Normative Instruction BCB No. 479 — Details the Composition of the Business Indicator (BI)

INSTRUÇÃO NORMATIVA Nº 479, DE 12 de junho de 2024

Details the composition of the Business Indicator (BI)

The Head of the Prudential and Exchange Regulation Department (Dereg), using the powers conferred by art. 23, item I, letter “a”; and art. 119, item I, letter “a” of the Internal Regulations of the Central Bank of Brazil, annexed to Resolution BCB No. 340, of September 21, 2023, and considering the provisions of Resolution BCB No. 356, of November 28, 2023,

RESOLVES:

Art. 1º This Normative Instruction details the calculation method of the Business Indicator (BI), as provided for in Resolution BCB No. 356, of November 28, 2023.

Art. 2º The interest, leasing, and participations component (ILDC), as provided for in art. 6º of Resolution BCB No. 356, of November 28, 2023, must include:

I - interest and leasing revenue (II), which corresponds to the sum of the values relating to:

a) revenues from credit operations and other operations with characteristics of credit granting;

b) revenues from leasing operations, including profits from the alienation of leased assets;

c) revenues from interfinancial liquidity applications, including committed operations;

d) revenues from securities and financial instruments, except those referred to in item IV;

e) revenues from credits linked to operations acquired through assignment;

f) revenues from interfinancial transfers;

g) inflows from intercooperative deposits;

h) revenues from investment fund quotas held by a central credit cooperative resulting from a cooperative act known as financial centralization, as provided for in letter “c” of item XII of art. 3º of CMN Resolution No. 5.051, of November 25, 2022; and

i) other interest and leasing revenues.

II - interest and leasing expense (IE), which corresponds to the sum of the values relating to:

a) funding expenses;

b) expenses for obligations from loans and transfers;

c) leasing expenses, including depreciation and impairment losses on leased assets;

d) losses from the alienation of leased assets;

e) expenses for obligations from operations linked to assignment;

f) expenses for obligations from financial and development funds; and

g) expenditures on intercooperative deposits.

III - interest-generating assets (IEA), which correspond to the sum of the balances recorded in the balance sheet of the following elements:

a) gross value of credit operations and other operations with characteristics of credit granting, including credits linked to operations acquired through assignment;

b) securities and financial instruments, including federal public bonds and Financial Rural Product Certificates (CPR);

c) leasing operations;

d) interfinancial liquidity applications, including committed operations;

e) credits from honored guarantees and sureties;

f) resources transferred to a central credit cooperative, resulting from a cooperative act known as financial centralization, as provided for in letter “c” of item XII of art. 3º of CMN Resolution No. 5.051, of 2022;

g) investment fund quotas held by a central credit cooperative, resulting from a cooperative act known as financial centralization, as provided for in letter “c” of item XII of art. 3º of CMN Resolution No. 5.051, of 2022; and

h) other financial assets whose interest revenues are considered in interest and leasing revenue (II).

IV - participation revenues (DI), which correspond to the sum of:

a) dividends and interest on equity capital from investments in shares;

b) revenues from investment fund quotas, except those referred to in letter “h” of item I; and

c) revenues from unconsolidated corporate participations, in the country or abroad.

Sole Paragraph. Institutions subject to the RWASP calculation that issue electronic money (MOE), as provided for in art. 3º, item I, of Resolution BCB No. 80, of March 25, 2021, must not consider, for the purpose of calculating interest and leasing revenue (II) and interest-generating assets (IEA), the revenues and balances, respectively, of federal public bonds or committed operations intended to comply with the provisions of item II of § 1º of art. 22 of the aforementioned Resolution.

Sole Paragraph. Institutions subject to the RWASP calculation that issue electronic money (MOE), as provided for in art. 3º, item I, of Resolution BCB No. 80, of March 25, 2021, must not consider, for the purpose of calculating interest and leasing revenue (II) and interest-generating assets (IEA), the revenues and balances, respectively, of federal public bonds, committed operations, and cash amounts allocated to the Corresponding Account for Electronic Money (CCME) intended to comply with the provisions of § 1º of art. 22 of the aforementioned Resolution. (Redaction given by Normative Instruction BCB No. 638, of 13/6/2025.)

Art. 3º The services component (SC), as provided for in art. 7º of Resolution BCB No. 356, of November 28, 2023, must include:

I - services revenue (FI), which corresponds to the sum of the values relating to:

a) revenues received from the issuance and placement of securities and financial instruments;

b) fees for services provided to natural persons and legal entities;

c) fees for clearing and settlement services;

d) fees for asset, fund, program, consortium, and other management services;

e) fees received for custody services;

f) fees received for payment services;

g) fees for structuring financial operations;

h) fees for receivables management;

i) revenues from provided guarantees;

j) revenues, including fees, from foreign exchange operations;

k) revenues from brokerage operations on exchanges; and

l) other fees, taxes, and remunerations for services provided by the institution.

II - services expense (FE), which corresponds to the sum of the values relating to:

a) expenses for clearing and settlement services;

b) expenses for custody services;

c) expenses for receivables management;

d) expenses for payment services;

e. expenses for services provided by entities of the financial system;

f) expenses related to financial services provided by third parties;

g) commissions paid to banking and exchange correspondents;

h) expenses for structuring operations;

i) expenses for foreign exchange operations; and

j) other expenses incurred for financial services provided to the institution.

III - other operating revenues (OOI), which correspond to the sum of all revenues or incomes from institution activities that are not classified in the other components of the BI, including:

a) revenues from advance obligations of payment transactions;

b) revenues from credit rights arising from legal actions;

c) revenues from specific credits; and

d) other operating revenues.

IV - other operating expenses (OOE), which correspond to expenses incurred in the performance of institution activities that are not classified in the other components of the BI and to losses incurred due to operational risk events, including:

a) fines;

b) expenses for unconsolidated corporate participations, in the country or abroad;

c) expenses related to operational risk events, including their provisions;

d) expenses incurred to recover damages caused by operational risk events;

e. expenses for advance receipt of values related to payment transactions;

f) expenses resulting from pecuniary agreements of any nature; and

g) other operating expenses.

§ 1º Expenses incurred to recover damages caused by operational risk events, as provided for in letter “d” of item IV, correspond to the reduction in the book value of assets as a result of the operational risk event and to the expense for replacing or repairing the assets.

§ 2º Revenues and expenses related to the insurance and reinsurance sales intermediary service must be included in the SC calculation.

§ 3º Revenue generated by the reversal of provisions, as provided for in letter “c” of item IV, constituted in the last three annual periods must be included in the OOE.

§ 4º Revenue generated by the reversal of provisions, as provided for in letter “c” of item IV, constituted at a time prior to the last three annual periods must not be included in the OOI or the OOE.

§ 5º Reimbursements received by central credit cooperatives and credit confederations regarding the provision of centralized administrative services to affiliated cooperatives must not be included in the FI or the OOI.

§ 6º The administrative services referred to in § 5º are limited to those mentioned in items I to IX of art. 7º.

Art. 4º The net result of the trading portfolio (NTB), as provided for in item IV of art. 8º of Resolution BCB No. 356, of November 28, 2023, must consider the classification criteria for instruments as provided for in Resolution BCB No. 111, of July 6, 2021, and include:

I - profits or losses due to the adjustment to market value of instruments classified in the trading portfolio;

II - profits or losses resulting from the definitive sale or transfer of control of instruments classified in the trading portfolio;

III - profits or losses related to financial derivative instruments identified as accounting hedges of instruments classified in the trading portfolio; and

IV - profits or losses resulting from exchange rate variation on instruments classified in the trading portfolio.

Art. 5º The net result of the banking portfolio (NBB), as provided for in item V of art. 8º of Resolution BCB No. 356, of November 28, 2023, must consider the classification criteria for instruments as provided for in Resolution BCB No. 111, of 2021, and include:

I - profits or losses recognized in the period result and due to the adjustment to market value of instruments classified in the banking portfolio;

II - profits or losses resulting from the definitive sale or transfer of control of instruments classified in the banking portfolio;

III - profits or losses related to financial derivative instruments identified as accounting hedges of instruments classified in the banking portfolio; and

IV - profits or losses resulting from exchange rate variation on instruments classified in the banking portfolio.

Art. 6º Revenues and expenses related to payment services, as provided for in § 1º of art. 9º, of Resolution BCB No. 356, of November 28, 2023, correspond to:

I - payment services revenue, which corresponds to the sum of the values relating to:

a) revenue from accreditation;

b) revenue from connectivity fees;

c) revenues from rental of payment transaction equipment

d) revenues from payment transaction initiation;

e. revenues from payment arrangement fees;

f) revenue from instant payment (PIX);

g. revenue from interchange fees; and

h) revenues from federal public bonds or committed operations maintained by electronic money issuing institutions corresponding to payment account balances, exclusively when intended to comply with the provisions of art. 22 of Resolution BCB No. 80, of March 25, 2021.

II - payment services expense, which corresponds to the sum of the values relating to:

a) expenses for connectivity fees;

b) expenses for rental of payment transaction equipment;

c. expenses for the provision of payment transaction initiation services;

d) expenses for instant payment (PIX);

e. payment for processing payment transactions; and

f) expenses for compulsory services due to the payment arrangement issuer.

Art. 7º Administrative expenses, as provided for in art. 9º, item I, of Resolution BCB No. 356, of November 28, 2023, correspond to the sum of the values relating to:

I) expenses for water, energy, gas, and other services provided by public service concession companies;

II) rental expenses;

III) communication and data processing expenses;

IV) maintenance and conservation expenses for assets;

V) consumption and low-value material expenses, or with useful life of less than one year;

VI) remuneration, charges, and personnel benefit expenses;

VII) non-financial services provided by third parties to the institution;

VIII) expenses for hiring specialized technical services; and

IX) travel and transportation expenses.

Art. 8º The following are revoked:

I - Circular Letter No. 3.625, of December 27, 2013; and

II - Normative Instruction No. 390, of June 6, 2023.

Art. 9º This Normative Instruction enters into force on January 1, 2025.

Ricardo
Franco Moura

INFORMATION NOTE

Justifies the issuance of a normative instruction that details the calculation method of the Business Indicator (BI).

This Note justifies the issuance of a normative instruction by the Prudential and Exchange Regulation Department (Dereg) that details the calculation method of the Business Indicator (BI), as provided for in Resolution BCB No. 356, of November 28, 2023.

2.
The new procedures for calculating the risk-weighted assets (RWA) portion related to the calculation of capital required for operational risk using the standardized approach (RWAOPAD) were established by Resolution BCB No. 356, of November 28, 2023, which will revoke, from January 1, 2025, Circular No. 3.640, of March 4, 2013, the regulation that until then established the calculation procedures for the RWAOPAD portion.

3.
In consideration of the publication of the aforementioned Resolution BCB, it is necessary to issue additional instructions that detail the calculation method of this new methodology. This information is essential for the adequate implementation of the procedures for calculating the RWAOPAD portion. Additionally, Normative Instruction BCB No. 390, of June 6, 2023, which details the composition of the Operational Risk Exposure Indicator (IE), used by the currently valid methodologies, will be revoked.

4.
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 resolve to issue the attached normative instruction.

5.
It is worth noting that, as provided for in item II of art. 4º of Decree No. 10.411, of June 30, 2020, the requirement for regulatory impact analysis (RIA) does not apply to normative acts intended to regulate rights or obligations defined in a hierarchically superior norm that does not allow, technically or legally, different regulatory alternatives. Thus, considering this provision, the normative instruction presented here is exempt from the preparation of an RIA.

Ricardo
Franco Moura

Head of the Prudential and Exchange Regulation Department