Central Bank Resolution No. 173: Publishes New Regulation of the Financial Stability Committee (Comef)

Resolution No. 173

BCB RESOLUTION
NO. 173, OF DECEMBER 9, 2021

Publishes the new Regulation of the Financial Stability Committee (Comef).

The Collegiate Board of Directors of the Central Bank of Brazil, in a session held on December 9, 2021, based on the provisions of Articles 9, 10, item VI, and 11, item VII, of Law No. 4,595, of December 31, 1964,

R E S O L V E S:

Art. 1º The Regulation of the Financial Stability Committee (Comef) is published, as set forth in the Annex to this Resolution.

Art. 2º The following are revoked:

I - Circular No. 3,927, of February 11, 2019; and

II - BCB Resolution No. 68, of February 3, 2021.

Art. 3º This Resolution enters into force on January 3, 2022.

Paulo Sérgio Neves de Souza Otávio Ribeiro Damaso

Director of Supervision Director of Regulation

REGULATION
ANNEXED TO BCB RESOLUTION NO. 173, OF DECEMBER 9, 2021

Regulates the functioning of the Financial Stability Committee (Comef).

CHAPTER I

ON THE OBJECTIVE

Art. 1º The Financial Stability Committee (Comef), constituted within the scope of the Central Bank of Brazil, aims to evaluate financial stability and define the guidelines and strategies of this Autarchy for mitigating systemic risk in the National Financial System (SFN), including that resulting from its interaction with the financial systems of other jurisdictions.

Art. 2º For the purposes of this Resolution, it is considered:

I - financial stability: maintenance, over time and in any economic scenario, of the regular functioning of the financial intermediation system between families, companies, and government; and

II - systemic risk: risk to the maintenance of financial stability.

CHAPTER II

ON THE STRUCTURE
AND FUNCTIONING OF COMEF

Art. 3º The members of Comef are the President and the Directors of the Central Bank of Brazil.

Art. 4º Comef will hold quarterly ordinary meetings and, by decision of the President, extraordinary meetings, with at least the President, or his substitute, and half the number of Directors present in both cases.

§ 1º Ordinary meetings will be held in two sessions:

I - the first session is dedicated to the presentation and discussion of topics and analyses selected according to items III and VII of Art. 5º; and

II - the second session is dedicated to defining strategies and guidelines to preserve financial stability and mitigate systemic risk, and to setting the value of the Counter-Cyclical Capital Buffer for Brazil (ACCPBrasil).

§ 2º In addition to the members of Comef, the heads of the following Units participate in the first session:

I - International Affairs Department (Derin);

II - Strategic Management and Specialized Supervision Department (Degef);

III - Financial System Monitoring Department (Desig);

IV - Supervision of Cooperatives and Non-Banking Institutions Department (Desuc);

V - Banking Supervision Department (Desup);

VI - Financial System Organization Department (Deorf);

VII - Resolution and Sanctioning Action Department (Derad);

VIII - Economic Department (Depec);

IX - Studies and Research Department (Depep);

X - Banking Operations and Payment Systems Department (Deban);

XI - Open Market Operations Department (Demab);

XII - International Reserves Department (Depin);

XIII - Financial System Regulation Department (Denor);

XIV - Prudential and Exchange Rate Regulation Department (Dereg);

XV - Competition and Financial Market Structure Department (Decem);

XVI - Conduct Supervision Department (Decon); and

XVII - Secretariat of Governance, Articulation, and Strategic Monitoring (Segov).

§ 3º The first session of ordinary meetings also includes the presence of the President's Chief of Staff, the Executive Secretary, the Attorney General, the Director of Supervision's Chief of Staff, and the Press Advisor, as well as other Central Bank of Brazil servers when authorized by the President.

§ 4º In the second session, in addition to the members of Comef, the President's Chief of Staff, the Executive Secretary, the Director of Supervision's Chief of Staff, and the Attorney General participate, without voting rights.

§ 5º Other servers may participate in the second session of ordinary meetings when summoned by the President.

§ 6º Participation in extraordinary meetings is restricted to the members of Comef, although other Central Bank of Brazil servers may participate when authorized by the President.

CHAPTER III

ON THE ATTRIBUTES AND COMPETENCIES OF COMEF

Art. 5º It is the responsibility of Comef to:

I - define the strategies and guidelines of the Central Bank of Brazil for conducting processes related to financial stability;

II - issue recommendations for conducting processes related to financial stability, including prevention mechanisms and contingency plans for risk situations, for resolving financial crises, and for taking measures by the Collegiate Board of Directors of the Central Bank of Brazil;

III - determine the performance of studies, research, and work related to financial stability and the prevention of systemic risk;

IV - allocate responsibilities to the Units involved with a view to integrated and coordinated action, according to the respective attributes defined in the Internal Regulations of the Central Bank of Brazil;

V - guide the action of the Central Bank of Brazil in the Committee for Regulation and Supervision of Financial, Capital, Insurance, Pension, and Capitalization Markets (Coremec) and in similar forums, as well as in relations with other entities holding information useful for maintaining financial stability;

VI - define the value of ACCPBrasil at each ordinary meeting of Comef;

VII - approve the topics selected in accordance with item I of § 1º of Art. 6º, to be discussed in its meetings and to compose the Financial Stability Report (REF);

VIII - approve the text of the REF for publication;

IX - approve changes to the structure of the REF; and

X - evaluate the efficiency of the SFN.

§ 1º The decision-making process for the purposes of item VI of the caput will take into account aspects associated with credit growth and asset prices, as well as the use, cumulatively or alternatively, of other instruments aimed at maintaining financial stability.

§ 2º Comef will deliberate by a majority of its members, with the President having a casting vote.

§ 3º Exceptionally, with justification, the reduction of ACCPBrasil may be defined in an extraordinary meeting of Comef.

§ 4º Exceptionally, with justification, a member of Comef may request the committee to withdraw an approved topic in accordance with item VII of the caput or to include a topic not previously selected.

§ 5º The members of Comef may decide non-presentially regarding items VII to IX of the caput and regarding the request referred to in § 4º.

Art. 6º Specific members of Comef are responsible for exercising the following attributes:

I - President:

a) preside over meetings and direct the voting;

b) approve the meeting agendas;

c) regulate, with the consent of Comef, the deliberative process and the recommendations of Comef, as well as the process of preparing the REF; and

d) authorize the participation of other Central Bank of Brazil servers in the meetings;

II - Director of Regulation: coordinate the preparation of the Communication that publishes the value of ACCPBrasil; and

III - Director of Supervision:

a) coordinate the organization of Comef meetings;

b) coordinate the preparation of the REF.

§ 1º The attributes of the Director of Supervision's Chief of Staff are:

I - coordinate meetings with representatives of the Units indicated in § 2º of Art. 4º, with a view to evaluating and recommending the topics to be presented in Comef meetings and those considered relevant to compose the REF;

II - organize the meeting agenda, in accordance with the President's guidance, taking into account previously approved topics;

III - consolidate the documents and presentations to be discussed in Comef meetings and make the relevant records;

IV - coordinate the preparation of the draft minutes of the Comef meeting, to be approved by its members, and make the relevant records;

V - monitor the measures related to the deliberations and recommendations of Comef and make the relevant records;

VI - communicate the deliberations of Comef to the heads of the Units referred to in § 2º of Art. 4º;

VII - coordinate the periodic evaluation of the effectiveness of Comef.

§ 2º In exercising its attributes, the Director of Supervision's Chief of Staff will be administratively assisted by the Secretariat of the Board of Directors and of the National Monetary Council (Sucon).

§ 3º Without prejudice to the participation of the other Unit heads mentioned in § 2º of Art. 4º, the following Unit heads must bring to the attention of Comef facts, when relevant, related to the diagnosis and prognosis of, at minimum:

I - Head of Desig: panorama of the SFN, assessment of risks to financial stability, and prospective assessment of credit;

II - Head of Derin: identification and assessment of risks of external origin;

III - Head of Deban: panorama of systemically important financial market infrastructures;

IV - Head of Depep: perception of regulated entities regarding risks to financial stability and long-term prospective assessment of credit;

V - Head of Depec: short-term prospective assessment of credit;

VI - Head of Dereg: assessment of regulatory policy and communication strategies aimed at maintaining financial stability; and

VII - Head of Derad: assessment of the resolvability risks of systemically important financial institutions.

CHAPTER IV

ON EXTERNAL COMMUNICATION

Art. 7º The instruments of external communication of Comef are the REF, the Minutes, and the Communication, without prejudice to the use of other instruments, when necessary.

Art. 8º The REF aims to present the panorama of recent evolution and perspectives for financial stability in Brazil, focusing on the main risks and the resilience of the SFN, as well as to communicate Comef's view on the policy and measures for preserving financial stability.

Art. 9º The Minutes aim to communicate Comef's assessment of financial stability, including aspects related to the determination of ACCPBrasil, the solidity, and the efficiency of the SFN.

Sole paragraph. The Minutes referred to in the caput will be published within a period of up to five business days after the date of the respective meeting.

Art. 10. The Communication aims to publish the value of ACCPBrasil and to inform, when deemed necessary, decisions of the policy aimed at maintaining financial stability.

Sole paragraph. The Communication referred to in the caput must be published on the date of the respective meeting, after its conclusion, and will be signed by the Directors of Regulation and Supervision.

CHAPTER V

GENERAL PROVISIONS

Art. 11. The annual calendar of ordinary meetings must be published by the end of September of the previous year.

Art. 12. The Collegiate Board of Directors of the Central Bank of Brazil will decide on omitted cases and amendments to this Regulation.