Regulatory Alerts2020-06-29 | Circular 4034Central Bank of Brazil Circular No. 4034 Amending Circular No. 3.809 Regarding Risk Mitigating Instruments for Credit Risk RWA
The Central Bank of Brazil issued Circular No. 4034 to amend Circular No. 3.809/2016, specifically modifying Article 30 to exclude payroll-deducted credit card exposures from certain guarantees effective September 1, 2018. The amendment mandates that for credit operations guaranteed by the Investment Guarantee Fund (FGI) under the Emergency Credit Access Program (PEAC), the original risk weight must be applied if the fund's stop-loss coverage is insufficient to cover overdue amounts exceeding 90 days. This regulation supersedes the sole paragraph of Article 30 of the previous circular and entered into force upon publication.
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