Regulatory Alerts2020-06-03 | Circular 4024Circular No. 4024 — Amends Circular No. 3,644 of March 4, 2013 Regarding the Standardized Approach for Credit Risk Capital Requirements
The Board of Directors of the Central Bank of Brazil issued Circular No. 4024 to amend Circular No. 3,644, updating the procedures for calculating capital requirements for credit risk exposures under the standardized approach. The amendment introduces new risk weight categories for foreign central government operations with high external credit ratings and cash holdings in those currencies. It also establishes specific conditions for credit operations to be amortized using resources from the Energy Development Account (CDE), including fiduciary cession of rights and liquidity reserve requirements.
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