Circular No. 3429 — Establishes procedures for submitting information on market risk exposures and calculating respective Required Reference Equity (PRE) components

CIRCULAR NO. 003429

Establishes procedures for the submission of information regarding market risk exposures and the calculation of the respective components of the Required Reference Equity (PRE), as addressed in Resolutions No. 3,464 and 3,490, both from 2007.

The Collegiate Board of the Central Bank of Brazil, in a session held on January 14, 2009, based on the provisions of Articles 10, item IX, with the renumbering given by Law No. 7,730, of January 31, 1989, 11, item VII, and 37 of Law No. 4,595, of December 31, 1964, and taking into account the provisions of Resolutions No. 3,464, of June 26, 2007, and No. 3,490, of August 29, 2007,

D E C I D E D:

Article 1 Financial institutions and other institutions authorized to operate by the Central Bank of Brazil must prepare and submit information regarding market risk exposures and the calculation of the respective components of Required Reference Equity (PRE), as addressed in Resolutions No. 3,464, of June 26, 2007, and No. 3,490, of August 29, 2007.

§ 1 The following are exempt from submitting the information:

I - microentrepreneur and small business credit societies;

II - institutions mentioned in Article 1 of Resolution No. 2,772, of August 30, 2000;

III - single credit cooperatives that adopt the option provided for in Article 2, § 4, of Resolution No. 3,490, of 2007;

IV - single credit cooperatives affiliated with central credit cooperatives;

V - financial institutions whose sum of the PCAM, PJUR, PCOM, and PACS components of the PRE, in the thirty business days immediately preceding the respective base date, is less than R$3,000,000.00 (three million reais) and 0.05 (five hundredths) of the Reference Equity (RE) defined in terms of Resolution No. 3,444, of February 28, 2007.

§ 2 The exemption referred to in § 1, item V:

I - does not apply to multiple banks, commercial banks, investment banks, development banks, foreign exchange banks, savings banks, and institutions responsible for financial conglomerates that contain at least one institution constituted in the form of a multiple bank, commercial bank, foreign exchange bank, or investment bank;

II - depends on prior communication to the Department of Financial System Monitoring and Information Management (Desig), in the manner established by it.

§ 3 The submission of the information referred to in this circular must be resumed when the exemption condition mentioned in § 1, item V, ceases to be observed.

Article 2 The information referred to in Article 1 must be submitted to Desig, in the manner to be established by it, with the base date being the last business day of each month, observing the following deadlines:

I - for financial conglomerates and for financial institutions not belonging to financial conglomerates, until the fifth business day of the month following the month of the corresponding base date; and

II - for economic-financial consolidations, as addressed in Resolution No. 2,723, of May 31, 2000, with the wording given by Resolution No. 2,743, of June 28, 2000, until the tenth business day of the month following the month of the corresponding base date.

§ 1 The information referred to in Article 1, for a base date different from that established in this article, must be submitted to Desig whenever requested.

§ 2 For base dates between July 2008 and January 2009, the submission of the information referred to in this circular must be carried out until the last business day of February 2009.

Article 3 The institutions referred to in Article 1 must keep available to the Central Bank of Brazil the data and methodology used to prepare the submitted information, for a minimum period of five years.

Article 4 The procedures regarding the preparation and timely submission of the information referred to in this circular are the responsibility of the director indicated in terms of Article 10 of Resolution No. 3,464, of 2007.

Article 5 This circular enters into force on the date of its publication.

Article 6 Circular No. 3,381, of April 24, 2008, is hereby revoked.

Brasília, January 14, 2009.

Alvir Alberto Hoffmann Antonio Gustavo Matos do Vale Director Director