Circular Letter No. 3870 — Amends Circular Letter No. 3,853 of December 19, 2017, Detailing Accounting Items for the Simplified Risk-Weighted Assets (RWAS5) Credit Risk Calculation

The Head of the Prudential and Exchange Regulation Department (Dereg), using the powers conferred by Art. 23, item I, letter “a”; and Art. 118, item I, letter “a” of the Internal Regulations of the Central Bank of Brazil, annexed to Ordinance No. 95,818, of December 4, 2017, and considering the provisions of Art. 11, sole paragraph, of Resolution No. 4,606, of October 19, 2017,

R E S O L V E:

Art. 1° Art. 1 of Circular Letter No. 3,853, of December 19, 2017, shall be effective with the following wording:

“Art. 1º ...............................................................

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IX - ....................................................................

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ae) 1.2.1.20.70-3 - Union Liability Titles Abroad;

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XXII - operations for which there is no specific Risk Weighting Factor (RWF) established, which correspond:

a) to the sum of the values of the other Current Asset and Long-Term Receivable and Permanent Asset accounts listed in Cosif referring to operations consistent with the simplified risk profile requirements set forth in Arts. 4º and 5º of Resolution No. 4,606, of 2017, and not deducted from the Simplified Reference Equity (PRS5), mentioned in Circular Letter No. 3,850, of December 19, 2017;

b) to the values of account 3.0.1.00.00-4 - Co-obligations and Risks in Provided Guarantees.” (NR)

Art. 2º This Circular Letter enters into force on the date of its publication.

Rodrigo Lara Pinto Coelho