Instruction Normative BCB No. 394 — Amends Instruction Normative No. 101 of April 26, 2021, regarding procedures for submitting information on market risk, IRRBB, and RWA exposures

INSTRUCTION NORMATIVE BCB NO. 394, OF JUNE 23, 2023

Amends
Instruction Normative No. 101, of April 26, 2021, which provides for the procedures for submitting information regarding exposures to market risk, to the risk of variation in interest rates on instruments classified in the banking book (IRRBB), and to exposures related to the calculation of Risk-Weighted Assets (RWA) for market risk, used for the purpose of calculating the minimum requirements for Reference Equity (RE), Tier 1, Core Capital, and the Core Capital Surcharge, as provided in Resolution BCB No. 84, of March 31, 2021.

The Head of the Department of Financial System Monitoring (Desig), in the exercise of the authority conferred upon him by arts. 23, item I, letter “a”, and 77, item IV, of the Internal Regulations of the Central Bank of Brazil, annexed to Ordinance No. 84.287, of February 27, 2015, and having regard to the provisions of CMN Resolutions Nos. 4.553, of January 30, 2017, and 4.557, of February 23, 2017, Circular No. 3.876, of January 31, 2018, and BCB Resolutions Nos. 84, of March 31, 2021, 197, of March 11, 2022, 265, of November 25, 2022, and 328, of June 14, 2023,

R E S O L V E:

Art. 1º Instruction Normative No. 101, of April 26, 2021, shall be amended as follows:

“Art. 1º ...........................................................................................................

.........................................................................................................................

§ 3º The provisions of this Instruction Normative apply to all prudential conglomerates classified in S1, S2, S3, or S4, as established in Resolution No. 4.553, of January 30, 2017, and BCB Resolution No. 197, of March 11, 2022.

§ 4º The provisions of this Instruction Normative do not apply:

I - to payment institutions not belonging to a prudential conglomerate; and

II - to institutions belonging to a Type 2 prudential conglomerate.” (NR)

“Art. 3º ............................................................................................................

I - by the lead institution of each prudential conglomerate, on a consolidated basis, regarding the information of the institutions comprising the conglomerate, in accordance with the consolidation adopted for the calculation of Reference Equity;

II - by financial institutions and other institutions authorized to operate by the Central Bank of Brazil, not belonging to a prudential conglomerate, and by cooperatives not part of organized systems of three or two levels; and

III - by cooperative banks, by credit confederations, by service confederations constituted by central credit cooperatives or by central credit cooperatives, regarding the information of all cooperatives comprising organized systems of three or two levels, on an individual basis.

§ 1º Payment institutions that are the lead institutions of Type 3 prudential conglomerates are included in item I.

§ 2º The information referred to in the main text must be submitted starting from the first reporting date on which the institution authorized to operate by the Central Bank of Brazil is effectively operational.” (NR)

Art. 2º This Instruction Normative enters into force:

I - on October 1, 2023, regarding Art. 1º, in the part that amends items II and III of Art. 3º of Instruction Normative BCB No. 101, of 2021; and

II - on July 1, 2023, regarding the remaining provisions.

Gilneu Francisco Astolfi Vivan

NOTE

The Market Risk Statement (DRM) – Document 2060, aims to collect information regarding exposures to market risk, to the risk of variation in interest rates on instruments classified in the banking book (IRRBB), and to exposures related to the calculation of Risk-Weighted Assets (RWA) for market risk, used for the purpose of calculating the minimum requirements for Reference Equity (RE), Tier 1, Core Capital, and the Core Capital Surcharge of financial institutions and other institutions authorized to operate by the Central Bank of Brazil classified in Segment 1 (S1), Segment 2 (S2), Segment 3 (S3), or Segment 4 (S4).

2. This BCB Instruction Normative promotes adjustments to IN BCB No. 101, of April 26, 2021, which establishes the procedures for submitting the DRM, in view of the issuance of BCB Resolution No. 328, of June 14, 2023, with the following changes:

I - inclusion of Type 3 conglomerates in the list of institutions that must submit the DRM;

II - provision for the submission of information from cooperatives belonging to organized systems of three or two levels to be made centrally by the cooperative systems; and

III – inclusion of a clarifying command that the information must be prepared and submitted starting from the first reporting date on which the institution authorized to operate by the Central Bank of Brazil is effectively operational.

3. Decree No. 10.411, of June 30, 2020, regulated the conduct of regulatory impact analysis (AIR) as a prerequisite for the issuance of normative acts. However, in its article 4º, it establishes the hypotheses for exemption from conducting an AIR. This Instruction Normative falls under the hypotheses of items II and III, namely: II - normative act intended to regulate rights or obligations defined in a hierarchically superior norm that does not allow, technically or legally, different regulatory alternatives; and III - normative act considered to have low impact. Thus, based on items II and III of art. 4º of Decree No. 10.411, of 2020, I understand that the issuance of this Instruction Normative is exempt from conducting an AIR.

Gilneu Francisco Astolfi Vivan
Head of the Department of Financial System Monitoring (Desig)