Normative Instruction BCB No. 52 — Amends Circular Letters No. 3,850 and 3,853 of December 19, 2017, regarding accounting items for Simplified Reference Equity (PRS5) and Risk-Weighted Assets (RWAS5)

This instruction amends the accounting accounts used to calculate Simplified Reference Equity (PRS5) and the risk-weighted asset portion for credit risk (RWAS5). It updates the definitions for social capital, intangible assets, non-controlling interests, and tax credits within Circular Letter No. 3,850, and modifies account classifications for instantaneous payment accounts and cooperative financial centralization resources within Circular Letter No. 3,853. The changes apply to financial institutions subject to these prudential regulations and take effect upon publication.

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Circular Letter Credit

NORMATIVE INSTRUCTION BCB NO. 52, OF DECEMBER 1, 2020

Amends the wording of Circular Letters No. 3,850 and 3,853, both of December 19, 2017, which detail accounting items to be used in the calculation of Simplified Reference Equity (PRS5) and in the calculation of the portion of risk-weighted assets in the simplified form (RWAS5) with respect to credit risk, respectively.

The Head of the Department of Prudential and Exchange Regulation (Dereg), in the exercise of 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. 108,150, of August 27, 2020, and having in view the provisions of Art. 11, sole paragraph, of Resolution No. 4,606, of October 19, 2017, and Circular Letter No. 3,862, of December 7, 2017,

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This document amends: Circular Letter No. 3850 — Details Accounting Items for Calculating the Simplified Reference Equity (PRS5), Circular Letter No. 3853 — Details Accounting Items for Calculating the Risk-Weighted Assets Component (RWAS5) for Credit Risk Exposures under the Simplified Standardized Approach

Source: Banco Central do Brasil — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works