Resolution BCB No. 200 — Establishes minimum requirements for Reference Equity (RE), Tier 1 and Core Capital and for the Core Capital Surcharge for Type 3 classified institutions

Resolution No. 200

RESOLUTION
BCB NO. 200, OF MARCH 11, 2022

Establishes the minimum requirements for Reference Equity (RE), Tier 1 and Core Capital and for the Core Capital Surcharge for a prudential conglomerate classified as Type 3.

Establishes the minimum requirements for Reference Equity – RE, Tier 1 and Core Capital and for the Core Capital Surcharge for an institution classified as Type 3. (Revised, effective 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

The Collegiate Board of the Central Bank of Brazil, in a session held on March 9, 2022, based on arts. 9, item II, 14 and 15 of Law No. 12.865, of October 9, 2013, and taking into account the provisions of art. 16 of Law No. 12.838, of July 9, 2013, and art. 14 of Resolution No. 4.282, of November 4, 2013,

R E S O L V E S:

CHAPTER I
OF THE OBJECT AND SCOPE OF APPLICATION

Art. 1º This Resolution establishes the minimum requirements for Reference Equity (RE), Tier 1 and Core Capital, as defined in Resolution BCB No. 199, of March 11, 2022, and for the Core Capital Surcharge (CCS), which must be calculated by a prudential conglomerate classified as Type 3, as established in Resolution BCB No. 197, of March 11, 2022.

Art. 1º This Resolution establishes the minimum requirements for Reference Equity – RE, Tier 1 and Core Capital, as defined in Resolution BCB No. 199, of March 11, 2022, and for the Core Capital Surcharge – CCS, which must be calculated by an institution classified as Type 3, as established in Resolution BCB No. 436, of November 28, 2024. (Revised, effective 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

§ 1º The provisions of this Resolution apply to the prudential conglomerate constituted in accordance with the Accounting Standard for Institutions Regulated by the Central Bank of Brazil (Cosif).

§ 2º The provisions of this Resolution do not apply to the conglomerate classified as Type 3 included in Segment 5 (S5), in accordance with Resolution BCB No. 197, of 2022.

§ 2º The provisions of this Resolution do not apply to the Type 3 institution included in Segment 5 – S5, in accordance with Resolution BCB No. 436, of November 28, 2024. (Revised, effective 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

§ 3º It is the responsibility of the lead institution to comply with the obligations assigned to the respective Type 3 conglomerate provided for in this Resolution.

§ 3º For a prudential conglomerate, it is the responsibility of the lead institution to comply with the obligations provided for in this Resolution. (Revised, effective 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

CHAPTER II
OF GENERAL PROVISIONS

Art. 2º The Type 3 conglomerate must permanently maintain amounts of RE, Tier 1 and Core Capital in values higher than the minimum requirements established in this Resolution.

Art. 2º The Type 3 institution must permanently maintain amounts of RE, Tier 1 and Core Capital in values higher than the minimum requirements established in this Resolution. (Revised, effective 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

CHAPTER III
OF THE CALCULATION OF THE RISK-WEIGHTED ASSETS VALUE

Art. 3º For the purposes of calculating the minimum requirements and the CCS mentioned, respectively, in arts. 4º to 7º, the amount of risk-weighted assets (RWA) must be calculated, which corresponds to the sum of the following components:

I - RWACPAD, relating to credit risk exposures subject to the capital requirement calculation using the standardized approach;

II - RWACIRB, relating to credit risk exposures subject to the capital requirement calculation using internal credit risk classification systems (IRB approaches) authorized by the Central Bank of Brazil;

III - RWAMPAD, relating to market risk exposures subject to the capital requirement calculation using the standardized approach;

IV - RWAMINT, relating to market risk exposures subject to the capital requirement calculation using an internal model authorized by the Central Bank of Brazil;

V - RWAOPAD, relating to the calculation of the capital required for operational risk using the standardized approach; and

VI - RWASP, relating to the calculation of the capital required for risks associated with payment services.

§ 1º The RWAMPAD component mentioned in item III of the caput consists of the sum of the following components:

I - RWAJUR1, relating to exposures subject to the variation of fixed interest rates denominated in real whose capital requirement is calculated using the standardized approach;

II - RWAJUR2, relating to exposures subject to the variation of the rate of coupons of foreign currencies whose capital requirement is calculated using the standardized approach;

III - RWAJUR3, relating to exposures subject to the variation of rates of coupons of price indices whose capital requirement is calculated using the standardized approach;

IV - RWAJUR4, relating to exposures subject to the variation of rates of coupons of interest rates whose capital requirement is calculated using the standardized approach;

V - RWAACS, relating to exposures subject to the variation of stock prices whose capital requirement is calculated using the standardized approach;

VI - RWACOM, relating to exposures subject to the variation of commodity prices whose capital requirement is calculated using the standardized approach;

VII - RWACAM, relating to exposures in gold, in foreign currency and in assets subject to exchange rate variation whose capital requirement is calculated using the standardized approach; and

VII - RWACAM, relating to exposures in gold, in foreign currency and in assets subject to exchange rate variation whose capital requirement is calculated using the standardized approach; (Revised, effective 7/1/2023, by Resolution BCB No. 290, of 2/8/2023.)

VIII - RWADRC, relating to credit risk exposures of financial instruments classified in the trading book.

VIII - RWADRC, relating to credit risk exposures of financial instruments classified in the trading book; and (Revised, effective 7/1/2023, by Resolution BCB No. 290, of 2/8/2023.)

IX - RWACVA, relating to exposures to the risk of variation in the value of derivative financial instruments due to the variation in the credit quality of the counterparty. (Included, effective 7/1/2023, by Resolution BCB No. 290, of 2/8/2023.)

§ 2º The procedures and parameters for calculating the components mentioned in the caput and the components mentioned in § 1º will be established by the Central Bank of Brazil.

§ 3º The establishment of a component relating to the risks referred to in the caput does not constitute permission to carry out activities related to that component, when prohibited by law, regulation or administrative act, or dependent on prior authorization from the Central Bank of Brazil. (Included, effective 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

CHAPTER IV
OF THE MINIMUM REQUIREMENTS FOR REFERENCE EQUITY, TIER 1 AND CORE CAPITAL

Art. 4º The minimum RE requirement corresponds to the application of the "F" factor, with a value of 8% (eight percent), to the RWA amount.

Art. 5º The minimum Tier 1 requirement corresponds to the application of 6% (six percent) to the RWA amount.

Art. 6º The minimum Core Capital requirement corresponds to the application of 4.5% (four and five-tenths percent) to the RWA amount.

CHAPTER V
OF THE CORE CAPITAL SURCHARGE

Art. 7º The CCS corresponds to the sum of the following components:

Art. 7º The Type 3 institution must allocate the CCS, which corresponds to the sum of the following components: (Revised, effective 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

I - CCSConservation, corresponding to the Core Capital Conservation Surcharge; and

II - CCSCountercyclical, corresponding to the Countercyclical Core Capital Surcharge, in accordance with specific regulation.

§ 1º The percentage to be applied to the RWA amount for the purpose of calculating the value of the CCSConservation component shall be equivalent to 2.5% (two and five-tenths percent).

§ 2º The maximum limit for the value of the CCSCountercyclical component is 2.5% (two and five-tenths percent) of the RWA amount.

§ 3º In the event of an increase in the percentage of the CCSCountercyclical component relative to the RWA amount, the new value of the component shall take effect after 12 (twelve) months.

Art. 8º Insufficiency in complying with the CCS, calculated in accordance with art. 7º, entails restrictions:

I - on the payment of variable remuneration to directors and members of the board of directors, in the case of joint-stock companies, and to administrators of limited liability companies;

II - on the payment of dividends and interest on equity;

III - on the repurchase of own shares or quotas in any amount; and

IV - on the reduction of share capital, when legally possible.

§ 1º The restrictions referred to in the caput must be imposed while the insufficiency of CCS persists.

§ 2º The variable remuneration referred to in item I of the caput includes bonuses, profit sharing and any deferred remuneration components and other incentive payments associated with performance.

§ 3º If the excess value of Core Capital relative to the minimum requirement set out in art. 6º is used to meet the minimum requirements set out in arts. 4º or 5º, such value cannot be considered for verifying the sufficiency of the CCS.

§ 4º The restrictions referred to in items I and II of the caput correspond to the following percentages of the amount to be paid or distributed:

I - 100% (one hundred percent), in the case where the value considered for verifying the sufficiency of the CCS is less than 25% (twenty-five percent) of that set out in terms of art. 7º;

II - 80% (eighty percent), in the case where the value considered for verifying the sufficiency of the CCS is greater than or equal to 25% (twenty-five percent) and less than 50% (fifty percent) of that set out in terms of art. 7º;

III - 60% (sixty percent), in the case where the value considered for verifying the sufficiency of the CCS is greater than or equal to 50% (fifty percent) and less than 75% (seventy-five percent) of that set out in terms of art. 7º; and

IV - 40% (forty percent), in the case where the value considered for verifying the sufficiency of the CCS is greater than or equal to 75% (seventy-five percent) and less than 100% (one hundred percent) of that set out in terms of art. 7º.

§ 5º The percentages referred to in § 4º apply to each item mentioned in items I to III of the caput.

§ 6º The amounts retained due to insufficiency of CCS cannot be subject to future obligations.

§ 7º The restrictions mentioned in the caput apply to insufficiencies observed when calculating the values to be distributed, including those potentially advanced.

§ 8º The Central Bank of Brazil may fix a maximum individualized interval during which insufficiency in complying with the CCS is admissible.

§ 9º Upon verification of insufficiency in complying with the CCS, the capital plan must be amended, in order to include the actions necessary to correct the insufficiency until the end of the period established in terms of § 8º.

CHAPTER VI
OF THE DEDUCTION OF THE EXCESS OF FIXED ASSETS AND THE SEPARATION OF CAPITAL

Art. 9º For the purposes of verifying compliance with the minimum requirements referred to in arts. 4º, 5º and 6º, as well as the Core Capital Surcharge referred to in art. 7º, the excess of resources applied in Fixed Assets relative to the percentages established in specific regulation must be deducted from RE, Tier 1 and Core Capital.

Art. 10. The institution that opts for the separation of RE in accordance with specific regulation must deduct the separated value from RE, Tier 1 and Core Capital for the purposes of verifying compliance with the minimum requirements referred to respectively in arts. 4º, 5º and 6º and the Core Capital Surcharge referred to in art. 7º of this Resolution.

Art. 10. The institution that opts for the separation of RE for application exclusively in credit operations with public sector bodies and entities, in accordance with specific regulation, must deduct the separated value from RE, Tier 1 and Core Capital for the purposes of verifying compliance with the minimum requirements referred to respectively in arts. 4º, 5º and 6º and the CCS referred to in art. 7º of this Resolution. (Revised, effective 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

CHAPTER VII
OF FINAL PROVISIONS

Section I
Transitional Provisions

Art. 11. For a conglomerate classified as Type 3 on the date of publication of this Resolution, the “F” factor, mentioned in art. 4º, may be phased in, according to the following schedule:

I - 6.75% (six and seventy-five hundredths percent), from January 1, 2023 to December 31, 2023;

I - 6.75% (six and seventy-five hundredths percent), from July 1, 2023 to December 31, 2023; (Revised, effective 12/1/2022, by Resolution BCB No. 258, of 11/18/2022.)

II - 7.5% (seven and five-tenths percent), from January 1, 2024 to December 31, 2024; and

III - 8% (eight percent), from January 1, 2025.

Art. 11. (Revoked, effective 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

Art. 12. For a conglomerate classified as Type 3 on the date of publication of this Resolution, the minimum Tier 1 requirement, mentioned in art. 5º, may be phased in, according to the following schedule:

I - 5.5% (five and five-tenths percent), from January 1, 2023 to December 31, 2023; and

I - 5.5% (five and five-tenths percent), from July 1, 2023 to December 31, 2023; and (Revised, effective 12/1/2022, by Resolution BCB No. 258, of 11/18/2022.)

II - 6% (six percent), from January 1, 2024.

Art. 12. (Revoked, effective 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

Art. 13. For a conglomerate classified as Type 3 on the date of publication of this Resolution, the percentage to be applied to the RWA amount for the purpose of calculating the value of the CCSConservation component shall be equivalent to:

I - 0% (zero percent), in the period from January 1, 2023 to December 31, 2023;

I - 0% (zero percent), in the period from July 1, 2023 to December 31, 2023; (Revised, effective 12/1/2022, by Resolution BCB No. 258, of 11/18/2022.)

II - 1.25% (one and twenty-five hundredths percent), in the period from January 1, 2024 to December 31, 2024; and

III - 2.5% (two and five-tenths percent), from January 2025.

Art. 13. (Revoked, effective 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

Section II
Complementary Provisions

Art. 14. The Type 3 conglomerate must also maintain sufficient RE to cover the risk of variation in interest rates for instruments classified in the banking book (IRRBB).

Art. 14. The Type 3 institution must also maintain sufficient RE to cover the risk of variation in interest rates for instruments classified in the banking book – IRRBB. (Revised, effective 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

Art. 15. The Central Bank of Brazil will establish the requirements and procedures relating to authorization for the use of certain standardized approaches for the calculation of the RWAOPAD component by the prudential conglomerate classified as Type 3.

Art. 15. (Revoked, effective 1/1/2025, by Resolution BCB No. 447, of 12/19/2024.)

Art. 16. This Resolution enters into force on January 1, 2023.

Art. 16. This Resolution enters into force on July 1, 2023. (Revised, effective 12/1/2022, by Resolution BCB No. 258, of 11/18/2022.)

Otávio
Ribeiro Damaso
Director of Regulation