BCB Resolution No. 239 — Amends Circular No. 3,809 of August 25, 2016 Regarding Procedures for Recognizing Mitigating Instruments in the Calculation of Risk-Weighted Assets for Credit Risk Exposures Under the Standardized Approach

This resolution amends Circular No. 3,809 to update procedures for recognizing mitigating instruments in the calculation of risk-weighted assets (RWA) for credit risk exposures under the standardized approach. It introduces definitions for non-compliant assets, allows financial collateral from clients provided to clearinghouses or settlement service providers to mitigate specific exposures, and permits the concurrent use of the SA-CCR approach with other methods. The amendments also revise eligible collateral criteria, including senior securitization tranches and debt securities issued by institutions classified in risk category A, while establishing specific risk weight factors for covered and uncovered exposure portions. The resolution revokes Article 29 of the original circular and sets its effective date as July 1, 2023.

BCB published 15 documents in the last 30 days — get each new one by email the day it lands.

BCB RESOLUTION NO. 239, OF SEPTEMBER 1, 2022

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

The Collegiate Board of the Central Bank of Brazil, in a session held on August 31, 2022, based on the provisions of Articles 9, 10, item IX, and 11, item VII, of Law No. 4,595, of December 31, 1964, and taking into account the provisions of Article 3, paragraph 2, of CMN Resolution No. 4,958, of October 21, 2021,

Read the rest free, and get an email when BCB publishes again

Email me when BCB publishes something newOne email per publication, same day. Sign in below to keep reading.

Lineage: Amended

amendssupersedesissued underrefers toproposed or not in RegAlertarrows run from the older text to the one that changes it

Timeline

Amended 2 times · last 2023-06-14

Source: Banco Central do Brasil — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works