Circular No. 3998 Amending Circular No. 3,644 of March 4, 2013 Regarding Risk-Weighted Asset Calculations for Credit Risk Exposures Under the Standardized Approach

The Collegiate Board of the Central Bank of Brazil, in a session held on April 8, 2020, based on the provisions of Articles 9, 10, item IX, and 11, item VII, of Law No. 4,595, of December 31, 1964, and Articles 3, paragraph 2, and 15 of Resolution No. 4,193, of March 1, 2013,

R E S O L V E S:

Article 1. Circular No. 3,644, of March 4, 2013, shall enter into force with the following amendments:

“Article 24-C. A Factor of Risk (FPR) of 85% (eighty-five percent) must be applied to the credit operation that, cumulatively:

I - does not fall under Article 24;

II - has as counterparty a non-financial private legal entity not covered by item II of Article 24-A; and

III – is contracted or restructured, in accordance with Resolution No. 4,557, of 2017, in the period from March 16, 2020, to December 31, 2020.

Sole paragraph. The provisions of the main text do not apply to exposures for which there is a specific FPR lower than 85% (eighty-five percent).” (NR)

Article 2. This Circular enters into force on the date of its publication.

Otávio Ribeiro Damaso
Regulation Director