RESOLUTION CMN

NO. 4,955, OF OCTOBER 21, 2021

Establishes the methodology for calculating Reference Equity (PR).

The Central Bank of Brazil, in accordance with Article 9 of Law No. 4,595, of December 31, 1964, makes public that the National Monetary Council, in a session held on October 21, 2021, based on Articles 4, items VIII and XI, of said Law, Article 20, § 1º, of Law No. 4,864, of November 29, 1965, Law No. 6,099, of September 12, 1974, and Articles 1 and 12 of Complementary Law No. 130, of April 17, 2009,

RESOLVES:

TITLE I

PRELIMINARY PROVISIONS

CHAPTER I

OBJECT AND SCOPE OF APPLICATION

Art. 1. This Resolution establishes the calculation methodology for Reference Equity (PR) calculated by financial institutions and other institutions authorized to operate by the Central Bank of Brazil.

Sole Paragraph. The provisions of this Resolution do not apply:

I - to institutions opting for the simplified optional methodology for calculating the minimum requirement for Simplified Reference Equity (PRS5), in accordance with Resolution No. 4,606, of October 19, 2017; and

II - to consortium administrators and payment institutions, which must observe the specific regulation of the Central Bank of Brazil, in the exercise of their legal duties. [Struck through text: "II - to consortium administrators and payment institutions, which must observe the specific regulation of the Central Bank of Brazil, in the exercise of their legal duties."]

II - to consortium administrators, payment institutions, securities brokerage firms, securities distribution firms, and foreign exchange brokerage firms, which will follow the norms issued by the Central Bank of Brazil in the exercise of their legal duties. (Amended, effective January 1, 2025, by CMN Resolution No. 5,194, of December 19, 2024.)

CHAPTER II

DEFINITIONS

Art. 2. PR consists of the sum of Level I and Level II.

§ 1º. Level I consists of the sum of Principal Capital and Supplementary Capital.

§ 2º. For the purpose of calculating the value of PR, the following definitions apply:

I - subsidiary is an entity part of a conglomerate, except for the lead institution and consolidated investment fund; and

II - non-controlling interest is the portion of the subsidiary's capital not held, directly or indirectly, by the lead institution of the conglomerate.

TITLE II

CALCULATION OF REFERENCE EQUITY

CHAPTER I

CONSOLIDATED CONGLOMERATE REFERENCE EQUITY

Art. 3. The calculation of PR must be performed on a consolidated basis for institutions belonging to the same prudential conglomerate, in accordance with specific regulation.

Sole Paragraph. The calculation of PR for financial institutions and other institutions authorized by the Central Bank of Brazil belonging to a prudential conglomerate led by a payment institution must observe the regulation applicable to this type of conglomerate. (Added, effective July 1, 2023, by CMN Resolution No. 5,049, of November 25, 2022.)

CHAPTER II

CALCULATION OF LEVEL I

Section I

Calculation of Principal Capital

Art. 4. Principal Capital is calculated by:

I - the sum of the corresponding values:

a) to the social capital constituted by quotas, quota-shares, or by non-redeemable shares without mechanisms for cumulative dividends;

b) to capital reserves, revaluation reserves, and profit reserves;

c) to unrealized gains resulting from asset valuation adjustments, except those provided for in item “g”;

c) to unrealized gains resulting from asset valuation adjustments, except those provided for in items “g” and “h”; (Amended by CMN Resolution No. 5,214, of May 22, 2025.)

d) to accumulated surpluses or profits;

e) to credit result accounts, except for the adjustment provided for in item “h”;

e) to credit result accounts; (Amended, effective January 1, 2023, by CMN Resolution No. 5,049, of November 25, 2022.)

f) to the deposit in a linked account admitted for the purpose of reclassifying the institution, in situations that constitute disqualification in the minimum capital requirements, in accordance with Article 6 of Resolution No. 4,019, of September 29, 2011;

g) to the balance of the positive adjustment to the market value of derivative financial instruments used for cash flow hedging; and

g) to the balance of the positive adjustment to the market value of derivative financial instruments used for hedging of cash flow; (Amended, effective January 1, 2025, by CMN Resolution No. 5,199, of December 23, 2024.)

h) to the balance of the positive adjustment to the market value of derivative financial instruments recorded accounting-wise as liabilities due to changes in the institution's own credit risk, net of tax effects; and

i) to the absolute value of the negative adjustment registered in equity, resulting from the application, on January 1, 2025, of the criteria for establishing provisions for expected losses provided for in CMN Resolution No. 4,966, of November 25, 2021, and in accordance with the floors established by the Central Bank of Brazil, observing the applicable percentages in the form of § 9º; and (Added, effective January 1, 2025, by CMN Resolution No. 5,199, of December 23, 2024.)

II - the deduction of the corresponding values:

a) to unrealized losses resulting from asset valuation adjustments, except those provided for in item “e”;

a) to unrealized losses resulting from asset valuation adjustments, except those provided for in items “e” and “f”; (Amended by CMN Resolution No. 5,214, of May 22, 2025.)

b) to shares or any other issuance instruments authorized to compose Principal Capital, acquired directly, indirectly, or synthetically, including by means of:

1. quotas of investment funds, proportionally to the participation of these instruments in the fund's portfolio;

2. entities similar to a financial institution or non-financial entities, controlled; or

3. derivative operations, including index derivatives;

c) to accumulated losses or deficits;

d) to debit result accounts, except for the adjustment provided for in item “f”;

d) to debit result accounts; (Amended, effective January 1, 2023, by CMN Resolution No. 5,049, of November 25, 2022.)

e) to the balance of the negative adjustment to the market value of derivative financial instruments used for hedging of cash flow;

f) to the balance of the negative adjustment to the market value of derivative financial instruments recorded accounting-wise as liabilities due to changes in the institution's own credit risk, net of tax effects; and

g) to the prudential adjustments enumerated in Art. 5.

§ 1º. In the sum of the values referred to in item I of the caput, the capital increase in the authorization process must not be considered, except for the capital increase carried out by means of:

I - incorporation of reserves and accumulated profits; and

II - the deposit in a linked account mentioned in item I of the caput, item “f”.

§ 2º. For the purpose of calculating the values referred to in item I of the caput, item “g”, and item II of the caput, item “e”, the values related to the market value adjustments of derivative financial instruments used for hedging of cash flow of protected items that do not have their mark-to-market adjustments registered accounting-wise must not be considered.

§ 3º. The following must not be considered in Principal Capital:

I - resources raised but not yet fully paid up;

II - shares for which the institution has created, upon issuance, an expectation of redemption, reimbursement, amortization, repurchase, or cancellation;

III - shares whose purchase was financed, directly or indirectly, by the issuing institution or by any entity in the conglomerate; and

IV - savings deposits in savings and loan associations.

§ 4º. For the purpose of calculating the values corresponding to item II of the caput, item “b”, the respective values may be calculated considering the net position between long and short positions, provided there is no counterparty credit risk in the short positions.

§ 5º. For indirect acquisitions carried out through index operations, including derivatives, the net calculation referred to in § 4º must consider only the offsetting between long and short positions of operations whose underlying asset is the respective index, whether or not there is counterparty credit risk.

§ 6º. For the calculation of the net position mentioned in §§ 4º and 5º, the effective residual maturity of the short position must be:

I - equal to or greater than that of the long position; or

II - greater than 1 (one) year.

§ 7º. For the purpose of calculating the values referred to in item I of the caput, item “h”, and item II of the caput, item “f”, the values related to the market value adjustments of derivative financial instruments recorded accounting-wise as liabilities evaluated at market, in accordance with Article 4, § 1º, of Resolution No. 4,277, of October 31, 2013, must not be considered.

§ 8º. The negative adjustment calculated on January 1, 2025, mentioned in item I, item “i”, of the caput, must be net of fiscal effects and consider all financial instruments subject to the establishment of provisions for losses associated with credit risk, in accordance with CMN Resolution No. 4,966, of November 25, 2021. (Added, effective January 1, 2025, by CMN Resolution No. 5,199, of December 23, 2024.)

§ 9º. The value referred to in item I, item “i”, of the caput must be multiplied by: . (Added, effective January 1, 2025, by CMN Resolution No. 5,199, of December 23, 2024.)

I - 75% (seventy-five percent), until December 31, 2025; . (Added, effective January 1, 2025, by CMN Resolution No. 5,199, of December 23, 2024.)

II - 50% (fifty percent), from January 1, 2026 to December 31, 2026; . (Added, effective January 1, 2025, by CMN Resolution No. 5,199, of December 23, 2024.)

III - 25% (twenty-five percent), from January 1, 2027 to December 31, 2027; and . (Added, effective January 1, 2025, by CMN Resolution No. 5,199, of December 23, 2024.)

IV - 0% (zero percent), from January 1, 2028 onwards. (Added, effective January 1, 2025, by CMN Resolution No. 5,199, of December 23, 2024.)

Art. 5. The prudential adjustments mentioned in Art. 4, item II, item “g”, correspond to the following equity elements:

I - premiums paid in the acquisition of investments based on expectations of future profitability, net of deferred tax liabilities associated with them;

II - intangible assets;

III - actuarial assets related to defined benefit pension funds, net of deferred tax liabilities associated with them to which the financial institution does not have unrestricted access;

IV - in accordance with Art. 8, investments in:

a) entities similar to a financial institution, insurance company, reinsurer, capitalization society, and open complementary pension entity;

b) institution authorized to operate by the Central Bank of Brazil or in an institution located abroad that carries out activity equivalent to that of a financial institution in Brazil, which does not form the conglomerate;

V - non-controlling interest, in accordance with Art. 10, § 1º, in the capital of:

a) subsidiary that is an institution authorized to operate by the Central Bank of Brazil; and

b) subsidiary abroad that carries out activity equivalent to that of a financial institution in Brazil;

VI - tax credits resulting from temporary differences that depend on the generation of future taxable profits or revenues for their realization, in accordance with Art. 8;

VII - tax credits resulting from tax losses and negative base of Social Contribution on Net Profit and those originated from this contribution relating to assessment periods ending until December 31, 1998, calculated in accordance with Art. 8 of Provisional Measure No. 2,158-35, of August 24, 2001;

VIII - value corresponding to the investment in dependency, financial institution controlled abroad, or non-financial entity that forms the conglomerate, regarding which the Central Bank of Brazil does not have access to sufficient information, data, and documents for the purposes of global consolidated supervision;

IX - value of the shortfall between the provisioned value and the expected loss in exposures covered by internal credit risk classification systems (IRB approaches);

X - non-controlling interest in the capital of:

a) subsidiary in the country that is not an institution authorized to operate by the Central Bank of Brazil; and

b) subsidiary abroad that does not carry out activity equivalent to that of a financial institution in Brazil;

XI - value of the shortfall between the book value and the amount of prudential adjustments resulting from the evaluation provided for in Resolution No. 4,277, of 2013.

§ 1º. For the purpose of calculating the value relating to the equity element mentioned in item VI of the caput, it is optional to deduct from the value of tax credits resulting from temporary differences the value of deferred tax obligations of the same entity or of entities belonging to the same conglomerate, except for tax obligations associated with:

I - premiums paid in the acquisition of investments based on expectations of future profitability; and

II - actuarial assets related to defined benefit pension funds.

§ 2º. For the purpose of calculating the value relating to the equity element mentioned in item VII of the caput, it is optional to deduct from the total registered balance of tax credits resulting from tax losses and negative base of social contribution on net profit any remaining balance of deferred tax obligations resulting from the treatment provided for in § 1º.

§ 3º. Only the positive value of tax credits after the deductions mentioned in §§ 1º and 2º must be considered for the purpose of calculating the values relating to the equity elements mentioned in items VI and VII of the caput.

§ 4º. The calculation mentioned in §§ 1º to 3º must be carried out only among the tax credits and deferred tax obligations existing, separately by relevant fiscal authority, in each jurisdiction in which the financial institution or the entity part of the conglomerate has a dependency or subsidiary.

§ 5º. At the discretion of the Central Bank of Brazil, the value relating to the equity element mentioned in item VIII of the caput may be replaced by a specific value, limited to the total of assets plus the exposures not recognized in the balance sheet of the dependency or subsidiary that is not an institution authorized to operate by the Central Bank of Brazil.

§ 6º. For the purpose of calculating the value relating to the equity element mentioned in item IV of the caput, item “a”, entities similar to financial institutions are considered:

I - consortium administrators;

II - payment institutions;

III - companies that carry out the acquisition of credit operations, including real estate, such as business development companies, securitization companies, and single-purpose entities; and

IV - other legal entities headquartered in the country whose corporate object is exclusively the shareholding participation in the entities mentioned in items I to III.

§ 7º. The prudential adjustment referred to in item IV, item “a”, of the caput, includes investments in any instrument convertible into shareholding participation in the invested entity or that can be unilaterally extinguished.

§ 8º. The deduction of the prudential adjustment referred to in item IV of the caput may be calculated considering the net position in the institution between long and short positions by instrument and by invested institution.

§ 9º. For the calculation of the net position mentioned in § 8º, the effective residual maturity of the short position must be:

I - equal to or greater than that of the long position; or

II - greater than 1 (one) year.

§ 10. Tax credits from tax losses and negative base of Social Contribution on Net Profit resulting from a short position in foreign currency carried out with the objective of providing hedging of the exchange rate variation of its investments in controlled society, affiliated, branch, agency, or domicile agency located abroad recognized in the period from January 1, 2018 to December 31, 2020 must be included in item VII of the caput according to the following schedule:

I - at least 50% (fifty percent), until June 30, 2022; and

II - 100% (one hundred percent), until December 31, 2022.

§ 11. The following must not be considered in the deduction of the prudential adjustments mentioned in the caput: the values relating to losses in financial leasing to be amortized deducted in the calculation of insufficiency or subsequent depreciation.

§ 12. The prudential adjustment provided for in item V of the caput, item “a”, does not apply to the portion of non-controlling interest held, directly or indirectly, by the controller of the lead institution of the conglomerate.

§ 13. The deduction of prudential adjustments resulting from the consolidation of a subsidiary is limited to the total value of the assets of the consolidated subsidiary, plus the exposures not recognized in the balance sheet of that subsidiary.

Section II

Calculation of Supplementary Capital

Art. 6. Supplementary Capital is calculated by:

I - the sum of the values corresponding to instruments that meet the requirements established in Art. 15; and

II - the deduction of the corresponding values:

a) to investments in instruments eligible for PR issued by an institution authorized to operate by the Central Bank of Brazil or by an institution located abroad that carries out activity equivalent to that of a financial institution in Brazil, which does not form the conglomerate, in accordance with Art. 8; and

b) to shares of own issuance and to instruments that meet the requirements established in Art. 15, authorized to compose Supplementary Capital, redeemed or repurchased directly, indirectly, or synthetically, including by means of:

1. quotas of investment funds, proportionally to the participation of these instruments in the fund's portfolio;

2. entities similar to a financial institution or non-financial entities, controlled; or

3. derivative operations, including index derivatives.

§ 1º. In the deduction referred to in item II of the caput, the respective values may be calculated considering the net position in the institution between long and short positions by instrument and by invested institution.

§ 2º. For the calculation of the net position mentioned in § 1º, the effective residual maturity of the short position must be:

I - equal to or greater than that of the long position; or

II - greater than 1 (one) year.

§ 3º. The values relating to the resale in the market of instruments that meet the requirements established in Art. 15, deducted as a result of the provision in item II of the caput, item “b”, may again compose Supplementary Capital upon communication to the Central Bank of Brazil.

CHAPTER III

CALCULATION OF LEVEL II

Art. 7. Level II is calculated by:

I - the sum of the corresponding values:

a) to instruments that meet the requirements established in Art. 20; and

b) to the excess of the provisioned value over the expected loss in exposures covered by internal credit risk classification systems (IRB approaches); and

II - the deduction of the corresponding values:

a) to investments in instruments eligible for PR issued by an institution authorized to operate by the Central Bank of Brazil or by an institution located abroad that carries out activity equivalent to that of a financial institution in Brazil, which does not form the conglomerate, in accordance with Art. 8; and

b) to shares of own issuance and to instruments that meet the requirements established in Art. 20, authorized to compose Level II, redeemed or repurchased directly, indirectly, or synthetically, including by means of:

1. quotas of investment funds, proportionally to the participation of these instruments in the fund's portfolio;

2. entities similar to a financial institution or non-financial entities, controlled; or

3. derivative operations, including index derivatives.

§ 1º. The participation in the composition of Level II of the difference mentioned in item I of the caput, item “b”, is limited to a maximum equivalent to 0.6% (six tenths of a percent) of the RWACIRB portion, defined in specific regulation.

§ 2º. In the deduction referred to in item II of the caput, the respective values may be calculated considering the net position in the institution between long and short positions by instrument and by invested institution.

§ 3º. For the calculation of the net position mentioned in § 2º, the effective residual maturity of the short position must be:

I - equal to or greater than that of the long position; or

II - greater than 1 (one) year.

§ 4º. The values relating to the resale in the market of instruments that meet the requirements established in Art. 20, deducted as a result of the provision in item II of the caput, item “b”, may again compose Level II upon communication to the Central Bank of Brazil and provided that the interval between the date of resale and the maturity date is greater than 5 (five) years.

CHAPTER IV

DEDUCTION OF INVESTMENTS IN OTHER ENTITIES AND TAX CREDITS RESULTING FROM TEMPORARY DIFFERENCES

Art. 8. The following must be deducted from Principal Capital, Supplementary Capital, or Level II:

I - investments in the entities mentioned in Art. 5, item IV, item “a”, observing the provision in Art. 5, § 7º;

II - investments in Principal Capital of entities mentioned in Art. 5, item IV, item “b”;

III - the equity elements mentioned in Art. 5, item VI;

IV - investments in eligible instruments for Complementary Capital and Level II mentioned, respectively, in Art. 6, item II, letter “a”, and Art. 7, item II, letter “a”; and

V - investments in other instruments that meet the following conditions:

a) are eligible to meet the minimum regulatory requirement of an institution listed as systemically important on a global basis by the Financial Stability Board (FSB) or on a domestic basis by the competent authority; and

b) can be written off or converted into shares, as a result of the action of competent authorities during the course of a resolution regime.

§ 1º The deduction provided for in the caput must also be made for values related to the following situations:

I - direct, indirect, or synthetic acquisition of the assets mentioned in the caput through:

a) an entity similar to a financial institution or a non-financial entity, controlled;

b) derivative transactions, including index derivatives;

II - indirect participation of a credit cooperative in a cooperative bank;

III - granting of credit to third parties with knowledge, even if subsequent to the granting, that the resources are specifically intended to compose the PR of an institution authorized to operate by the Central Bank of Brazil, with the exception of credit cooperatives;

IV - acquisition of the instruments mentioned in the caput through investment fund quotas, proportionally to the participation of these in the fund's portfolio; and

V - acquisition of instruments that, during the course of a resolution regime, absorb losses prior to or concomitantly with the instruments referred to in item V of the caput.

§ 2º The value of the quota-shares corresponding to participations of credit cooperatives in the capital of central credit cooperatives or confederations of credit is not subject to the deduction provided for in the caput.

§ 3º For the purposes of the provision in item V of the caput, letter “a”, the minimum requirement is understood to be that which is intended to ensure the availability of resources for loss absorption during the course of a resolution regime and can be met by instruments eligible to compose the PR.

§ 4º For the purposes of this article, a resolution regime is defined as the restructuring process conducted by public authorities in the face of threats to the operational continuity of the institution that may have repercussions on financial stability.

§ 5º For the purposes of the provisions in §§ 6º to 8º, a participation in the following entity shall be considered significant when the institution holds more than 10% (ten percent) of the share capital of:

I - an entity similar to a non-consolidated financial institution, insurance company, reinsurer, capitalization company, and open complementary pension entity; or

II - an institution authorized to operate by the Central Bank of Brazil or an institution located abroad that exercises activity equivalent to that of a financial institution in Brazil, which does not compose the conglomerate.

§ 6º The following investments must not be deducted if their aggregated value is less than 10% (ten percent) of the value calculated according to the provision in Art. 4º, disregarding the deductions related to the equity elements mentioned in Art. 5º, items IV and VI:

I - investments in the share capital of an entity mentioned in § 5º, item I, and those convertible into equity participation in the entity or that can be unilaterally written off, in accordance with Art. 5º, § 7º, when the respective participation is not significant; and

II - investments in the instruments referred to in items II, IV, and V of the caput, when the participation in the institution mentioned in § 5º, item II, is not significant.

§ 7º The following items must be deducted from Principal Capital, observing the provision in § 8º:

I - the equity element mentioned in Art. 5º, item VI;

II - investments in the share capital of an entity mentioned in § 5º, item I, and those convertible into equity participation in the entity or that can be unilaterally written off, in accordance with Art. 5º, § 7º, when the respective participation is significant; and

III - investments in the Principal Capital of an entity mentioned in § 5º, item II, when the participation is significant.

§ 8º The items listed in § 7º are exempt from deduction from Principal Capital if they represent:

I - up to 10% (ten percent) of the value calculated in Art. 4º, disregarding the deduction provided in § 7º and the deduction of values resulting from the treatment specified in this paragraph, observing that:

a) for the value related to § 7º, item I, the indicated limit is individualized; and

b) for the values related to § 7º, items II and III, the indicated limit is applied to the aggregate of the two items;

II - in aggregate, up to 15% (fifteen percent) of Principal Capital, considering the deduction of values related to all equity elements mentioned in Art. 5º and in §§ 6º and 7º, as well as the treatment specified in this paragraph.

§ 9º After the adjustments referred to in §§ 6º to 8º, the deduction provided for in the caput must be made:

I - in the case of the value that exceeds the limit applied to the aggregated value established in § 6º:

a) in Principal Capital, for investments in the entity mentioned in § 5º, item I;

b) in each portion of the PR, in proportion to the investments made, for the other investments;

II - in the case of the instruments referred to in item V of the caput, in Level II; and

III - in the other cases, in the respective portion of the PR to which the equity element is eligible.

§ 10. In the event that the value to be deducted in the manner established in § 9º exceeds the respective portion of the PR, the excess must be deducted:

I - from Complementary Capital and Principal Capital, in that order, in the case of instruments eligible for Level II or of the instruments referred to in item V of the caput; and

II - from Principal Capital, in the case of instruments eligible for Complementary Capital.

§ 11. The credit granting provided for in § 1º, item III, must be considered as participation held by the institution in the assessment of significance referred to in § 5º, when the resources of the credit granting are intended to compose the share capital, except in the case of acquisition of equity participation authorized by the Central Bank of Brazil.

§ 12. For the purposes of §§ 6º to 10, the credit granting provided for in § 1º, item III:

I - when the institution's participation in the share capital of the investee is not significant or when applied to the exception referred to in § 11, must follow the treatment for the institution's investments provided for in § 6º, item II; and

II - when the participation is significant:

a) must follow the treatment for the institution's investments in Principal Capital provided for in §§ 7º, item III, and 8º; or

b) must be deducted in the manner of § 9º, item III, when the resources are intended to compose Complementary Capital or Level II.

Art. 9º Reciprocal acquisitions of instruments must be fully deducted when these acquisitions artificially increase Principal Capital, Level I, or PR or, in the case of the entity mentioned in Art. 5º, item IV, letter “a”, the index subject to a regulatory requirement similar to PR, of at least one of the institutions involved.

§ 1º A reciprocal acquisition constitutes an investment in an instrument eligible to compose the PR or, in the case of an institution mentioned in item in Art. 5º, item IV, letter “a”, in an instrument with characteristics similar to those eligible for PR or that compose an index subject to a regulatory requirement similar to PR, in immediate or future consideration, to the raising of resources through an instrument eligible to compose the PR of the investing institution.

§ 1º A reciprocal acquisition constitutes an investment in an instrument eligible to compose the PR or, in the case of an institution mentioned in Art. 5º, caput, item IV, letter “a”, in an instrument with characteristics similar to those eligible for PR or that is admitted for the purposes of meeting a requirement analogous to the minimum PR exigibility, in immediate or future consideration, to the raising of resources, by the said institution, through an instrument eligible to compose the PR of the investee. (Redacted, from 1/1/2025, by CMN Resolution No. 5.194, of 12/19/2024.)

§ 2º The interposition of an intermediate counterparty does not remove the deduction referred to in the caput.

§ 3º The provision in Art. 8º, § 1º applies to the provision in the caput.

§ 4º The deduction referred to in the caput must be made in the respective portion of the PR to which the equity element is eligible.

§ 5º The acquisitions mentioned in the caput must not be considered in the calculation referred to in Art. 8º.

CHAPTER V
DEDUCTION OF NON-CONTROLLING INTERESTS IN THE REFERENCE EQUITY OF THE CONGLOMERATE

Art. 10. The values of non-controlling interests in the capital of a subsidiary that is an institution authorized to operate by the Central Bank of Brazil or of a subsidiary abroad that exercises activity equivalent to that of a financial institution in Brazil that exceed the minimum requirements of Principal Capital, Level I, and PR of that subsidiary must be deducted, respectively, from Principal Capital, Level I, and PR of the conglomerate.

§ 1º For Principal Capital, the excess mentioned in the caput will be calculated using the following formula:

, where:

I - = value of the Principal Capital exceeding the respective minimum requirement of the subsidiary;

II - = Principal Capital of the subsidiary;

III - = value of risk-weighted assets (RWA) of the conglomerate attributable to the subsidiary; and

IV - = percentage of non-controlling interest in the instruments that compose the Principal Capital of the subsidiary.

§ 2º For Level I, the excess mentioned in the caput will be calculated using the following formula:

, where:

I - = value of the Level I exceeding the respective minimum requirement of the subsidiary;

II - = Level I of the subsidiary;

III - = value of risk-weighted assets (RWA) of the conglomerate attributable to the subsidiary; and

IV - = percentage of non-controlling interest in the instruments that compose the Level I of the subsidiary.

§ 3º For PR, the excess mentioned in the caput will be calculated using the following formula:

, where:

I - = value of the PR exceeding the respective minimum requirement of the subsidiary;

II - = PR of the subsidiary;

III - = value of risk-weighted assets (RWA) of the conglomerate attributable to the subsidiary; and

IV - = percentage of non-controlling interest in the instruments that compose the PR of the subsidiary.

§ 4º For the purposes of the provision in the caput, it is optional to exclude the full value of the non-controlling interest in Principal Capital, Level I, and PR of the subsidiary, observing the provision in Art. 5º, § 13.

§ 5º Debt instruments issued until December 31, 2012 must not be considered in the calculations mentioned in §§ 2º and 3º.

§ 6º For the purposes of this article, the portion of the capital of a subsidiary that is an institution authorized to operate by the Central Bank of Brazil held, directly or indirectly, by the controller of the leading institution of the conglomerate must not be considered.

CHAPTER VI
LINKED ACTIVE OPERATIONS

Art. 11. Resources delivered or placed at the disposal of the institutions mentioned in Art. 1º by third parties for the purpose of carrying out linked active operations, in accordance with Resolution No. 2.921, of January 17, 2002, are not eligible to compose the PR.

TITLE III
INSTRUMENTS THAT MAY COMPOSE THE REFERENCE EQUITY

CHAPTER I
SUBORDINATION CORE

Art. 12. The contract or document that supports the raising operation through instruments eligible to compose the PR, with the exception of items that are part of the share capital, must contain a specific chapter called Subordination Core, composed of:

I - clauses that allow evidence of compliance with the requirements for Principal Capital, Complementary Capital, and Level II, provided for, respectively, in Arts. 14, 15, and 20;

II - a clause establishing that any other clause in the contract or in another document that prejudices compliance with the requirements provided for in Arts. 14, 15, and 20 is null;

III - a clause establishing that the amendment, alteration, or revocation of the terms of the Subordination Core depends on prior authorization from the Central Bank of Brazil, in accordance with Art. 25; and

IV - a summary of the operation, containing the following information:

a) nature of the raising;

b) amount raised; and

c) structure of the disbursement flow related to the payment of amortizations and charges.

Sole Paragraph. The amendment, alteration, or revocation of the terms of the Subordination Core mentioned in the caput can only occur when business conditions are verified that, at the discretion of the Central Bank of Brazil, justify the institution's claim.

Art. 13. In raising operations whose terms are defined by more than one contract or document, the Subordination Core must contain the transcription of all clauses of the contracts or accessory instruments of the operation that establish its subordination to the principal instrument.

CHAPTER II
INSTRUMENTS ELIGIBLE FOR PRINCIPAL CAPITAL

Art. 14. Financial institutions not subject to the procedures established in Law No. 6.024, of March 13, 1974, may compose their Principal Capital with other equity elements that have been authorized to compose this portion of the PR until the entry into force of this Resolution and meet the following requirements:

I - have their liquidation subordinated to the payment of other liabilities, in the event of dissolution of the issuing institution;

II - have rights to remaining assets in the dissolution process, observing the provision in item I, proportional to the issued value;

III - provide for the perpetuity of the principal, to be liquidated only in situations of dissolution of the issuing institution or buybacks authorized by the Central Bank of Brazil;

IV - not present contractual clauses that lead to the expectation of buyback, redemption, or cancellation;

V - provide for fully variable remuneration, the payment of which must only occur with resources from profits and profit reserves eligible for distribution in the last calculation period;

VI - not provide for the obligation of remuneration;

VII - not provide for preferential remunerations relative to other equity elements authorized to compose the Reference Equity (PR);

VIII - establish its immediate use in the compensation of losses calculated by the issuing institution when accumulated profits, profit reserves, and capital reserves are exhausted;

IX - not be considered as a financial obligation, in the event of dissolution of the issuing institution;

X - be classified as equity according to internationally recognized accounting standards;

XI - not have its purchase financed, directly or indirectly, by the issuing institution;

XII - not be subject to guarantee, insurance, or any other mechanism that obliges or allows payment or transfer of resources, directly or indirectly, from the issuing institution, an entity part of the same conglomerate, or a controlled non-financial entity, to the holder of the instrument, in a way that compromises the condition of subordination expressed in this article;

XIII - be issued only after approval by the shareholders' meeting of the issuing institution or its board of directors, or other persons duly authorized by the shareholders; and

XIV - be disclosed in the balance sheet of the issuing institution in a clear and separate manner.

§ 1º In addition to the cited requirements, the elements mentioned in the caput must also:

I - be fully paid in cash;

II - provide for redemption or buyback only by the issuer, conditioned to the authorization of the Central Bank of Brazil; and

III - be acquired by the Union.

§ 2º The instruments mentioned in the caput must be registered accounting-wise as liabilities of the issuing institution and reclassified as equity for the purposes of disclosing their financial statements.

CHAPTER III
INSTRUMENTS ELIGIBLE FOR COMPLEMENTARY CAPITAL

Art. 15. To compose Complementary Capital, instruments must meet the following requirements:

I - be registered, when issued in Brazil and, when issued abroad, whenever local legislation so permits;

II - be fully paid in cash;

III - have a perpetual nature;

IV - have their payment subordinated to the payment of other liabilities of the institution, with the exception of the payment of elements that compose Principal Capital, in the event of dissolution of the issuing institution;

V - provide for the payment of their remuneration only with resources from profits and profit reserves eligible for distribution in the last calculation period;

VI - provide for the suspension of the payment of remuneration that exceeds the resources available for this purpose;

VII - provide for the suspension of the payment of remuneration, in the same proportion as the restriction imposed by the Central Bank of Brazil on the distribution of dividends or other results related to shares, quotas, or quota-shares, eligible for Principal Capital;

VIII - provide for the suspension of the payment of remuneration of the instrument in the same percentages of retention established for the payment of dividends and interest on equity or for the payment of net surpluses calculated and annual remuneration to quota-shares of capital and redemption of quota-shares, in the case of credit cooperatives, if the issuing institution presents insufficiency in meeting the Principal Capital Add-on, in accordance with specific regulation, or the payment causes disqualification regarding the minimum requirements of Principal Capital, Level I, and PR;

IX - have redemption or buyback, even if carried out indirectly through an entity part of the same conglomerate or by a controlled non-financial entity, conditioned to the authorization of the Central Bank of Brazil;

X - be redeemable only by the issuer's initiative;

XI - not be subject to guarantee, insurance, or any other mechanism that obliges or allows payment or transfer of resources, directly or indirectly, from the issuing institution, an entity of the conglomerate, or a controlled non-financial entity, to the holder of the instrument, in a way that compromises the condition of subordination expressed in this article;

XII - not possess clauses that, directly or indirectly, alter the originally raised amount, including through agreements that oblige the issuing institution to compensate the investor if a new instrument is issued with better remuneration conditions, with the exception of cases of buyback and redemption provided for in Art. 16;

XIII - not contain clauses that provide for variation of remuneration conditions after the issuance of the instrument, including due to fluctuations in the credit quality of the issuing institution;

XIV - not have its purchase financed, directly or indirectly, by the issuing institution;

XV - provide for permanent extinction and in value at least corresponding to the balance calculated in Level I, or, as defined in §§ 2º and 3º, conversion of the same value into shares of the issuing institution eligible for Principal Capital, in the following situations:

a) disclosure by the issuing institution, in the manner established by the Central Bank of Brazil, that its Principal Capital is at a level below 5.125% (five and one hundred twenty-five thousandths percent) of the RWA amount, calculated in the manner established by specific regulation;

b) signing of a capital contribution commitment for the issuing institution, if it constitutes the exception provided for in the caput of Art. 28 of Complementary Law No. 101, of May 4, 2000;

c) decree by the Central Bank of Brazil of a special temporary administration regime or intervention in the issuing institution; or

d) determination by the Central Bank of Brazil of extinction or conversion, according to criteria established in specific regulation issued by the Monetary Council;

XVI - contain a clause establishing that the occurrence of the situations provided for in items V, VI, VII, VIII, XV, and XVIII will not be considered as an event of default or other factor that generates the acceleration of maturity of debts in any legal transaction in which the issuing institution participates;

XVII - provide that the remuneration not paid due to the clause referred to in item V and the remuneration related to the period of suspension carried out due to the provision in items VI, VII, and VIII will be considered extinguished; and

XVIII - contain a clause providing that the extinction or conversion referred to in item XV will not occur in the cases of revision or republication of documents that have been used by the issuing institution as a basis for disclosing the proportion between Principal Capital and the RWA amount, provided for in item XV, letter “a”.

§ 1º In the event of issuance abroad, instruments eligible to compose Complementary Capital must contain a clause electing the forum in which the requirements for the instrument are recognized, to resolve any judicial disputes.

§ 2º The conversion mentioned in item XV of the caput must meet the following requirements:

I - the issuing institution must possess all necessary internal authorizations for the issuance of the instrument eligible for Complementary Capital and the shares to be used in the conversion, including the authorized capital referred to in Art. 168 of Law No. 6.404, of December 15, 1976, in a value sufficient to cover any capital increase resulting from the conversion;

II - the conversion into shares must occur prior to the effective entry of the resources related to the situation provided for in letter “b” of item XV of the caput; and

III - in the conversion into shares, a maximum limit must be established on the quantity of shares to be delivered to the investor.

§ 3º When requesting the authorization referred to in Art. 25, the issuing institution must assume in writing, before the Central Bank of Brazil, the commitment to preserve the limit of authorized capital referred to in Art. 168 of Law No. 6.404, of 1976, necessary for eventual conversion of the instruments into shares, in the manner of item XV of the caput and § 2º, item I, during the period in which the credits represented by the instruments remain due.

§ 4º The contract with a clause for conversion into shares must provide for the permanent extinction of the debt in cases where the investor may waive the right to receive the shares.

§ 5º The provision in item XIII of the caput does not allow the agreement of clauses that increase or decrease interest, stipulate additional values to be paid, or alter in any other way the remuneration of the instrument.

Art. 16. Instruments eligible to compose Complementary Capital may be issued with a buyback or redemption option clause by the issuer, provided that the following requirements are met:

I - minimum interval of 5 (five) years between the issuance date and the first date of exercise of the buyback or redemption option;

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II - contractual provision that the exercise of the buyback or redemption option be conditioned, on the date of exercise, on authorization from the Central Bank of Brazil; and

III - absence of characteristics that create the expectation that the buyback or redemption will be exercised.

Art. 17. Authorization for the buyback or redemption of instruments authorized to compose Supplementary Capital may be granted, provided that:

I - the issuing institution meets the minimum requirements for Principal Capital, Level I, and PR, and complies with the Principal Capital Add-on, as defined in specific regulation;

II - the buyback or redemption does not result in non-compliance with the requirements and limits or insufficiency of the Principal Capital Add-on mentioned in item I; and

III - the institution expresses to the Central Bank of Brazil its intention to exercise the buyback or redemption option, observing the conditions established in Arts. 18 and 19.

Art. 18. The buyback or redemption of instruments authorized to compose Supplementary Capital, even if carried out indirectly through an entity within the conglomerate or a controlled non-financial entity, may only be permitted in the following scenarios:

I - issuance of new instruments eligible for Supplementary Capital, in an amount equivalent to that of the bought back or redeemed instruments and under more favorable agreed conditions; or

II - proof of business conditions that, at the discretion of the Central Bank of Brazil, justify the institution's claim.

Art. 19. The timeframes and conditions established for the buyback or redemption of instruments authorized to compose Supplementary Capital also apply to the rescission of the contract or document supporting the funding operation.

CHAPTER IV
OF THE INSTRUMENTS ELIGIBLE FOR LEVEL II

Art. 20. To compose Level II, instruments must meet the following requirements:

I - be registered in the name of the holder, when issued in Brazil, and, when issued abroad, whenever local legislation permits;

II - be fully paid in cash;

III - provide for a minimum interval of 5 (five) years between the issuance date and the maturity date, not allowing for the payment of amortizations before this interval has elapsed;

IV - have its payment subordinated to the payment of the institution's other liabilities, with the exception of the payment of elements composing Principal Capital and Supplementary Capital, in the event of the issuing institution's dissolution;

V - have early buyback or redemption, even if carried out indirectly through an entity within the conglomerate or a controlled non-financial entity, conditioned on authorization from the Central Bank of Brazil;

VI - be redeemable only at the issuer's initiative;

VII - not be subject to guarantee, insurance, or any other mechanism that obligates or allows payment or transfer of resources, directly or indirectly, from the issuing institution, a conglomerate entity, or a controlled non-financial entity, to the instrument holder, thereby compromising the subordination condition expressed in this article;

VIII - not contain clauses providing for variation in timeframes or remuneration conditions between issuance and maturity, including due to fluctuations in the credit quality of the issuing institution;

IX - not have its purchase financed, directly or indirectly, by the issuing institution;

X - provide for the permanent extinction, in value at least equivalent to the balance computed in Level II, or, as defined in §§ 2 and 3, the conversion of that same value into shares of the issuing institution eligible for Principal Capital, in the following situations:

a) disclosure by the issuing institution, in the manner established by the Central Bank of Brazil, that its Principal Capital is at a level below 4.5% (four and five-tenths percent) of the RWA amount, calculated as established by specific regulation;

b) signing of a capital contribution commitment for the issuing institution, if the exception provided in the caput of Art. 28 of Law No. 101, of 2000, applies;

c) decree by the Central Bank of Brazil of a temporary special administration regime or intervention in the issuing institution; or

d) determination by the Central Bank of Brazil of extinction or conversion, according to criteria established in specific regulation issued by the Monetary Council;

XI - contain a clause establishing that the occurrence of the situations provided for in items X and XII will not be considered a default event or other factor that generates the early maturity of debts in any legal transaction in which the issuing institution participates; and

XII - contain a clause providing that the extinction or conversion referred to in item X will not occur in the cases of review or republication of documents that have been used by the issuing institution as a basis for disclosing the proportion between Principal Capital and the RWA amount, provided for in item X, letter “a”.

§ 1º In the case of issuance abroad, instruments eligible to compose Level II must contain a clause choosing a forum in which the requirements for the instrument are recognized, to resolve any judicial disputes.

§ 2º The conversion mentioned in item X of the caput must meet the following conditions:

I - the issuing institution must possess all necessary internal authorizations for the issuance of the instrument eligible to compose Level II and the shares to be used in the conversion, including the authorized capital referred to in Art. 168 of Law No. 6.404, of 1976, in an amount sufficient to cover any capital increase resulting from the conversion;

II - the conversion into shares must occur prior to the actual entry of resources related to the situation provided for in item X of the caput, letter “b”; and

III - the conversion into shares must establish a maximum limit on the quantity of shares to be delivered to the investor.

§ 3º When requesting the authorization referred to in Art. 25, the issuing institution must assume in writing, before the Central Bank of Brazil, the commitment to preserve the limit of authorized capital referred to in Art. 168 of Law No. 6.404, of 1976, necessary for the eventual conversion of instruments into shares, as per item X of the caput and § 2, item I, during the period in which the credits represented by the instruments remain due.

§ 4º The contract with a share conversion clause must provide for the permanent extinction of the debt in cases where the investor may waive the right to receive the shares.

§ 5º The provision in item VIII of the caput does not allow for the agreement of clauses that increase or decrease interest, stipulate additional values to be paid, or otherwise alter the remuneration of the instrument in any way.

Art. 21. Instruments eligible to compose Level II may be issued with a clause providing for the issuer's option for early buyback or redemption, provided that the following requirements are met:

I - a minimum interval of 5 (five) years between the issuance date and the first date of exercise of the option for early buyback or redemption;

II - contractual provision that the exercise of the option for early buyback or redemption be conditioned, on the date of exercise, on authorization from the Central Bank of Brazil; and

III - absence of characteristics that create the expectation that the early buyback or redemption will be exercised.

Art. 22. Authorization for the early buyback or redemption of instruments authorized to compose Level II may be granted, provided that:

I - the issuing institution meets the minimum requirements for Principal Capital, Level I, and PR, and complies with the Principal Capital Add-on, as defined in specific regulation;

II - the buyback or redemption does not result in non-compliance with the requirements and limits or insufficiency of the Principal Capital Add-on, mentioned in item I; and

III - the institution expresses to the Central Bank of Brazil its intention to exercise the buyback or redemption option, observing the conditions established in Arts. 23 and 24.

Art. 23. The buyback or redemption of instruments authorized to compose Level II, even if carried out indirectly, through an entity within the conglomerate or a controlled non-financial entity, may only be permitted in the following scenarios:

I - issuance of new instruments eligible for Level II, with an effective maturity period greater than or equal to the remaining term of the bought back or redeemed instruments, in an amount equivalent to those and under more favorable agreed conditions; or

II - proof of business conditions that, at the discretion of the Central Bank of Brazil, justify the institution's claim.

Art. 24. The timeframes and conditions established for the buyback or redemption of instruments authorized to compose Level II also apply to the rescission of the contract or document supporting the funding operation.

CHAPTER V
OF THE AUTHORIZATION FOR PRINCIPAL CAPITAL, SUPPLEMENTARY CAPITAL, AND LEVEL II

Art. 25. The effectively paid amounts related to capital or debt instruments, with the exception of the items mentioned in Art. 4, item I, may only compose Principal Capital, Supplementary Capital, and Level II with authorization from the Central Bank of Brazil.

§ 1º For the purposes of the authorization mentioned in the caput, the Subordination Core mentioned in Art. 12 must, unless specific regulation applies, be submitted to the Central Bank of Brazil, which will consider, among other elements, the payment structure and, for Level II, the maturity term.

§ 2º To be authorized to compose Principal Capital, Supplementary Capital, and Level II, instruments must:

I - be issued by an institution authorized to operate by the Central Bank of Brazil or by its branch or subsidiary abroad, provided that the latter are not constituted as a special purpose vehicle or a special purpose entity, regardless of their legal form;

II - possess, at the time of issuance, a minimum unit nominal value of R$300,000.00 (three hundred thousand reais) or equivalent in foreign currency;

III - be registered in a registration and financial settlement system for assets authorized by the Central Bank of Brazil or by the Securities and Exchange Commission (CVM); and

IV - include, in the registration, the components of the Subordination Core provided for in Art. 12.

§ 3º In the case of instruments issued abroad, the authorization request referred to in this article must be accompanied by a legal opinion, issued by a law firm qualified in the jurisdiction whose legislation applies to the instrument, attesting, without reservation, the adequacy of the instrument's clauses to said legislation.

CHAPTER VI
OF THE EXTINCTION AND CONVERSION OF THE DEBT BALANCE OF INSTRUMENTS AUTHORIZED TO COMPOSE SUPPLEMENTARY CAPITAL AND LEVEL II

Art. 26. The Central Bank of Brazil may determine the extinction of the debt balance of instruments authorized to compose Supplementary Capital or Level II, or the conversion of these instruments into shares of the issuing institution, in accordance with Art. 11 of Law No. 12.838, of July 9, 2013, when it considers the measure necessary to enable the continuity of that institution and, at the same time, to mitigate relevant risks to the regular functioning of the financial system or the payment system.

§ 1º For the purposes of this Resolution, risk to the continuity of the institution is characterized by the non-compliance with a determination from the Central Bank of Brazil to increase the amounts of PR, Level I, or Principal Capital, and simultaneously, the calculation of at least one of the following situations:

I - material deterioration:

a) of the value and liquidity of its assets;

b) of its solvency status; or

c) of its credibility, characterized by a significant reduction in the volume of funding; and

II - an increase in the risk of default resulting in the activation of guarantee mechanisms and safeguards of clearinghouses and settlement service providers, as per specific legislation of the Brazilian Payment System (SPB).

§ 2º For the purposes of this Resolution, relevant risk to the regular functioning of the financial system is characterized by the possibility that the discontinuation of the institution may:

I - compromise the operations of other institutions or relevant market segments, which may generate uncertainty regarding the solidity of the financial system or the payment system; or

II - cause significant harm to the provision, at adequate levels, of a service considered essential to the financial system or the payment system.

§ 3º Instruments authorized to compose Supplementary Capital must have their debt balance extinguished or converted into shares before instruments authorized to compose Level II.

§ 4º The Central Bank of Brazil may only determine:

I - the extinction of the debt balance of an instrument that presents the extinction clause referred to in Arts. 15, item XV, or 20, item X, as established therein; or

II - the conversion into shares of an instrument that presents the conversion clause referred to in Arts. 15, item XV, or 20, item X, as established therein.

Art. 27. Issuing institutions of instruments authorized to compose PR must prepare and permanently update an action plan for the eventual occurrence of the extinction or conversion provided for in Art. 15, item XV, and Art. 20, item X.

§ 1º The action plan referred to in the caput must include:

I - the measures to be taken to fulfill any obligations and other operational procedures related to the extinction or conversion process; and

II - the precautions and procedures necessary for the extinction or conversion to occur in a transparent and organized manner.

§ 2º The action plan mentioned in the caput must be part of the capital contingency plan established in Resolution No. 4.557, of February 23, 2017.

Art. 28. It is the responsibility of the board of directors or, in its absence, the management of the issuing institution of instruments eligible for PR:

I - to give full knowledge of the action plan mentioned in Art. 27 to the holders of rights over these instruments; and

II - to disclose and inform the Central Bank of Brazil, according to procedures established by this Autarchy, regarding situations related to the extinction or conversion mentioned in the caput of Art. 26.

TITLE IV
OF THE REDUCERS APPLIED TO REFERENCE EQUITY

SINGLE CHAPTER
OF THE REDUCERS APPLIED TO DEBT INSTRUMENTS ELIGIBLE FOR REFERENCE EQUITY

Art. 29. A reducer will be applied to the balances of capital or debt instruments authorized to compose Level II that have a maturity term, observing the following schedule:

I - 20% (twenty percent), from the 60th (sixtieth) month to the 49th (forty-ninth) month prior to the respective maturity;

II - 40% (forty percent), from the 48th (forty-eighth) month to the 37th (thirty-seventh) month prior to the respective maturity;

III - 60% (sixty percent), from the 36th (thirty-sixth) month to the 25th (twenty-fifth) month prior to the respective maturity;

IV - 80% (eighty percent), from the 24th (twenty-fourth) month to the 13th (thirteenth) month prior to the respective maturity; and

V - 100% (one hundred percent), in the 12 (twelve) months prior to the respective maturity.

Art. 30. Instruments authorized to compose PR before October 1, 2013, must not have their balances recognized, for the purposes of calculating each of the levels of PR according to the rules established in this Resolution.

Sole Paragraph. The instruments mentioned in the caput that meet the criteria defined in Art. 15 and the criteria defined in Art. 20 may compose, respectively, Supplementary Capital and Level II in full, subject to new authorization from the Central Bank of Brazil.

Art. 31. The amount of resources from the funds referred to in Law No. 7.827, of September 27, 1989, Art. 10 of Law No. 7.998, of January 11, 1990, and Law No. 8.036, of May 11, 1990, recognized in Level II is limited to the following percentages, applied to the value of these resources computed in the mentioned level on June 30, 2018:

I - 70% (seventy percent), from January 1, 2022;

II - 60% (sixty percent), from January 1, 2023;

III - 50% (fifty percent), from January 1, 2024;

IV - 40% (forty percent), from January 1, 2025;

V - 30% (thirty percent), from January 1, 2026;

VI - 20% (twenty percent), from January 1, 2027;

VII - 10% (ten percent), from January 1, 2028; and

VIII - 0% (zero percent), from January 1, 2029.

§ 1º The limit referred to in the caput does not apply to resources from the mentioned funds authorized to compose Level II after August 2, 2018.

§ 2º The resources subject to the limit established in the caput are not subject to Arts. 29 and 30.

TITLE V
FINAL PROVISIONS

Art. 32. The mention of Adjusted Equity (PLA) in normative acts issued by the Central Bank of Brazil, relating to operational limits, refers to the definition of PR established in this Resolution.

Sole Paragraph. The provision in the caput does not apply to the minimum limits of paid-in capital and equity provided for in Annex II Regulation of Resolution No. 2.099, of August 17, 1994.

Art. 33. The Central Bank of Brazil will regulate the procedures to be observed for:

I - obtaining the authorizations provided for in this Resolution;

II - disclosure of information related to the calculation of PR;

III - compliance with the provisions of Art. 14, § 2º; and

IV - compliance with the provisions of Art. 5, § 10.

Sole Paragraph. The provision in the caput does not apply to the minimum limits of paid-in capital and equity provided for in Annex II Regulation of Resolution No. 2.099, of 1994.

Art. 34. The Central Bank of Brazil may determine that the values related to instruments authorized to compose Principal Capital, Supplementary Capital, and Level II, in accordance with Arts. 14, 15, and 20, be disregarded for the calculation of PR, if non-compliance with the requirements and conditions established in this Resolution is found.

Art. 35. The following are revoked:

I - Resolution No. 4.192, of March 1, 2013;

II - Resolution No. 4.278, of October 31, 2013;

III - Resolution No. 4.311, of February 20, 2014;

IV - Resolution No. 4.400, of February 27, 2015;

V - Resolution No. 4.442, of October 29, 2015;

VI - Art. 35 of Resolution No. 4.606, of October 19, 2017;

VII - Resolution No. 4.703, of December 19, 2018;

VIII - Art. 26, item II, of Resolution No. 4.721, of May 30, 2019;

IX - Resolution No. 4.770, of December 19, 2019; and

X - Art. 1 of CMN Resolution No. 4.851, of August 27, 2020.

Art. 36. This Resolution enters into force on January 3, 2022.

Roberto de Oliveira
Campos Neto
President of the Central Bank of Brazil