RegAlert2016-07-28 | Resolução CMN 4512Added
CMN Resolution No. 4512 — Accounting Procedures for Passive Provisions for Financial Guarantees
Financial institutions and other entities authorized by the Central Bank of Brazil must establish passive provisions to cover losses associated with financial guarantees provided, evaluating these losses based on recognized credit risk management models and reevaluating them at least monthly. The resolution mandates the disclosure of guaranteed values, provision amounts, and key criteria in financial statement notes, and requires maintaining related documentation for a minimum of five years. These accounting procedures apply prospectively starting January 1, 2017, with specific transition rules for initial adjustments and reclassification of existing provisions.
BCB published 15 documents in the last 30 days — get each new one by email the day it lands.
The Central Bank of Brazil, pursuant to Article 9 of Law No. 4,595 of December 31, 1964, makes public that the National Monetary Council, in a session held on July 28, 2016, based on Article 4, items VIII and XII, of the aforementioned Law, and considering the provisions of Article 61 of Law No. 11,941 of May 27, 2009,
R E S O L V E D:
Art. 1 Financial institutions and other institutions authorized to operate by the Central Bank of Brazil must establish provisions to cover losses associated with financial guarantees provided in any form, in the appropriate liability account, with the period's result as the counterpart.
Read the rest free, and get an email when BCB publishes again
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
More like this from BCB
BCB published 15 documents in the last 30 days. We email you each new one the day it's published.