CMN Resolution No. 5137 — Criteria for Provisioning for Probable Losses in Credit Operations Related to Climate Events in Rio Grande do Sul

Resolution No. 5,137

RESOLUTION
CMN No. 5,137, OF MAY 23, 2024

Regulatory document revoked, as of 1/1/2025, by CMN Resolution No. 4,966, of November 25, 2021.

Establishes the criteria for the establishment, by December 31, 2024, of provisions for probable losses in credit operations carried out within the scope of federal programs aimed at addressing the economic consequences derived from climate events in the state of Rio Grande do Sul.

The Central Bank of Brazil, in accordance with Art. 9 of Law No. 4,595, of December 31, 1964, makes public that the National Monetary Council, in a session held on May 23, 2024, based on Art. 4, items VIII and XII, of the aforementioned law, and considering the provisions of Art. 61 of Law No. 11,941, of May 27, 2009,

RESOLVES:

Art. 1 This Resolution establishes the criteria for the establishment, by December 31, 2024, of provisions for probable losses in credit operations carried out, within the scope of federal programs aimed at addressing the economic consequences derived from climate events in the state of Rio Grande do Sul, 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 to consortium administrators, payment institutions, securities brokerage firms, securities distribution companies, and foreign exchange brokerage firms, which must observe the regulations issued by the Central Bank of Brazil in the exercise of their legal duties.

Art. 2 The institutions mentioned in Art. 1 must establish provisions in amounts sufficient to cover probable losses in credit operations carried out within the scope of federal programs aimed at addressing the economic consequences derived from climate events in the state of Rio Grande do Sul.

§ 1 In the credit operations referred to in the caput whose credit risk is partially or fully assumed by the Union, directly or through a guarantee fund or a financial institution controlled by it, in the event of a delay in the payment of principal or interest exceeding 90 (ninety) days, the institutions mentioned in Art. 1 must:

I - observe the following minimum provision levels, without prejudice to the institution's responsibility for establishing provisions in amounts sufficient to cover the total probable loss in the realization of these assets:

a) delay between 91 (ninety-one) and 120 (one hundred and twenty) days: 30% (thirty percent);

b) delay between 121 (one hundred and twenty-one) and 150 (one hundred and fifty) days: 50% (fifty percent);

c) delay between 151 (one hundred and fifty-one) and 180 (one hundred and eighty) days: 70% (seventy percent); and

d) delay exceeding 180 (one hundred and eighty) days: 100% (one hundred percent); and

II - write off the operation due to losses associated with credit risk if it is not probable that the institution will recover its value.

§ 2 The provisions of Arts. 6 and 7 of Resolution No. 2,682, of December 21, 1999, do not apply to the operations referred to in § 1.

Art. 3 The institutions mentioned in Art. 1 must keep available to the Central Bank of Brazil, for a period of at least five years, the documentation related to the operations covered by this Resolution.

Art. 4 If the Central Bank of Brazil identifies inadequacy or insufficiency in the measurement of the provision for losses associated with credit risk, it may determine the establishment of a supplementary provision.

Art. 5 This Resolution enters into force on the date of its publication.

ROBERTO DE OLIVEIRA CAMPOS NETO
President of the Central Bank of Brazil