Normative Instruction BCB No. 388 — Amends the text of Circular Letters Nos. 3,850, 3,851, 3,852, 3,853 and 3,854, all dated December 19, 2017

Resolution No. 222

NORMATIVE INSTRUCTION BCB NO. 388, OF JUNE 6, 2023

Amends the text of Circular Letters Nos. 3,850, 3,851, 3,852, 3,853 and 3,854, all dated December 19, 2017.

The Head of the Department of Prudential and Exchange Regulation (Dereg), acting in a substitute capacity, using the powers conferred upon them by Art. 23, item I, letter “a”; and Art. 118, item I, letter “a” of the Internal Regulations of the Central Bank of Brazil, annexed to Ordinance No. 108,150, of August 27, 2020, and considering Resolution No. 4,606, of October 19, 2017, BCB Resolutions Nos. 198 and 201, both dated March 11, 2022, and Circular Letters Nos. 3,861, 3,862 and 3,863, dated December 7, 2017,

RESOLVES:

Art. 1º The summary of Circular Letter No. 3,850, of December 19, 2017, shall be effective with the following wording:

“Details accounting items to be used in the calculation of the Simplified Reference Equity (PRS5) and the Payment Institution Reference Equity (PRIP)” (NR)

Art. 2º The preamble of Circular Letter No. 3,850, of 2017, shall be effective with the following wording:

“The Head of the Department of Prudential and Exchange Regulation (Dereg), acting in a substitute capacity, using the powers conferred upon him by Art. 23, item I, letter “a”; and Art. 118, item I, letter “a” of the Internal Regulations of the Central Bank of Brazil, annexed to Ordinance No. 95,818, of December 4, 2017, and considering the provisions of Art. 8º of Resolution No. 4,606, of October 19, 2017, Art. 3º of BCB Resolution No. 198, and Art. 7º of BCB Resolution No. 201, both dated March 11, 2022, RESOLVES:” (NR)

Art. 3º Circular Letter No. 3,850, of 2017, shall be effective with the following wording:

“Art. 1º The calculation of the Simplified Reference Equity (PRS5), referred to in Art. 8º of Resolution No. 4,606, of December 19, 2017, and Art. 7º of BCB Resolution No. 201, of March 11, 2022, and of the Payment Institution Reference Equity (PRIP), referred to in Art. 3º of BCB Resolution No. 198, of March 11, 2022, must be carried out, in accordance with the Accounting Plan of Institutions of the Financial System (Cosif), with the following components:

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

V - credit income accounts, which correspond to the sum of the values of accounts 7.1.0.00.00-8 OPERATING REVENUE; 7.3.0.00.00-6 NON-OPERATING REVENUE and 7.8.0.00.00-1 ALLOCATION OF INTERNAL RESULTS;

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

X - debit result accounts, which correspond to the sum of the values of accounts 8.1.0.00.00-5 (-) OPERATING EXPENSES, 8.3.0.00.00-3 (-) NON-OPERATING EXPENSES and 8.8.0.00.00-8 (-) ALLOCATION OF INTERNAL RESULTS;

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

XII - ...................................................................................................................

a) 2.5.1.00.00-2 Intangible Assets;

b) 1.9.8.70.40-3 Intangibles, net of the value of account 1.9.8.97.40-0 - (-) Intangibles, limited to zero; and

c) 1.9.8.80.40-0 Intangibles, net of the value of account 1.9.8.98.40-9 - (-) Intangibles, limited to zero;

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

XIV - .................................................................................................................

a) 2.1.1.20.15-8 - Non-Financial Institutions - Equity Method Value, net of the value of account 2.1.1.99.30-9 - Non-Financial Institutions;

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

h) 1.3.1.30.20-4 Participation in Companies Controlled by a Central Credit Cooperative; and

i) 1.3.1.30.90-5 Other Participations.

XV - added value of investments in Principal Capital, Supplementary Capital and Level II instruments, as defined in CMN Resolution No. 4,955, of October 21, 2021, and BCB Resolution No. 199, of March 11, 2022, of an institution that does not comprise the conglomerate, which corresponds to the sum of the values of accounts:

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

XVII - deferred tax assets arising from temporary differences that depend on the generation of future taxable profits or revenues for their realization, which correspond to the sum of the following components:

a) the value of account 3.0.9.84.21-3 Deferred Tax Assets of Temporary Difference - Passive Provisions - Fiscal and Pension Contingencies;

b) .....................................................................................................................

1. from the sum of accounts 3.0.9.84.29-9 Deferred Tax Assets of Temporary Difference - Passive Provisions - Others, 3.0.9.84.30-9 Deferred Tax Assets of Temporary Difference - Mark-to-Market, 3.0.9.84.40-2 Deferred Tax Assets of Temporary Difference - Others;

2. for an institution that did not join the Credit Stimulation Program - PEC, established by Provisional Measure No. 1,057, of July 6, 2021, the deduction of the minimum between the value of account 1.8.8.25.30-1 Deferred Tax Assets - MP 992 and the sum of accounts 3.0.9.50.15-1 CGPE - Company with Gross Revenue up to R$100 Million, 3.0.9.50.25-4 CGPE - Company with Gross Revenue between R$100 Million and R$300 Million and 3.0.9.50.35-7 CGPE - Eligible Programs; and

3. for an institution that joined the PEC, the deduction of the minimum between the value of account 1.8.8.25.50-7 Deferred Tax Assets and the sum of accounts 3.0.9.50.45-0 PEC - Operations Contracted until May 25, 2022, 3.0.9.50.47-4 PEC - Operations Contracted from May 25, 2022 - Companies with Annual Gross Revenue up to R$4.8 Million, and 3.0.9.50.49-8 PEC - Operations Contracted from May 25, 2022 - Companies with Annual Gross Revenue Superior to R$4.8 Million; and

XVIII - deferred tax assets arising from fiscal losses and negative base of Social Contribution on Net Profit and those originated from this contribution relating to assessment periods closed until December 31, 1998, calculated in accordance with Art. 8º of Provisional Measure No. 2,158-35, of August 24, 2001, which correspond to the sum of the values of accounts:

a) 3.0.9.84.60-8 Deferred Tax Assets of Accumulated Fiscal Loss - Income Tax;

b) 3.0.9.84.70-1 Deferred Tax Assets of Negative Base - CSLL;

c) 3.0.9.84.80-4 Deferred Tax Assets of CSLL Booked at 18% (MP No. 2,158/2001);

d) 3.0.9.84.90-7 Deferred Tax Assets of Accumulated Fiscal Loss - Others; and

e) 3.0.9.84.50-5 Deferred Tax Assets of Fiscal Loss - Supervenience of Depreciation.” (NR)

Art. 4º Circular Letter No. 3,851, of December 19, 2017, shall be effective with the following wording:

“Art. 1º In the calculation of the limit on the application of resources in Permanent Assets, referred to in Art. 14 of Resolution No. 4,606, of October 19, 2017, the PRS5 calculated in accordance with Art. 8º of said Resolution must be considered.

Art. 2º For the purposes of calculating the limit referred to in Art. 1º, the value of resources applied in Permanent Assets, which corresponds to the sum of the values of accounts 2.1.0.00.00-3 INVESTMENTS; II - 2.2.0.00.00-2 USE FIXED ASSETS; III - 2.3.0.00.00-1 LEASE FIXED ASSETS; and IV - 2.5.0.00.00-9 INTANGIBLE, must be deducted from the values relating to:

................................................................................................................” (NR)

Art. 5º The summary of Circular Letter No. 3,852, of December 19, 2017, shall be effective with the following wording:

“Details accounting items to be used in the calculation of the risk-weighted asset portion in simplified form regarding exposure to gold, foreign currency and assets subject to exchange rate variation through the simplified standardized approach (RWACAMSimp).” (NR)

Art. 6º The preamble of Circular Letter No. 3,852, of 2017, shall be effective with the following wording:

“The Head of the Department of Prudential and Exchange Regulation (Dereg), acting in a substitute capacity, using the powers conferred upon him by Arts. 23, item I, letter “a”; and 118, item I, letter “a” of the Internal Regulations of the Central Bank of Brazil, annexed to Ordinance No. 95,818, of December 4, 2017, and considering the provisions of the sole paragraph of Art. 11 of Resolution No. 4,606, of October 19, 2017, Art. 6º of BCB Resolution No. 198, and Art. 9º of BCB Resolution No. 201, both dated March 11, 2022, RESOLVES:” (NR)

Art. 7º The summary of Circular Letter No. 3,853, of December 19, 2017, shall be effective with the following wording:

“Details accounting items to be used in the calculation of the risk-weighted asset portion in simplified form regarding exposures to credit risk subject to the calculation of the minimum capital requirement through the simplified standardized approach (RWARCSimp).” (NR)

Art. 8º The preamble of Circular Letter No. 3,853, of 2017, shall be effective with the following wording:

“The Head of the Department of Prudential and Exchange Regulation (Dereg), acting in a substitute capacity, using the powers conferred upon him by Arts. 23, item I, letter “a”; and 118, item I, letter “a” of the Internal Regulations of the Central Bank of Brazil, annexed to Ordinance No. 95,818, of December 4, 2017, and considering the provisions of the sole paragraph of Art. 11 of Resolution No. 4,606, of October 19, 2017, Art. 6º of BCB Resolution No. 198, and Art. 9º of BCB Resolution No. 201, both dated March 11, 2022, RESOLVES:” (NR)

Art. 9º Circular Letter No. 3,853, of 2017, shall be effective with the following wording:

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

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

IV - ...................................................................................................................

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

bf) 1.3.4.45.00-9 CENTRAL BANK - TITLES LINKED TO SAVINGS FUNDS; and

bg) 1.3.6.99.99.6 (-) Others;

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

XX - ..................................................................................................................

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

b) 1.3.1.15.25-0 Referenced Fund Shares; and

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

XXIV - operations for which there is no specific Risk Weighting Factor (RWF) established, which correspond to the sum of the values of other Current Asset and Long-Term Realizable Asset and Permanent Asset accounts listed in Cosif relating to operations consistent with the simplified risk profile requirements referred to in Arts. 4º and 5º of Resolution No. 4,606, of October 19, 2017, and Arts. 4º and 5º of BCB Resolution No. 201, of March 11, 2022, or consistent with typical operations of Type 2 prudential conglomerate and non-integrated payment institution of prudential conglomerate, and not deducted from the Simplified Reference Equity (PRS5) or Payment Institution Reference Equity (PRIP), mentioned in Circular Letter No. 3,850, of December 19, 2017;

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

XXVII - credit operations carried out within the scope of the Emergency Program for Employment Support, referred to in Law No. 14,043, of August 19, 2020, which correspond to the values recorded in account 3.0.9.83.40-3 - Emergency Program for Employment Support (Pese), net of the values of account 3.0.9.83.49-6 - Provision for losses - Pese;

XXVIII - credit operations carried out within the scope of the National Program for Support to Microenterprises and Small Businesses (Pronampe), referred to in Law No. 13,999, of 2020, and amended by Law No. 14,161, of 2021, contracted from January 1, 2021, which correspond to the values recorded in account 3.0.9.83.50-6 - National Program for Support to Microenterprises and Small Businesses (Pronampe II), net of the values of account 3.0.9.83.59-9 - Provision for losses - Pronampe II;

XXIX - payment transaction operations, which correspond to the sum of the values of accounts:

a) for Type 1 prudential conglomerate, in accordance with BCB Resolution No. 197, of March 11, 2022, 1.4.1.50.10-4 Values to Be Received Not Linked to Cessions;

b) for Type 1 prudential conglomerate, in accordance with BCB Resolution No. 197, of 2022, 1.4.1.50.20-7 Ceded Values to Be Received; and

c) 1.4.1.50.30-0 Acquired Values to Be Received;

XXX - operations acquired in cession of payment transactions, which correspond to the sum of the values of accounts:

a) 1.8.8.75.35-1 From Payment Transactions; and

b) 1.8.8.75.37-5 Of Values to Be Received relating to Payment Transactions; and

XXXI - values to be received relating to payment transactions, which correspond to the sum of the values of accounts:

a) for Type 1 and Type 3 prudential conglomerates, in accordance with BCB Resolution No. 197, of 2022, 1.8.8.79.10-6 Values to Be Received Not Linked to Cessions, net of the values of account 1.8.9.96.10-6 (-) Provisions on Values to Be Received Not Linked to Cessions;

b) for Type 1 and Type 3 prudential conglomerates, in accordance with BCB Resolution No. 197, of 2022, 1.8.8.79.20-9 Ceded Values to Be Received, net of the values of account 1.8.9.96.20-9 (-) Provisions on Ceded Values to Be Received; and

c) 1.8.8.79.30-2 Acquired Values to Be Received, net of the values of account 1.8.9.96.30-2 (-) Provisions on Acquired Values to Be Received.” (NR)

Art. 10. The preamble of Circular Letter No. 3,854, of December 19, 2017, shall be effective with the following wording:

“The Head of the Department of Prudential and Exchange Regulation (Dereg), acting in a substitute capacity, using the powers conferred upon him by Arts. 23, item I, letter “a”; and 118, item I, letter “a” of the Internal Regulations of the Central Bank of Brazil, annexed to Ordinance No. 95,818, of December 4, 2017, and considering the provisions of the sole paragraph of Art. 11 of Resolution No. 4,606, of October 19, 2017, and Art. 9º of BCB Resolution No. 201, of March 11, 2022, RESOLVES:” (NR)

Art. 11. Art. 2º of Circular Letter No. 3,854, of 2017, shall be effective with the following wording:

“Art. 2º ............................................................................................................

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

IV - ...................................................................................................................

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

b) 8.1.8.40.10-0 - (-) PASSIVE PROVISION EXPENSES;

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

§ 1º Institutions subject to the calculation of RWASP, as provided in Art. 11 of Resolution No. 4,606, of October 19, 2017, and Art. 9º of BCB Resolution No. 201, of March 11, 2022, must deduct from the amounts registered in account 7.1.7.00.00-9 - Service Provision Revenues, referred to in letter “b” of item I of the caput, the values registered in the accounts:

I - 7.1.7.05.20-0 Accreditation;

II - 7.1.7.05.40-6 Initiation of Payment Transaction;

III - 7.1.7.05.50-9 PIX;

IV - 7.1.7.05.60-2 Sale or Lease of Equipment and Connectivity; and

V - 7.1.7.05.99-4 Other Services Related to Payment Transactions.

§ 2º The values registered in account 7.1.7.05.10-7 Interchange Fee must not be deducted from the BISimp calculation.” (NR)

Art. 12. The following are revoked:

I - letters “c” and “f” of item XI of Art. 1º of Circular Letter No. 3,850, of 2017;

II - letters “b”, “d”, “f” and “g” of item XIV of Art. 1º of Circular Letter No. 3,850, of 2017;

III - item XIX of Art. 1º of Circular Letter No. 3,850, of 2017;

IV - items I and II of Art. 2º of Circular Letter No. 3,851, of 2017;

V - item I of Art. 1º of Circular Letter No. 3,852, of 2017;

VI - item III of Art. 1º of Circular Letter No. 3,853, of 2017;

VII - letters “a”, “b”, “c”, “d”, “e”, “f”, “g”, “h”, “m”, “n”, “o”, “p”, “t”, “ab”, “ac”, “ad”, “ai”, “ao”, and “ap” of item IV of Art. 1º of Circular Letter No. 3,853, of 2017;

VIII - letters “e”, “f”, “g”, “h”, “n”, “o”, “p”, “q”, “x”, “y”, “z”, “aa” and “ad” of item IX of Art. 1º of Circular Letter No. 3,853, of 2017;

IX - letters “a”, “b”, “c”, “d”, “e”, “f”, “g”, “h” and “i” of item XIII of Art. 1º of Circular Letter No. 3,853, of 2017;

X - letter “c” of item XVI of Art. 1º of Circular Letter No. 3,853, of 2017;

XI - letters “a”, “e”, “f” and “g” of item XXI of Art. 1º of Circular Letter No. 3,853, of 2017; and

XII - letter “l” of item I and “d” and “e” of item IV of Art. 1º of Circular Letter No. 3,854, of 2017.

Art. 13. This Normative Instruction enters into force on July 1, 2023.

Kathleen Krause

EXPLANATORY NOTE

This Note supports the issuance of a normative instruction by the Department of Prudential and Exchange Regulation (Dereg), which amends Circular Letters Nos. 3,850, 3,851, 3,852, 3,853 and 3,854, all dated December 19, 2017, due to changes in norms issued by the Central Bank of Brazil (BCB) and the Monetary National Council (CMN), which deal with: (i) updating the prudential framework applicable to payment activities and (ii) regulatory consolidation of the Accounting Standard of Institutions Regulated by the Central Bank of Brazil – Cosif.

A. Updating the prudential framework applicable to payment activities

2. With the approval of CMN Resolution No. 5,049, of November 25, 2022, which amended Resolution No. 4,606, of October 19, 2017, and BCB Resolutions Nos. 198 and 201, both dated March 11, 2022, the RWASP portion was created, relating to exposures associated with payment services. The RWASP portion will be applicable to all institutions classified in Segment 5 (S5) that provide payment services and to the Type 2 conglomerate, as well as to the payment institution not integrated into a prudential conglomerate.

3. Thus, it is necessary to amend the preambles of the aforementioned Circular Letters to include the appropriate legal basis for new institutions subject to the calculation of the Simplified Reference Equity (PRS5), the Payment Institution Reference Equity (PRIP) and the RWACAMSimp, RWARCSimp and RWAROSimp portions, as determined by BCB Resolutions Nos. 198 and 201, both of 2022.

4. Additionally, for institutions of Type 2 and Type 3 conglomerates classified in S5 that provide payment services and payment institutions not integrated into a prudential conglomerate, some accounting items are not considered for the purposes of calculating the credit risk portions through the simplified standardized approach (RWARCSimp) and operational risk through the simplified standardized approach (RWAROSimp), since their capital requirement is made through the portion of risks associated with payment services (RWASP).

5. For institutions of Type 1 conglomerates classified in S5, payment activities continue to be computed in the RWARCSimp and RWAROSimp portions until the end of the current year. To comply with the entry into force of the RWASP portion for Type 1 conglomerates from January 2024, both the circulars and the circular letters that govern the method of calculating the RWARCSimp and RWAROSimp portions will be subject to adjustments in the second half of 2023.

B. Regulatory consolidation of the Accounting Standard of Institutions Regulated by the Central Bank of Brazil – Cosif

6. The calculation of the risk-weighted asset portions of institutions opting for the Simplified Regime is performed exclusively based on accounting information using the amounts registered in the Cosif accounts discriminated in the circular letters dealing with the calculation methodology of the different portions of RWA.

7. The changes introduced in Cosif within the scope of the regulatory consolidation carried out through BCB Normative Instructions Nos. 268, 269, 270, 271, 273 and 275, all dated April 1, 2022, and BCB Normative Instruction No. 315, of October 27, 2022, brought significant changes to the organization of the accounting items of its various groups, revising the codes and nomenclatures of subgroups, breakdowns of subgroups, titles and subtitles of accounting items, as well as the functions and attributes of the titles and subtitles of accounting items and the Estban code of the accounting titles.

8. Thus, the current norm updates the cited Circular Letters with the new nomenclatures of the accounting items, in addition to excluding accounts that were not maintained after said consolidation.

C. Final Provisions

9. In this context, based on the provisions of Art. 23, item I, letter “a”; and Art. 118, item I, letter “a” of the Internal Regulations of the Central Bank of Brazil, annexed to Ordinance No. 108,150, of August 27, 2020, I issue the normative instruction attached.

10. I note that the provisions of the normative instruction relating to the reformulation of the prudential framework of payment institutions will enter into force concomitantly with the norms that compose this reformulation (July 1, 2023).

11. It is worth noting that, as provided in items II and IV of Art. 4º of Decree No. 10,411, of June 30, 2020, the obligation to analyze regulatory impact (AIR) does not apply to normative acts intended to discipline rights or obligations defined in a hierarchically superior norm that does not allow, technically or legally, different regulatory alternatives, as well as to normative acts that aim at the update or revocation of norms considered obsolete, without alteration of merit. Thus, considering these provisions, the normative instruction presented here is exempt from the preparation of AIR.

Kathleen Krause
Head of the Department of Prudential and Exchange Regulation, substitute