Instruction Normative BCB No. 503 of August 7, 2024

Resolution No. 222

INSTRUCTION NORMATIVE BCB NO. 503, OF AUGUST 7, 2024

Amends Instruction Normative BCB No. 179, of October 25, 2021, which consolidates and updates the procedures for the submission of the Combined Balance Sheet of the Cooperative System, as provided for in Circular No. 3,669, of October 2, 2013.

The Head of the Department of Financial System Monitoring (Desig), in the exercise of the authority conferred upon him by Art. 23, item I, letter “a” of the Internal Regulations of the Central Bank of Brazil, published through Resolution BCB No. 340, of September 21, 2023, based on Art. 85, item I, letter “b” of said Regulations, and in view of the provisions of CMN Resolutions Nos. 4,151, of October 20, 2012, 4,858, of October 23, 2020, and 4,966, of November 25, 2021, Circular No. 3,669, of October 2, 2013, Resolution BCB No. 352, of November 23, 2023, and Instruction Normatives BCB Nos. 426, 427, 428, 429, 430, 431, 432 and 433, all of December 1, 2023,

RESOLVES:

Art. 1st. The new versions of the filling instructions and the Layout of documents with code 4413 - Combined Balance Sheet of the Cooperative System: cooperative commercial bank and multiple cooperative bank, 4423 - Combined Balance Sheet of the Cooperative System: credit confederations and 4433 - Combined Balance Sheet of the Cooperative System: central credit cooperatives, available on the Central Bank of Brazil website at the electronic address https://www.bcb.gov.br/estabilidadefinanceira/leiautedocumentoscrd, shall come into force, starting from the January 2025 reporting date, with the following modifications:

I - alteration of the accounting rubrics of the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif), as defined in Instruction Normatives BCB Nos. 426, 427, 428, 429, 430, 431, 432 and 433, all of December 1, 2023; and

II - alteration of the submission format: XML (Extensible Markup Language).

Art. 2nd. Instruction Normative BCB No. 179, of October 25, 2021, shall come into force, starting from the January 2025 reporting date, with the following alteration:

“Art. 1st. .....................................................................................................................

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§ 3rd. The preparation of the documents referred to in this article must be done observing the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif) defined in Instruction Normatives BCB Nos. 426, 427, 428, 429, 430, 431, 432 and 433, all of December 1, 2023.” (NR)

Art. 3rd. The annex to Instruction Normative BCB No. 179, of October 25, 2021, shall come into force, starting from the January 2025 reporting date, with the following alterations:

“ANNEX TO INSTRUCTION NORMATIVE BCB NO. 179, OF OCTOBER 25, 2021

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Submission format: XML (Extensible Markup Language);

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Submission validation: advanced;

Submission validation scheme: XSD (XML Schema Definition);

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(NR)

Art. 4th. This Instruction Normative enters into force on January 1, 2025.

ANDRÉ MAURÍCIO TRINDADE DA
ROCHA

NOTE

The accounting documents 4413 - Combined Balance Sheet of the Cooperative System: cooperative commercial bank and multiple cooperative bank, 4423 - Combined Balance Sheet of the Cooperative System: credit confederations and 4433 - Combined Balance Sheet of the Cooperative System: central credit cooperatives, created based on CMN Resolution No. 4,151, of October 20, 2012, and Circular No. 3,669, of October 2, 2013, and regulated by Instruction Normative BCB No. 179, of October 25, 2021, are prepared by the cooperative commercial bank, the multiple cooperative bank, the credit confederations and the central credit cooperatives and must be sent to this Autarchy in accordance with the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif).

2. CMN Resolution No. 4,966, of November 25, 2021, and BCB Resolution No. 352, of November 23, 2023, concluded the process of harmonizing the accounting standards provided for in the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif) with the international pronouncement IFRS 9 – Financial Instruments issued by the International Accounting Standards Board (IASB). To allow the accounting bookkeeping in the Cosif chart of accounts to be aligned with the criteria and accounting procedures established in the regulation issued by the CMN and the BCB, it was necessary to alter the rubrics of said chart of accounts, which culminated in the issuance of Instruction Normatives BCB (INs) Nos. 426, 427, 428, 429, 430, 431, 432 and 433, all of 2023. With the issuance of these INs, there was a significant alteration of the Cosif, with the inclusion of one more level in its list of accounts, going from the current 5 levels to 6, which is being called Cosif version 1.5. As a direct consequence of this alteration, it is necessary to alter documents 4413, 4423 and 4433 so that they can reflect the new list of accounts.

3. Another direct consequence is the need to restructure the Cosif System, which receives and processes accounting documents.

4. Accounting documents 4413, 4423 and 4433 are still prepared by the entities cited in paragraph 1 in TXT (text) format, a format that is out of use. The maintenance of documents in TXT format represents an additional cost not only for the Central Bank but also for the Financial Institutions (IFs). This is because the vast majority of other documents prepared and sent to this Central Bank are in XML (eXtensible Markup Language) format, a format that is already within the domain of the IFs and represents a huge evolution compared to TXT, being an open, structured format and easy to read by both people and computers, in addition to allowing content validation, which makes the document test more effective and simple to perform.

5. Due to restrictions, especially regarding time and personnel, the necessary alteration of the TXT and XML modules of the Cosif System would probably compromise the January 2025 deadline, agreed upon for the entry into force of Cosif version 1.5. Therefore, to enable the reading of the new chart of accounts, it was decided to alter only the XML file reading module of the Cosif System.

6. Thus, starting from the January 2025 reporting date, taking advantage of the fact that institutions will already have to alter the generation of documents 4413, 4423 and 4433 to the new chart, it is understood that it would be opportune to alter these documents from the current TXT format to the XML format, similar to other Cosif documents that have already been sent in this format since 2014.

7. With this, all files of the Cosif system will be in the same format and the generation costs by those entities can be reduced, as well as the internal processing costs by the Central Bank.

8. Decree No. 10,411, of June 30, 2020, regulates the carrying out of regulatory impact analysis (RIA) as a prerequisite for the issuance of normative acts. However, in its Art. 4th, the Decree establishes the hypotheses for dispensing with the carrying out of RIA. This BCB IN falls under the hypotheses provided for in items 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; III - normative act considered of low impact; and VII - normative act that reduces requirements, obligations, restrictions, requests or specifications with the objective of reducing regulatory costs.

9. In view of the issuance of the normative acts cited in paragraph 2 and aiming to allow institutions to correctly ascertain and inform the Combined Balance Sheet of the Cooperative System: cooperative commercial bank and multiple cooperative bank, the Combined Balance Sheet of the Cooperative System: credit confederations and the Combined Balance Sheet of the Cooperative System: central credit cooperatives, there is no other alternative than to alter documents 4413, 4423 and 4433, thus justifying the classification under item II of Art. 4th of Decree No. 10,411, of 2020. In addition, since these documents are used by institutions to send the aforementioned Balance Sheets, it is understood that the alteration of these documents, both in format and content, is the simplest and lowest cost implementation method, both for the entities and for this Central Bank, which also justifies its classification under item III of Art. 4th of said Decree. Finally, the classification of the present normative act under item VII of said Decree is justified, since documents in the old and obsolete format will no longer be required, which will generate cost reduction, as already clarified.

10. Thus, based on the provisions of paragraphs 8 and 9, it is understood that the issuance of this Instruction Normative is exempt from the carrying out of RIA.

ANDRÉ MAURÍCIO TRINDADE DA
ROCHA
Head of the Department of
Financial System Monitoring (Desig)