RegAlert2024-12-06 | Instrução Normativa BCB 560Added
Normative Instruction BCB No. 560 of December 6, 2024: Clarifies Criteria for Applying CMN Resolution No. 4,966 and BCB Resolution No. 352
This instruction clarifies specific accounting criteria for financial institutions applying CMN Resolution No. 4,966 and BCB Resolution No. 352, explicitly allowing adjustments for exchange rate and fair value variations on non-performing credit assets and mandating the full write-off of financial assets rather than partial write-offs. It requires institutions using the comprehensive expected loss methodology to individually estimate the probability of credit recovery problems and recovery expectations, while those using the simplified methodology must apply the effective interest rate. The regulation extends these accounting concepts to leasing operations, defines the classification of financial liabilities arising from asset transfers, and repeals Normative Instruction BCB No. 464, with provisions taking effect on publication for the repeal and January 1, 2025, for all other articles.
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Resolution No. 222
NORMATIVE INSTRUCTION BCB NO. 560, OF DECEMBER 6, 2024
Clarifies criteria to be observed in the application of CMN Resolution No. 4,966, of November 25, 2021, and BCB Resolution No. 352, of November 23, 2023.
The Head of the Financial System Regulation Department (Denor), using the authority granted by Article 23, item I, letter "a", of the Internal Regulations of the Central Bank of Brazil, annexed to BCB Resolution No. 340, of September 21, 2023, and based on Article 67, item III, letter "c", of CMN Resolution No. 4,966, of November 25, 2021,
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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
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