation of payment transactions, segregating, at a minimum, the following events: (Included, effective 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

a) initiation of an unauthorized payment transaction; (Included, effective 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

b) non-execution of payment transaction initiation; (Included, effective 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

c) incorrect execution of payment transaction initiation; and (Included, effective 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

d) delay in the initiation of a payment transaction. (Included, effective 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

Art. 24. Institutions must ensure adequate operational risk training for all employees and relevant third-party service providers.

Section III
On Liquidity Risk Management

Art. 25. For the purposes of this Resolution, liquidity risk is defined as the possibility that the institution:

I - is unable to efficiently honor its expected and unexpected, current and future obligations without affecting its daily operations and without incurring significant losses; or

II - is unable to convert electronic money into physical or book money at the time of the user's request.

Art. 26. The simplified structure for continuous risk management, referred to in Art. 21, must additionally provide, for liquidity risk:

I - processes to identify, assess, monitor, and control exposure to liquidity risk across different time horizons, including intraday;

II - maintenance of a funding profile adequate to expected and unexpected, current and future liquidity needs, including those arising from exposures not recorded on the balance sheet;

III - maintenance of an adequate stock of liquid assets that can be readily converted into cash to honor obligations;

IV - a liquidity contingency plan that establishes:

a) responsibilities and procedures to address liquidity stress situations; and

b) strategies that ensure the maintenance of an adequate stock of liquid assets that can be readily converted into cash without significant loss of value.

Sole Paragraph. The monitoring of the liquidity level, referred to in item I of the caput, must consider all operations conducted in the financial and capital markets, as well as possible contingent or unexpected exposures, including those associated with settlement services, the provision of sureties and guarantees, and contracted and unused credit and liquidity lines.

Art. 27. The electronic money issuing institution must describe the main characteristics of its liquidity risk management structure in a publicly accessible report, with a minimum annual frequency.

Sole Paragraph. The institution must disclose, together with its published financial statements, the address of the institution's website where the report mentioned in the caput is located.

Section IV
On Credit Risk Management

Art. 28. For the purposes of this Resolution, credit risk is defined as the possibility of occurrence of losses associated:

I - with the counterparty's failure to fulfill its obligations as agreed;

II - with the devaluation or reduction of expected remuneration and gains in a financial instrument resulting from the deterioration of the credit quality of the instrument, the counterparty, or an intervenor;

III - with advantages granted in the restructuring of financial instruments, as defined in § 1º, item II;

IV - with recovery costs for exposures characterized as problematic assets, in accordance with Art. 30; or

V - with disbursements to honor financial guarantees provided under Resolution No. 4,512, of July 28, 2016.

§ 1º For the purposes of credit risk management, the following are considered:

I - counterparty:

a) the borrower;

b) the guarantor;

c) the issuer of a title or security acquired;

d) the end user vis-à-vis the issuer of a post-paid payment instrument;

e) the issuer vis-à-vis the acquirer of a payment instrument; and

f) the institution indebted to another institution resulting from an interoperability agreement between different payment arrangements; and

II - restructuring of financial instruments:
renegotiation that implies the granting of advantages to the counterparty due to the deterioration of its credit quality or the credit quality of the intervenor.

II - restructuring of financial instruments: renegotiation under Art. 2º, item XXI, of Resolution BCB No. 219, of March 30, 2022. (Redacted, effective 1/1/2025, by Resolution BCB No. 332, of June 29, 2023.)

§ 2º The advantages mentioned in item III of the caput include those added to the original financial instruments or formalized in new instruments used for settlement or refinancing of those.

§ 2º (Revoked, effective 1/1/2025, by Resolution BCB No. 332, of June 29, 2023.)

§ 3º The definition of credit risk includes concentration risk, understood as the possibility of losses associated with significant exposures:

I - to the same counterparty;

II - to counterparties between which a control relationship exists, when one of the counterparties holds, directly or indirectly, more than 50% (fifty percent) of the voting capital of the other counterparty;

III - to a counterparty operating in the same economic sector, geographic region, or segment of products or services;

IV - associated with the same type of financial product or service; and

V - whose risk is mitigated by the same type of instrument.

Art. 29. The simplified structure for continuous risk management, referred to in Art. 21, must additionally provide, for credit risk:

I - the management of exposures with similar characteristics, both at the individual and aggregate level, covering aspects such as significant sources of credit risk, identification of the counterparty or intervenor, and the method of aggregation of exposures;

II - the identification of significant risk factors for the purposes of managing concentration risk, according to criteria defined by the conglomerate itself;

II

• the identification of significant risk factors for the purposes of managing concentration risk, according to criteria defined by the institution itself; (Redacted, effective 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

III - management of the credit risk of exposures not recorded on the institutions' balance sheets;

IV - observed the current accounting regulation, mechanisms to ensure that provisioning levels are sufficient in light of the credit risk incurred by the institutions;

V - criteria and procedures, clearly defined and documented, accessible to those involved in the processes of granting and monitoring operations subject to credit risk, including:

a) prior analysis, execution, and renegotiation of operations subject to credit risk;

b) collection and documentation of information necessary for a complete understanding of the credit risk involved in the operations;

c) detection of signs and adoption of measures regarding the deterioration of the counterparty's credit quality;

d) collection and receipt of credits; and

e) recovery of exposures characterized as problematic assets, in accordance with Art. 30;

VI - criteria and procedures for the identification, monitoring, and control of exposure characterized as a problematic asset, in accordance with Art. 30; and

VII - documentation and storage of information regarding losses associated with credit risk, including those related to restructuring, under Art. 28, § 1º, item II, and to credit recovery.

Art. 30. For the purposes of credit risk management, an exposure must be characterized as a problematic asset when at least one of the following events is verified:

Art. 30. For the purposes of credit risk management, the characterization and de-characterization of an exposure as a problematic asset must occur in accordance with Art. 3º of Resolution BCB No. 219, of 2022. (Redacted, effective 1/1/2025, by Resolution BCB No. 332, of June 29, 2023.)

I - the respective obligation is overdue for more than 90 (ninety) days;

I - (Revoked, effective 1/1/2025, by Resolution BCB No. 332, of June 29, 2023.)

II - there are indications that the respective obligation will not be fully honored without recourse to guarantees or collateral.

II - (Revoked, effective 1/1/2025, by Resolution BCB No. 332, of June 29, 2023.)

§ 1º The indications that an obligation will not be fully honored include:

I - the institution considers that the counterparty no longer has the financial capacity to honor the obligation under the agreed conditions;

II - the institution, regardless of regulatory requirement, recognizes significant deterioration in the credit quality of the borrower or counterparty in its accounting;

III - the operation related to the exposure is restructured, under Art. 28, § 1º, item II;

IV - the institution files for bankruptcy or takes similar action against the counterparty; and

V - the counterparty requests or suffers any type of judicial measure that limits, delays, or prevents the fulfillment of its obligations under the agreed conditions.

§ 1º (Revoked, effective 1/1/2025, by Resolution BCB No. 332, of June 29, 2023.)

§ 2º Exposures characterized as problematic assets can only have this condition reversed in the face of evidence of the counterparty's resumption of the capacity to honor its obligations under the agreed conditions.

§ 2º (Revoked, effective 1/1/2025, by Resolution BCB No. 332, of June 29, 2023.)

§ 3º The criteria for the evidence referred to in § 2º must be previously established and clearly documented.

§ 3º (Revoked, effective 1/1/2025, by Resolution BCB No. 332, of June 29, 2023.)

Section
V
On Social Risk, Environmental Risk, and Climate Risk Management

Art. 31. For the purposes of this Resolution, social risk is defined as the possibility of occurrence of losses for the institution caused by events associated with the violation of fundamental rights and guarantees or acts harmful to common interest.

§ 1º For the purposes of this Resolution, common interest is that associated with a group of people linked legally or factually by the same cause or circumstance, when not related to the definition of environmental risk, transition climate risk, or physical climate risk.

§ 2º Examples of social risk events are the occurrence or, as the case may be, the indications of the occurrence of:

I - act of harassment, discrimination, or prejudice based on personal attributes, such as ethnicity, race, color, socioeconomic status, family situation, nationality, age, sex, sexual orientation, gender identity, religion, belief, disability, genetic or health condition, and ideological or political positioning;

II - practice related to work in conditions analogous to slavery;

III - irregular, illegal, or criminal exploitation of child labor;

IV - practice related to human trafficking, sexual exploitation, or criminal profit from prostitution;

V - non-compliance with social security or labor legislation, including legislation regarding health and workplace safety, without prejudice to the provisions of Art. 22;

VI - irregular, illegal, or criminal act that negatively impacts traditional peoples or communities, including indigenous and quilombola communities, including invasion or irregular, illegal, or criminal exploitation of their lands;

VII - act harmful to public heritage, historical heritage, cultural heritage, or urban order;

VIII - irregular, illegal, or criminal practice associated with food or products potentially harmful to society, subject to specific legislation or regulation, including pesticides, substances capable of causing dependence, nuclear or radioactive materials, firearms, and ammunition;

IX - irregular, illegal, or criminal exploitation of natural resources, in relation to the violation of a right or fundamental guarantee or to an act harmful to common interest, including water, forest, energy, and mineral resources, including, when applicable, the installation and dismantling of respective facilities;

X - irregular, illegal, or criminal treatment of personal data, without prejudice to the provisions of Art. 22;

XI - environmental disaster resulting from human intervention, in relation to the violation of a right or fundamental guarantee or to an act harmful to common interest, including dam rupture, nuclear accident, or spill of chemicals or waste into waters;

XII - change in legislation, regulation, or the action of government bodies, associated with a right or fundamental guarantee or common interest, that negatively impacts the institution; and

XIII - act or activity that, despite being regular, legal, and non-criminal, negatively impacts the reputation of the institution, as it is considered harmful to common interest.

Art. 32. For the purposes of this Resolution, environmental risk is defined as the possibility of occurrence of losses for the institution caused by events associated with environmental degradation, including the excessive use of natural resources.

Sole Paragraph. Examples of environmental risk events are the occurrence or, as the case may be, the indications of the occurrence of:

I - irregular, illegal, or criminal conduct or activity against fauna or flora, including deforestation, provocation of fire in woods or forests, degradation of biomes or biodiversity, and practice associated with trafficking, cruelty, abuse, or mistreatment of animals;

II - irregular, illegal, or criminal pollution of the air, waters, or soil;

III - irregular, illegal, or criminal exploitation of natural resources, in relation to environmental degradation, including water, forest, energy, and mineral resources, including, when applicable, the installation and dismantling of respective facilities;

IV - non-compliance with environmental licensing conditions;

V - environmental disaster resulting from human intervention, in relation to environmental degradation, including dam rupture, nuclear accident, or spill of chemicals or waste into soil or waters;

VI - change in legislation, regulation, or the action of government bodies, due to environmental degradation, that negatively impacts the institution; and

VII - act or activity that, despite being regular, legal, and non-criminal, negatively impacts the reputation of the institution, due to environmental degradation.

Art. 33. For the purposes of this Resolution, climate risk, in its transition risk and physical risk aspects, is defined as:

I - transition climate risk: possibility of occurrence of losses for the institution caused by events associated with the process of transition to a low-carbon economy, in which greenhouse gas emissions are reduced or compensated and natural mechanisms for capturing these gases are preserved; and

II - physical climate risk: possibility of occurrence of losses for the institution caused by events associated with frequent and severe weather events or long-term environmental changes, which may be related to changes in climate patterns.

Sole Paragraph. Examples of climate risk events are:

I - within the scope of transition climate risk:

a) change in legislation, regulation, or government action, associated with the transition to a low-carbon economy, that negatively impacts the institution;

b) technological innovation associated with the transition to a low-carbon economy that negatively impacts the institution;

c) change in the supply or demand for products and services, associated with the transition to a low-carbon economy, that negatively impacts the institution; and

d) unfavorable perception by customers, the financial market, or society in general that negatively impacts the institution's reputation regarding its degree of contribution to the transition to a low-carbon economy; and

II - within the scope of physical climate risk:

a) extreme weather conditions, including drought, flood, storm, cyclone, frost, and forest fire; and

b) permanent environmental change, including sea level rise, natural resource scarcity, desertification, and change in rainfall or temperature patterns.

Art. 34. The simplified structure for continuous risk management, referred to in Art. 21, must additionally provide, for social risk, environmental risk, and climate risk:

I - mechanisms for the identification and monitoring of social risk, environmental risk, and climate risk incurred by the institution due to its products, services, activities, or processes and the activities performed by:

a) the institution's counterparty, as defined in Art. 28, § 1º, item I;

b) entities controlled by the institution, under the criteria established in the sole paragraph; and

c) the institution's suppliers and third-party service providers, when relevant, based on criteria established by it;

II - identification, assessment, classification, and measurement of social risk, environmental risk, and climate risk based on consistent and verifiable criteria and information, including publicly accessible information;

III - procedures for adapting the management of social risk, environmental risk, and climate risk to political, legal, regulatory, technological, or market changes that may impact the institution in a relevant manner; and

IV - criteria, clearly documented and verifiable, for identifying social risk, environmental risk, and climate risk as significant sources of the risks mentioned in Art. 20.

Sole Paragraph. For the purposes of the provision in the caput, item I, letter "b", the institution's control relationship over an entity occurs when at least one of the following criteria is met:

I - the institution holds more than 50% (fifty percent) of the voting capital of the entity;

II - a voting agreement ensures the institution's predominance in the entity's social deliberations;

III - the institution holds the power to elect or remove the majority of the entity's administrators; or

IV - the institution holds predominance in the operational management decisions of the entity.

Section VI
On Governance

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Art. 35. The institution opting for the simplified methodology referred to in this Resolution must designate, before the Central Bank of Brazil, a director responsible for the simplified structure for continuous risk management. (Amended, effective as of 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

§ 1º The director referred to in the caput must:

I - supervise the development, implementation, and performance of the simplified risk management structure, and ensure its improvement;

II - support and participate in the process of making strategic decisions related to risk management, assisting the board of directors; (Amended, effective as of 7/1/2023, by Resolution BCB No. 319, of 5/18/2023.)

III - supervise the processes and controls related to the calculation of the RWAS5 amount and the minimum requirement for PRS5; and (Amended, effective as of 7/1/2023, by Resolution BCB No. 319, of 5/18/2023.)

IV - be responsible for compliance with the provisions of Resolution BCB No. 319, of May 18, 2023, which establishes maximum exposure limits per client and maximum limit for concentrated exposures. (Included, effective as of 7/1/2023, by Resolution BCB No. 319, of 5/18/2023.)

§ 2º Provided that the absence of conflicts of interest is ensured, including conflicts associated with activities carried out by business units, it is admitted that the director referred to in the caput performs other functions in the institution.

Art. 36. It is the responsibility of the board of directors, for risk management purposes:

I - approve and review, with a minimum frequency of two years, the risk management policies and strategies and ensure their observance;

II - ensure the timely correction of deficiencies in the simplified risk management structure;

III - authorize, when necessary, exceptions to the established policies and procedures;

IV - promote the dissemination of a risk management culture;

V - ensure the maintenance of adequate and sufficient levels of capital and liquidity;

VI - comprehensively understand the risks that may impact the capital and liquidity of the institution; and (Amended, effective as of 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

VII - approve and review, with a minimum annual periodicity, the policy for preserving the value and liquidity of electronic currencies, when issued.

Art. 37. In the absence of a board of directors, the competencies attributed to it by this Resolution apply to the management of the institution. (Amended, effective as of 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

CHAPTER VII
FINAL PROVISIONS

Art. 38. The Central Bank of Brazil may determine that the values related to the instruments authorized to compose the PRS5 be disregarded, if non-compliance with the requirements and conditions established in this Resolution is found.

Art. 39. If the Central Bank of Brazil identifies inadequacy or insufficiency in risk management, it may determine its improvement without prejudice to the determination of the adoption of preventive prudential measures provided for in current regulation.

Art. 40. The following must be kept available to the Central Bank of Brazil for 5 (five) years:

I - documentation related to the risk management structure;

II - the reports referred to in this Resolution.

Art. 41. This Resolution enters into force on July 1, 2023. (Amended, effective as of 12/1/2022, by Resolution BCB No. 258, of 11/18/2022.)

Otávio Ribeiro Damaso
Regulation Director