Normative Instruction BCB No. 577 — Amends Normative Instructions BCB Nos. 428 and 433 to Create Accounting Lines in the Cosif Chart of Accounts

Alterations of Cosif

NORMATIVE INSTRUCTION BCB NO. 577, OF DECEMBER 26, 2024

Amends Normative Instructions BCB Nos. 428 and 433, both of December 1, 2023, to create accounting lines in the list of accounts of the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif).

The Head of the Financial System Regulation Department (Denor), using the attribution conferred by art. 23, item I, letter "a", of the Internal Regulations of the Central Bank of Brazil, annexed to Resolution BCB No. 340, of September 21, 2023, based on arts. 12 of CMN Resolution No. 4,858, of October 23, 2020, and 10 of BCB Resolution No. 92, of May 6, 2021,

RESOLVES:

Art. 1. The following accounting line is included in Annex I of Normative Instruction BCB No. 428, of December 1, 2023, published in the Official Gazette of the Union on December 14, 2023, observing the order of the "Account Code" column:

Account Code	Account Name	Estban	Function
3.0.9.90.00.00-1	NEGATIVE ADJUSTMENTS OF EXPECTED LOSS - CONTROL	-	Record, at absolute value, the negative adjustment recognized in equity, net of tax effects, resulting from the application, on January 1, 2025, of the criteria for establishing provisions for expected losses provided for in CMN Resolution No. 4,966, of 2021 and BCB Resolution No. 352, of 2023, in counterpart to account 9.0.9.90.00.00-5 NEGATIVE ADJUSTMENTS OF EXPECTED LOSS.

Art. 2. The following accounting line is included in Annex I of Normative Instruction BCB No. 433, of December 1, 2023, published in the Official Gazette of the Union on December 14, 2023, observing the order of the "Account Code" column:

Account Code	Account Name	Estban	Function
9.0.9.90.00.00-5	NEGATIVE ADJUSTMENTS OF EXPECTED LOSS	-	Record, at absolute value, the negative adjustment recognized in equity, net of tax effects, resulting from the application, on January 1, 2025, of the criteria for establishing provisions for expected losses provided for in CMN Resolution No. 4,966, of 2021 and BCB Resolution No. 352, of 2023, in counterpart to account 3.0.9.90.00.00-1 NEGATIVE ADJUSTMENTS OF EXPECTED LOSS - CONTROL.

Art. 3. This Normative Instruction enters into force on January 1, 2025.

RENATO KIYOTAKA UEMA

NOTE 899/2024 – BCB/DENOR, OF DECEMBER 26, 2024

Justifies the proposal for the issuance of a normative instruction that alters accounting lines of the Active Compensation and Passive Compensation groups in the list of accounts of the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif).

Sir
Head of Denor,

This Note justifies the proposal for the issuance of a normative instruction that includes accounting lines in the list of accounts of the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif), according to the competence of the Financial System Regulation Department (Denor), using the attribution conferred in art. 23, item I, letter "a", of the Internal Regulations of the Central Bank of Brazil (BCB), annexed to Resolution BCB No. 340, of September 21, 2023, based on arts. 12 of CMN Resolution No. 4,858, of October 23, 2020, and 10 of BCB Resolution No. 92, of May 6, 2021.

2. The need to create such accounts arises from the issuance by the National Monetary Council (CMN) and the BCB, respectively, of CMN Resolution No. 5,199 and BCB Resolution No. 448, both of December 23, 2024, establishing a schedule for the incorporation of impacts into regulatory capital of the migration to the provisioning model provided for in CMN Resolution No. 4,966, of November 25, 2021. Thus, the negative adjustment of the initial adoption of the rules recognized, on January 1, 2025, in the institution's equity will be added to regulatory capital metrics gradually until 2028.

3. In order to allow the monitoring of the application of the above rule by financial institutions and other institutions authorized to operate by this Central Bank, it is necessary to create a compensation account for recording the negative adjustment recognized in equity resulting from the application, on January 1, 2025, of the criteria for establishing provisions for expected losses provided for in CMN Resolution No. 4,966, of November 25, 2021, and BCB Resolution No. 352, of November 23, 2023.

4. Finally, in compliance with the provisions of art. 5 of Law No. 13,874, of September 20, 2019, Decree No. 10,411, of June 30, 2020, determines that proposals for normative acts of general interest of economic agents formulated by bodies and entities of the direct, autarchic, and foundation federal public administration, as well as by collegiate bodies through the body or entity responsible for providing it with administrative support, must be preceded by a Regulatory Impact Analysis (RIA).

5. However, as provided in art. 4, item II, of this Decree, the obligation to prepare an RIA may be waived for a normative act that aims to regulate rights or obligations defined in a hierarchically superior norm that does not allow, technically or legally, different regulatory alternatives. Thus, in view of this provision, the normative instruction now proposed is exempt from the preparation of an RIA.

For your consideration,

MARIA
CAMILA BAIGORRI

Deputy Head, substitute

Agreed.

RENATO
KIYOTAKA UEMA

Head of Department, substitute