Instruction Normative BCB No. 763 — Amends Instruction Normative BCB No. 584 of January 28, 2025

The Head of the Department of Prudential and Exchange Regulation – Dereg, in the exercise of the powers conferred by Art. 23, caput, item I, letter “a”; and Art. 119, caput, item I, letter “g”, of the Internal Regulations of the Central Bank of Brazil, attached to Resolution BCB No. 340 of September 21, 2023, and considering the provisions of Arts. 8 and 11 of Resolution No. 4,606 of October 19, 2017, Arts. 7 and 9 of Resolution BCB No. 201 of March 11, 2022, and Circular No. 3,863 of December 7, 2017,

RESOLVES:

Art. 1. Lines 4, 6, and 8 of Annex V of Instruction Normative BCB No. 584 of January 28, 2025, published in the Official Gazette of the Union on January 30, 2025, shall enter into force with the following amendments:

No.	Provision of Circular No. 3,863 of 2017	Value – V and Accounting Items
4	Art. 4, § 1, item V.	Net Financial Result – NFR:; V = (i) + (ii) + (iii) + (iv) + (v) + (vi) + (vii) + (viii) + (ix) + (x), where:; (i) 7.1.5.75.00.00-9: PROFITS FROM FIXED INCOME SECURITIES;; (ii) 8.1.5.20.00.00-8: (-) LOSSES FROM FIXED INCOME SECURITIES;; (iii) 7.1.9.15.00.00-3: PROFITS FROM SALES OR TRANSFERS OF FINANCIAL ASSETS;; (iv) 8.1.9.15.00.00-2: (-) LOSSES FROM SALES OR TRANSFERS OF FINANCIAL ASSETS;; (v) 7.1.9.16.00.00-6: PROFIT ON THE PURCHASE OR SALE OF FOREIGN CURRENCY;; (vi) 8.1.9.16.00.00-5: (-) LOSS ON THE PURCHASE OR SALE OF FOREIGN CURRENCY;; (vii) 7.1.9.91.00.00-3: REVENUES FROM EXCHANGE RATE VARIATION ADJUSTMENTS;; (viii) 8.1.9.91.00.00-2: (-) EXPENSES FROM EXCHANGE RATE VARIATION ADJUSTMENTS;; (ix) 7.1.9.93.00.00-9: REVENUES FROM FAIR VALUE ADJUSTMENTS; and; (x) 8.1.9.93.00.00-8: (-) EXPENSES FROM FAIR VALUE ADJUSTMENTS.
6	Art. 4, § 2, item IV.	Service Expenses – SE:; V = abs[(i) + (ii) + (iii) + (iv) + (v)], where:; (i) 8.1.5.50.01.00-4: (-) Foreign Exchange Contract - Purchase of Foreign Currency;; (ii) 8.1.5.50.02.00-3: (-) Foreign Exchange Contract - Sale of Foreign Currency;; (iii) 8.1.5.50.06.00-9: (-) Gold Purchase Contracts;; (iv) 8.1.5.50.07.00-8: (-) Gold Sale Contracts; and; (v) 8.1.7.54.00.00-1: (-) EXPENSES FOR FINANCIAL SYSTEM SERVICES.
8	Art. 4, § 2, item VI.	Other Operational Expenses – OOE:; V = abs[(i) + (ii) + (iii) + (iv) + (v) + (vi) + (vii) + (viii) + (ix) + (x)], where:; (i) 8.1.6.00.00.00-7: (-) Investment Expenses;; (ii) 8.1.9.18.00.00-1: (-) EXPENSES FOR ADVANCED RECEIPT OF VALUES RELATED TO PAYMENT TRANSACTIONS;; (iii) 8.1.9.19.00.00-4: (-) EXPENSES FOR SERVICES ASSOCIATED WITH PAYMENT TRANSACTIONS;; (iv) 8.1.9.65.00.00-7: (-) EXPENSES FOR PROAGRO RESOURCES;; (v) 8.1.9.77.00.00-2: (-) EXPENSES FOR SPECIFIC RIGHTS OF SUBSIDIARIES NOT SUBJECT TO CENTRAL BANK AUTHORIZATION;; (vi) 8.1.9.78.00.00-5: (-) EXPENSES FOR SPECIFIC OBLIGATIONS OF SUBSIDIARIES NOT SUBJECT TO CENTRAL BANK AUTHORIZATION;; (vii) 8.1.9.95.00.00-4: (-) EXPENSES FOR NON-CREDIT RISK RELATED PASSIVE PROVISIONS;; (viii) 8.1.9.96.00.00-7: (-) TRANSACTION COSTS;; (ix) 8.1.9.98.00.00-3: (-) EXPENSES FOR FRAUDS; and; (x) 8.1.9.99.00.00-6: (-) OTHER OPERATIONAL EXPENSES.

Art. 2. This Instruction Normative enters into force on the date of its publication.

RICARDO FRANCO MOURA

INFORMATION NOTE

Amends Instruction Normative BCB No. 584 of 2025, which details the accounting items to be used in the calculation of the minimum requirements for Simplified Reference Equity (PRS5) and Payment Institution Reference Equity (PRIP); and the amounts of risk-weighted assets in simplified form (RWAS5) and risk-weighted assets for payment institutions (RWAIP).

The Instruction Normative hereby issued promotes adjustments in Annex V of Instruction Normative BCB No. 584 of January 28, 2025, applicable to institutions in Segment 5 (S5), to incorporate changes made to the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif) into the calculation of capital required for operational risk via the simplified standardized approach (RWAROSimp).

2. Resolution CMN No. 4,966 of November 25, 2021, and Resolution BCB No. 352 of November 23, 2023, promoted significant changes to Cosif to allow for adequate accounting bookkeeping of financial instruments, in convergence with IFRS 9 – Financial Instruments pronouncement. The operationalization of the simplified prudential approach (RWAS5), applicable to institutions opting for S5, requires the detailing of the accounting items to be used in the calculation of the components that make up RWAS5. Thus, any updates made to Cosif also require updating Instruction Normative No. 584 of 2025.

3. Annex V deals with the calculation of the capital requirement to cover operational risk via the simplified approach, as provided in Circular No. 3,863 of December 7, 2017.

4. The proposed amendments are as follows:

i) in line 4, corresponding to the Net Financial Result (NFR) component: inclusion of accounts 7.1.9.16.00.00-6: PROFIT ON THE PURCHASE OR SALE OF FOREIGN CURRENCY; and 8.1.9.16.00.00-5: (-) LOSS ON THE PURCHASE OR SALE OF FOREIGN CURRENCY;

ii) in line 6, corresponding to the Service Expenses (SE) component: exclusion of account 8.1.7.63.00.00-7: (-) EXPENSES FOR SPECIALIZED TECHNICAL SERVICES; and

iii) in line 8, corresponding to Other Operational Expenses (OOE): inclusion of account 8.1.9.96.00.00-7: (-) TRANSACTION COSTS.

5. In this regard, considering the provision of item II of Art. 4 of Decree No. 10,411 of June 30, 2020, which allows for the waiver of conducting a regulatory impact analysis (RIA) in the case of a normative act intended to regulate rights or obligations defined in a hierarchically superior norm that does not allow, technically or legally, different regulatory alternatives, I decide to waive the regulatory impact analysis referred to in Art. 5 of Law No. 13,874 of September 20, 2019. After all, the proposed norm only indicates the Cosif accounting items that correspond to the elements described in Circular No. 3,863 of 2017, with no regulatory choice being envisioned.

6. In this context, based on the provision of Art. 23, item I, letter “a”, of the Internal Regulations of this Central Bank, I resolve to issue the instruction normative in the form of the attached draft.

Ricardo Franco Moura

Head of the Department of Prudential and Exchange Regulation