RegAlert2018-10-29 | Resolução CMN 4693Added
CMN Resolution No. 4693 — Sets Conditions and Limits for Credit Operations with Related Parties by Financial Institutions and Leasing Companies
This resolution establishes the conditions and limits for credit operations conducted by financial institutions and leasing companies with related parties, requiring that such transactions be executed at market-compatible terms without additional benefits. It caps the total outstanding balance of these operations at 10% of adjusted net worth, with individual limits of 1% for natural persons and 5% for legal entities, while defining specific exclusions for certain public enterprises and interbank transactions. Institutions must establish a formal policy for these operations by April 1, 2019, maintain updated records of related parties for five years, and ensure compliance with independence criteria for directors in specific joint-director scenarios.
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CMN Resolution No. 4693
The Central Bank of Brazil, pursuant to Article 9 of Law No. 4,595 of December 31, 1964, makes it public that the National Monetary Council, in a session held on October 29, 2018, based on the provisions of Articles 34, §§ 4 and 6, of said Law, Articles 7 and 23 of Law No. 6,099 of September 12, 1974, and Complementary Law No. 130 of April 17, 2009,
RESOLVES:
Art. 1. This Resolution sets forth the conditions and limits for the realization of credit operations with related parties by financial institutions and leasing companies, for the purposes of the provisions of Article 34 of Law No. 4,595 of December 31, 1964.
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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
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