RegAlert2020-06-23 | Circular 4030Added · Updated
Circular No. 4030 — Amends Circular No. 3,809 of August 25, 2016, Establishing Procedures for Recognizing Mitigating Instruments in RWA Calculations for Credit Risk Exposures
The Board of Directors of the Central Bank of Brazil issued Circular No. 4030 to amend Circular No. 3,809 by introducing Article 29-A. This amendment mandates a 35% Risk Weighting Factor (FPR) for exposures to Time Deposits with Special Guarantee (DPGE) held by FGC member financial institutions. The regulation applies this factor to the total credit value of the holder against the same institution, subject to a maximum limit of R$400,000,000.00. The circular entered into force on the date of its publication.
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The Board of Directors of the Central Bank of Brazil, in a session held on June 10, 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:
Art. 1º Circular No. 3,809 of August 25, 2016, shall be amended as follows:
“Art. 29-A. A Risk Weighting Factor (FPR) of 35% (thirty-five percent) must be applied to the exposure to Time Deposit with Special Guarantee (DPGE) of the Credit Guarantee Fund (FGC) when the holder of the deposit is a financial institution authorized to operate by the Central Bank of Brazil and associated with the FGC.
Sole paragraph. The FPR referred to in the main text must be applied to the total value of the holder's credits against the same institution, respecting the maximum limit of R$400,000,000.00 (four hundred million reais) for the total of the credits.” (New)
Art. 2º This Circular enters into force on the date of its publication.
Otávio Ribeiro Damaso
Director of Regulation
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Lineage: In force
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