CMN Resolution No. 4814 - Amends Resolution No. 4,677 of July 31, 2018, which establishes maximum exposure limits per client and maximum limits for concentrated exposures

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 April 30, 2020, based on Articles 4, items VIII and X, of the aforementioned Law, Articles 9 and 10 of Law No. 4,728 of July 14, 1965, Article 20, § 1, of Law No. 4,864 of November 29, 1965, Articles 7 and 23, item "a", of Law No. 6,099 of September 12, 1974, Article 1, § 1, and Article 12 of Complementary Law No. 130 of April 17, 2009, and Article 1, § 2 of Provisional Measure No. 2,192-70 of August 24, 2001,

R E S O L V E S:

Article 1. Resolution No. 4,677 of July 31, 2018, shall enter into force with the following alterations:

"Article 8. ......................................................

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§ 1. ..........................................................

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VI - the interfinancial transfers carried out between institutions belonging to the same cooperative credit system, intended for the granting of financing or loans to members, involving resources captured under the auspices of rural credit regulations or interest rate equalization, or resources resulting from other credit lines, provided that the condition established in § 3 is met;

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§ 3. It is a condition for the exercise of the provisions of § 1, item VI, that the instruments formalizing or representing the relationship between the transferring institution and the receiving institution, and between the receiving institution and the borrowing member, contain a prerogative in favor of the transferring institution, which can be exercised at any time and in an unconditional and unilateral manner, allowing for the direct collection from the member of the future installments of the individual financing or loans." (New Text)

"Article 17. .....................................................

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§ 6. The provisions of the main text do not apply to the exposure of a cooperative bank, a central credit cooperative, or a confederation of central cooperatives towards a member of a singular credit cooperative, provided that the following conditions are cumulatively met:

I - the exposure involves resources captured in the form of interfinancial transfers by the cooperative bank, the central credit cooperative, or the confederation of central cooperatives, intended for the granting of financing or loans to a member of a singular credit cooperative belonging to the same cooperative credit system;

II - the resources mentioned in item I are captured from an entity not belonging to the respective cooperative credit system; and

III - the credit risk of the exposure is formally and fully assumed by the singular credit cooperative of which the member is a part.

§ 7. For the purposes of observing the limits established in this Resolution, the existence of exposure under the terms of § 6 implies the recognition, by the cooperative bank, the central credit cooperative, or the confederation of central cooperatives, of the member as the counterparty of the exposure, instead of the provider of the instrument mitigating the credit risk." (New Text)

"Article 22. .....................................................

§ 1. ..........................................................

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III - the interfinancial transfers carried out between institutions belonging to the same cooperative credit system, intended for the granting of financing or loans to members, involving resources captured under the auspices of rural credit regulations or interest rate equalization, or resources resulting from other credit lines, provided that the condition established in § 2 is met;

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§ 2. It is a condition for the exercise of the provisions of § 1, item III, that the instruments formalizing or representing the relationship between the transferring institution and the receiving institution, and between the receiving institution and the borrowing member, contain a prerogative in favor of the transferring institution, which can be exercised at any time and in an unconditional and unilateral manner, allowing for the direct collection from the member of the future installments of the individual financing or loans." (New Text)

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

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