RESOLUTION BCB NO. 352, OF NOVEMBER 23, 2023

Dispenses with the concepts and accounting criteria applicable to financial instruments, as well as for the designation and recognition of hedging relationships (hedge accounting) by securities brokerage firms, securities distribution companies, foreign exchange brokerage firms, consortium administrators, and payment institutions authorized to operate by the Central Bank of Brazil, and regarding accounting procedures for defining cash flows of financial assets as solely payments of principal and interest, the application of the methodology for calculating the effective interest rate of financial instruments, the establishment of provisions for losses associated with credit risk, and the disclosure of information regarding financial instruments in explanatory notes to be observed by financial institutions and other institutions authorized to operate by the Central Bank of Brazil.

Dispenses with the concepts and accounting criteria applicable to financial instruments, as well as for the designation and recognition of hedging relationships (hedge accounting) by institutions required to use the Accounting Standard of Institutions Regulated by the Central Bank of Brazil – COSIF, by virtue of Resolution BCB No. 92, of May 6, 2021, and regarding accounting procedures for defining cash flows of financial assets as solely payments of principal and interest, the application of the methodology for calculating the effective interest rate of financial instruments, the establishment of provisions for losses associated with credit risk, and the disclosure of information regarding financial instruments in explanatory notes to be observed by financial institutions and other institutions authorized to operate by the Central Bank of Brazil. (Amended by Resolution BCB No. 553, of 3/3/2026.)

The Collegiate Board of the Central Bank of Brazil, in a session held on November 23, 2023, based on arts. 9 of Law No. 4.595, of December 31, 1964, 9-A of Law No. 4.728, of July 14, 1965, 6 and 7, item III, of Law No. 11.795, of October 8, 2008, 9, item II, and 15 of Law No. 12.865, of October 9, 2013, and having in view the provisions of art. 61 of Law No. 11.941, of May 27, 2009,

R E S O L V E S:

TITLE I

ON THE OBJECT AND SCOPE OF APPLICATION

Art. 1. This Resolution establishes:

I - the concepts and accounting criteria to be observed by securities brokerage firms, securities distribution companies, foreign exchange brokerage firms, consortium administrators, and payment institutions authorized to operate by the Central Bank of Brazil:

I - the concepts and accounting criteria to be observed by institutions required to use the Accounting Standard of Institutions Regulated by the Central Bank of Brazil – COSIF, as per art. 1, caput, item I, of Resolution BCB No. 92, of May 6, 2021: (Amended by Resolution BCB No. 553, of 3/3/2026.)

a) in the classification, measurement, recognition, and derecognition of financial instruments;

b) in the establishment of provisions for expected losses associated with the credit risk of the following financial instruments:

1. financial assets;

2. financial guarantees issued;

3. credit commitments and loans to be disbursed;

c) in the designation and accounting recognition of hedging relationships (hedge accounting); and

d) in the disclosure of information regarding financial instruments; and

II - the procedures to be observed by financial institutions and other institutions authorized to operate by the Central Bank of Brazil for:

a) defining future cash flows of a financial asset as solely payments of principal and interest on the principal amount;

b) applying the methodology for calculating the effective interest rate of financial instruments;

c) establishing provisions for losses associated with credit risk;

d) requesting authorization to use the complete methodology for calculating provisions for expected losses associated with credit risk; and

e) disclosing information regarding financial instruments in explanatory notes to the financial statements.

§ 1. The provisions of this Resolution do not apply to the accounting records of consortium groups by consortium administrators authorized to operate by the Central Bank of Brazil, except regarding the measurement of financial applications, which must be measured at fair value, calculated in accordance with current regulations.

§ 2. The provisions of this Resolution do not apply to the following instruments, for which the criteria provided in specific regulations must be observed:

I - investments in affiliates, controlled entities, and jointly controlled entities that, in accordance with current regulations, must be evaluated using the equity method, except for investments held for sale as provided in art. 24;

II - employee benefits;

III - share-based payments; and

IV - liabilities arising from the institution's contracts with clients.

§ 3. The accounting criteria and criteria for disclosure of information mentioned in items "a" and "d" of item I of the caput do not apply to the following instruments, which must observe specific regulations:

I - amounts receivable arising from lease contracts; and

II - assets arising from the institution's contracts with clients, as defined in current regulations.

§ 4. The accounting criteria mentioned in item "b" of item I of the caput do not apply to the following financial instruments:

I - equity instruments of another entity;

II - financial assets classified in the fair value category measured at level 1 of the fair value hierarchy, in accordance with current regulations, except private securities, credit operations, and other operations with characteristics of credit granting;

III - derivative financial instruments; and

IV - credit commitments and loans to be disbursed that cumulatively meet the following characteristics:

a) the commitment is unconditionally and unilaterally cancellable by the institution;

b) the institution has the capacity to cancel, block, or suspend the contract or the disbursement of resources, or does not execute the cancellation, block, or suspension in the normal daily management of the financial instrument; and

b) the institution has the capacity to cancel, block, or suspend the contract or the disbursement of resources and executes the cancellation, block, or suspension in the normal daily management of the financial instrument; and (Amended, effective 1/7/2025, by Resolution BCB No. 483, of 11/6/2025.)

c) the institution has the capacity to monitor the financial instrument or the financial situation of the counterparty individually, so that it can immediately cancel, block, or suspend the commitment or the disbursement of resources, in the event of a reduction in the counterparty's financial capacity.

TITLE II
ON THE CONCEPTS AND ACCOUNTING CRITERIA APPLICABLE TO FINANCIAL INSTRUMENTS, AS WELL AS FOR THE DESIGNATION AND RECOGNITION OF HEDGING RELATIONSHIPS (HEDGE ACCOUNTING) BY SECURITIES BROKERAGE FIRMS, SECURITIES DISTRIBUTION COMPANIES, FOREIGN EXCHANGE BROKERAGE FIRMS, CONSORTIUM ADMINISTRATORS, AND PAYMENT INSTITUTIONS

TITLE II

ON THE CONCEPTS AND ACCOUNTING CRITERIA APPLICABLE TO FINANCIAL INSTRUMENTS, AS WELL AS FOR THE DESIGNATION AND RECOGNITION OF HEDGING RELATIONSHIPS (HEDGE ACCOUNTING) BY INSTITUTIONS REQUIRED TO USE COSIF BY VIRTUE OF RESOLUTION BCB NO. 92, OF MAY 6, 2021

(Title amended by Resolution BCB No. 553, of 3/3/2026.)

CHAPTER I

ON DEFINITIONS

Art. 2. For the purposes of accounting regulation of financial instruments, it is considered:

I - financial asset:

a) cash;

b) equity instrument of another entity;

c) contractual right to:

1. receive cash or another financial asset from another entity; or

2. exchange financial assets or financial liabilities with another entity under conditions that are potentially favorable to the institution holding this right; or

d) contract to be or that may be settled with the entity's own equity instrument that is:

1. a non-derivative financial instrument for which the entity is or may be obligated to receive a variable number of its own equity instruments; or

2. a derivative financial instrument that will not be settled by exchanging a fixed amount of cash, or another financial asset, for a fixed number of the entity's own equity instruments;

II - credit commitment: commitment to grant credit under pre-established terms and conditions;

III - firm commitment: purchase or sale contract closed, for the exchange of a determined quantity of resources, at a determined price, on a specific date or on future determined dates;

IV - hedge accounting: the representation, in the financial statements, of the use of financial instruments to manage exposures resulting from specific risks that may affect the result or other comprehensive income of the institution;

V - counterparty: the borrower, the beneficiary of a guarantee, or the issuer of a security acquired;

VI - hybrid contract: contract that has a non-derivative main component and at least one embedded derivative;

VII - loan to be disbursed: commitment to disburse credit already contracted;

VIII - amortized cost of financial asset: value at which the financial asset was initially recognized, in accordance with arts. 12 and 13, plus the value of revenues generated and minus the value of expenses incurred, amounts received, and the balance of the provision for expected losses associated with credit risk;

IX - amortized cost of financial liability: value at which the financial liability was initially recognized, in accordance with arts. 12 and 13, plus the value of charges incurred and minus the value of revenues eventually generated and amounts paid;

X - transaction costs: costs that, cumulatively, are:

a) directly attributable to the acquisition, origination, or issuance of the specific financial instrument; and

b) incremental, thus considered costs that the institution would not incur if it had not acquired, originated, or issued the financial instrument;

XI - derivative: financial instrument:

a) whose value varies due to changes in a certain interest rate, price of another financial instrument, price of a commodity, exchange rate, stock exchange index, price index, index, or credit rating, or any other similar variable, provided that, in the case of a non-financial variable, this variable is not specific to one of the parties to the contract;

b) that requires no initial net investment or the initial net investment is small in relation to the value of the contract; and

c) whose settlement will occur on a future date;

XII - embedded derivative: component of a hybrid contract whose effect is to determine that part of the cash flows of the combined instrument varies in a manner similar to an individual derivative financial instrument;

XIII - financial guarantee issued: operation that requires the guarantor to make contractually defined payments, in order to reimburse the holder of a debt instrument, or another instrument of a similar nature, for a loss resulting from the debtor's failure to fulfill the obligation on the due date, such as provision of aval, suretyship, co-obligation, or any other operation that represents a guarantee of the fulfillment of a third party's financial obligation;

XIV - financial instrument: title or contract that gives rise to a financial asset for one party and a financial liability or equity instrument for the other party;

XV - equity instrument: title or contract that evidences residual interest in the assets of an entity or of an investment fund after the deduction of all its liabilities;

XVI - interest: consideration for the time value of money, for the credit risk associated with the outstanding principal balance during a specific period of time, and for other basic risks and costs of the instrument, as well as for the profit margin;

XVII - effective interest method: application of the effective interest rate to the gross carrying amount of the instrument;

XVIII - financial liability:

a) obligation to:

1. deliver cash or another financial asset to another entity; or

2. exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavorable to the institution itself; or

b) contract to be or that may be settled with the entity's own equity instrument that is:

1. a non-derivative financial instrument for which the entity is or may be obligated to deliver a variable number of its own equity instruments; or

2. a derivative financial instrument that will not be settled by exchanging a fixed amount of cash, or another financial asset, for a fixed number of the entity's own equity instruments;

XIX - principal: value of the financial instrument on the date of its acquisition, origination, or issuance, calculated as provided in art. 12;

XX - renegotiation: agreement implying alteration of the originally agreed conditions of the instrument or the substitution of the original financial instrument by another, with partial or total settlement or refinancing of the respective original obligation;

XXI - restructuring: renegotiation implying significant concessions to the counterparty, due to relevant deterioration of its credit quality, which would not be granted if such deterioration had not occurred;

XXII - effective interest rate: rate that equalizes the present value of all receipts and payments over the contractual term of the financial asset or liability to its gross carrying amount;

XXIII - forecasted transaction: future transaction planned that is not the subject of a firm commitment;

XXIV - transfer of control: act that makes the buyer or assignee of the financial asset the holder, in practice, of the right to sell or transfer the financial asset in its entirety, autonomously and without imposition of additional restrictions resulting from the original sale or transfer operation;

XXV - gross carrying amount of financial instrument: amortized cost of the financial instrument before adjustment for provision for expected losses associated with credit risk, if applicable; and

XXVI - operation with characteristics of credit granting: debt instrument with a distinct legal form from a credit operation that:

a) has as its purpose the granting of credit or the novation of a credit operation; or

b) is originated in a process equivalent or similar to that applicable to typical credit operations of the institution, in a relationship between this and its client.

Sole paragraph. For the purposes of evaluating expected losses associated with credit risk and calculating the provision for expected losses associated with credit risk as provided in Chapter III of this Title, the definition of counterparty provided in item V of the caput includes natural and legal persons who share the credit risk with the institution, including through a control relationship, as defined in specific accounting regulations.

Art. 3. The asset is characterized as a financial asset with credit recovery problems (problematic asset) when the following occurs:

Art. 3. The financial instrument is characterized as a financial asset with credit recovery problems (problematic asset) when the following occurs: (Amended, effective 1/8/2024, by Resolution BCB No. 397, of 3/7/2024.)

I - delay exceeding 90 (ninety) days in the payment of principal or charges; or

II - indication that the respective obligation will not be fully honored under the agreed conditions, without the need to resort to guarantees or collateral.

§ 1. The institutions mentioned in item I of the caput of art. 1 must consider a period shorter than that established in item I of the caput in the face of evidence that, within this period, there is a significant reduction in the counterparty's financial capacity to honor its obligations under the agreed conditions.

§ 2. The indication referred to in item II of the caput includes:

I - finding that the counterparty no longer has the financial capacity to honor the obligation under the agreed conditions;

II - restructuring of the financial asset associated with the obligation;

III - declared bankruptcy, judicial or extrajudicial recovery, or similar acts requested regarding the counterparty;

IV - judicial measure that limits, delays, or prevents the fulfillment of obligations under the agreed conditions;

V - significant decrease in the liquidity of the financial asset associated with the obligation, due to the reduction in the counterparty's financial capacity to honor its obligations under the agreed conditions;

VI - breach of relevant contractual clauses by the counterparty; or

VII - negotiation of financial instruments issued by the counterparty at a significant discount that reflects losses incurred associated with credit risk.

§ 3. Non-characterization as a problematic credit recovery asset is admitted for credits issued or originated after the approval of the judicial recovery process, or homologation of extrajudicial recovery, in accordance with current legislation, provided that it is documented that, in addition to the provisions of item III of § 2, there is no other indication that the respective obligation will not be fully honored under the agreed conditions, without the need to resort to guarantees or collateral.

§ 4. The asset can only cease to be characterized as a financial asset with credit recovery problems in the case of:

I - non-existence of overdue installments, including charges;

II - maintenance of timely payment of principal and charges for a sufficient period to demonstrate that there has been a significant improvement in the counterparty's financial capacity to honor its obligations;

III - fulfillment of other contractual obligations for a sufficient period to demonstrate that there has been a significant improvement in the counterparty's financial capacity to honor its obligations; and

IV - evidence that the obligation will be fully honored under the originally agreed or modified conditions, in the case of renegotiation, without the need to resort to guarantees or collateral.

§ 5. The institutions mentioned in item I of the caput of art. 1 must establish consistent and verifiable criteria, duly documented, for decharacterizing the instrument as an asset with credit recovery problems.

§ 6. Exceptionally, the observance of the requirement provided in item II of § 4 is dispensed with for financial instruments that, due to their nature and payment structure, have a provision for periodic payments with intervals equal to or greater than three months, provided it is proven that the evidence referred to in item IV of § 4 was observed during, at minimum, the ninety days prior to the date of decharacterizing the asset as having credit recovery problems. (Included, effective 1/10/2025, by Resolution BCB No. 504, of 23/9/2025.)

CHAPTER II

ON CLASSIFICATION, MEASUREMENT, RECOGNITION, AND DERECOGNITION

SECTION I

ON CLASSIFICATION AND RECLASSIFICATION

Subsection I

On Classification of Financial Assets

Art. 4. The institutions mentioned in item I of the caput of art. 1 must classify financial assets based on their business model for managing financial assets and on the contractual characteristics of the cash flows of these assets in the following categories:

I - in the amortized cost category, financial assets that cumulatively meet the following conditions:

a) the asset is managed within a business model whose objective is to hold financial assets with the aim of receiving their contractual cash flows; and

b) the future contractual cash flows consist solely of payments of principal and interest on the principal amount, on specified dates;

II - in the fair value through other comprehensive income category, financial assets that cumulatively meet the following conditions:

a) the financial asset is managed within a business model whose objective is to generate returns both by receiving contractual cash flows and by selling the financial asset with substantial transfer of risks and benefits; and

b) the future contractual cash flows consist solely of payments of principal and interest on the principal amount, on specified dates; and

III - in the fair value through profit or loss category, the remaining financial assets.

§ 1. Credit operations and other operations with characteristics of credit granting must be classified in the amortized cost category, except for the following, which must be classified in the fair value through profit or loss category:

I - operations managed within a business model whose objective is to generate returns solely by selling the financial asset;

II - operations whose future contractual cash flows do not consist exclusively of payments of principal and interest on the principal amount, on specified dates; and

III - operations for which the institution exercises the option provided in art. 7.

§ 2. The classification in the amortized cost category, as provided in § 1, also applies to financial assets acquired or originated for total or partial settlement with the objective of restructuring or renegotiation of credit operations or other operations with characteristics of credit granting.

b) the risks that may affect the performance of the business model and how these risks are managed; and

c) the remuneration basis for business managers;

III - be defined considering the management of asset groups for cash flow generation; and

IV - reflect the planned and effectively practiced activities to achieve their objective.

Art. 6. The institutions mentioned in item I of the caput of Art. 1 may, upon initial recognition, irrevocably designate equity instruments of another entity to be classified in the fair value through other comprehensive income category.

§ 1. The institutions mentioned in item I of the caput of Art. 1 must clearly document the policy and strategy justifying the designation provided in the caput.

§ 2. The designation referred to in the caput is prohibited for an asset whose main objective is to generate return through the sale of the instrument.

Art. 7. The institutions mentioned in item I of the caput of Art. 1 may, upon initial recognition, irrevocably opt to classify financial assets that would be classified in other categories into the fair value through profit or loss category, provided that this classification aims to eliminate or significantly reduce an accounting measurement or recognition inconsistency that may occur due to measurement on different bases of assets or liabilities whose joint evaluation is part of an existing strategy upon initial recognition, or from the recognition of gains and losses on these assets.

Subsection
IIDa
Reclassification of Financial Assets

Art. 8. In the event of changes in business models, financial assets must be reclassified prospectively on the first day of the subsequent accounting result reporting period.

§ 1. On the reclassification date, the following adjustments must be made:

I - in the transfer of the financial asset from the amortized cost category to other categories, the difference between the amortized cost of the instrument and the fair value on the transfer date must be recognized as:

a) revenue or expense, in the period's result, if transferred to the fair value through profit or loss category; or

b) a separate component in equity, net of tax effects, if transferred to the fair value through other comprehensive income category;

II - in the transfer of the financial asset from the fair value through other comprehensive income category, the unrealized gains and losses recognized as a separate component in equity must be:

a) recognized in the period's result, in the case of transfer to the fair value through profit or loss category; or

b) eliminated from equity, in offset to the asset's value, so that the asset is measured as if it had been classified in this category since initial recognition, in the case of transfer to the amortized cost category; and

III - in the transfer of the financial asset from the fair value through profit or loss category to other categories, the fair value of the instrument on the reclassification date must constitute the new gross carrying amount, from which yields and charges, including the provision for expected credit losses associated with credit risk, will be calculated, and the reversal of amounts already computed in the result arising from unrealized gains or losses is not permitted.

§ 2. Financial assets acquired or originated from the date of the change in business models must be classified according to the new models.

Subsection
IIIDa
Classification of Financial Liabilities

Art. 9. Financial liabilities must be classified in the amortized cost category, except:

I - derivatives that are liabilities, which must be classified in the fair value through profit or loss category;

II - financial liabilities generated in operations involving the borrowing or leasing of financial assets, which must be classified in the fair value through profit or loss category;

III - financial liabilities generated by the transfer of a financial asset, which must be measured and recognized in accordance with Section III of this Chapter;

IV - credit commitments and loans to be disbursed, which must be recognized and measured in accordance with the provisions of Chapter III of this Title; and

V - financial guarantees issued, which, after initial recognition, must be measured by the higher value between:

a) the provision for expected credit losses associated with credit risk, in accordance with the provisions of Chapter III of this Title; and

b) the fair value at initial recognition less the accumulated value of revenue recognized in accordance with specific regulations.

Art. 10. The reclassification of financial liabilities is prohibited.

Subsection
IVDa
Classification of Hybrid Contracts

Art. 11. Hybrid contracts must be classified:

I - jointly, in accordance with the provisions of Art. 4, as if they constituted a single financial instrument, if the main component is a financial asset; and

II - separately, if the main component is a financial liability or non-financial instrument, observing that:

a) the non-financial component must be recognized, measured, and disclosed in accordance with specific regulations; and

b) the financial liability and the embedded derivative must be classified, recognized, and measured in accordance with the provisions of this Resolution.

Section
IIDo
Recognition and Measurement

Subsection
IDo
Initial Recognition and Measurement

Art. 12. Financial instruments must be recognized initially on the date of their acquisition, origination, or issuance:

I - at the transaction price, calculated in accordance with current regulations, in the case of receivables from contracts with customers without a significant financing component; or

II - at fair value, calculated in accordance with current regulations, in other cases.

§ 1. If the fair value of the instrument measured in accordance with item II of the caput differs from the value of the consideration paid or received in the acquisition, origination, or issuance of the financial instrument, the institutions mentioned in item I of the caput of Art. 1 must:

I - recognize the difference in the period's result, for financial instruments measured at Level 1 of the fair value hierarchy, in accordance with current regulations; or

I - recognize the difference in the period's result for financial instruments measured at Level 1 or Level 2 of the fair value hierarchy, in accordance with current regulations; or (Wording given, effective from 1/8/2024, by BCB Resolution No. 397, of 3/7/2024.)

II - defer the difference according to the realization of the gain or loss, in other cases.

§ 2. The provisions of § 1, item II, do not apply to instruments classified in the amortized cost category measured at Level 3 of the fair value hierarchy, which must be recognized at the value of the consideration paid or received in the acquisition, origination, or issuance.

Art. 13. Upon initial recognition of financial instruments classified in the amortized cost or fair value through other comprehensive income categories, the value calculated in accordance with Art. 12 must be adjusted as follows:

I - in the case of financial assets, transaction costs attributable individually to the operation must be added and any values received in the acquisition or origination of the instrument must be deducted; and

II - in the case of financial liabilities, transaction costs attributable individually to the operation must be deducted and any values received in the issuance of the instrument must be added.

§ 1. Expenses incurred in the acquisition, origination, or issuance of the instrument that cannot be calculated and controlled individually, without allocation, throughout the entire term of the instrument, must be recognized as an expense in the period in which they occur.

§ 2. It is optional to recognize, in the period's result, transaction costs and values received in the acquisition or origination of the instrument considered immaterial.

§ 3. The institution that uses the option provided in § 2 must define, in its accounting policy, relative and absolute materiality criteria that are:

I - consistent and verifiable; and

II - applied to all financial instruments, regardless of the nature of the cost or revenue to be recognized.

§ 4. It is presumed that a cost and revenue are material if they represent more than 1% (one percent):

I - of the total revenue the institution will obtain from the financial asset; or

II - of the total charges the institution will incur with the financial liability.

Art. 14. The recognition of financial assets and liabilities or groups of financial assets and liabilities based on net value is prohibited, including when managed together.

Subsection
IIDa
Recognition of Revenues and Charges

Art. 15. Revenues and charges of financial instruments must be recognized in the result, at a minimum, at the time of interim and annual financial statements, pro rata temporis, using the effective interest method.

Sole paragraph. For financial instruments classified in the fair value through profit or loss category, revenues and charges, if any, must be recognized in the result according to interest rates and other forms of remuneration and charges defined in the contract.

Art. 16. Dividends and other similar forms of remuneration of equity instruments must be recognized by the investing institution only when it obtains the right to receive them, measured according to the value declared by the invested entity.

Sole paragraph. For equity instruments for which the institution has used the option provided in Art. 6, the dividends and remunerations referred to in the caput must be:

I - deducted from the carrying amount of the instrument, at the moment the institution obtains the right to receive them, if they refer to the year of acquisition of the instrument and represent a recovery of the initial investment; or

II - recognized in the period's result, in other cases.

Art. 17. The recognition in the period's result of revenue of any nature not yet received relating to a financial asset with credit recovery problems is prohibited.

§ 1. The revenues referred to in the caput can only be recognized in the result upon their actual receipt.

§ 2. The provisions of the caput and § 1 do not apply to revenues generated by the recovery of written-off assets as provided in Art. 49.

Art. 18. The institutions mentioned in item I of the caput of Art. 1 must resume recognizing revenues relating to the asset referred to in Art. 17, as provided in Art. 15, prospectively, from the period in which the instrument ceases to be characterized as a financial asset with credit recovery problems.

Art. 19. The provision for expected credit losses associated with the credit risk of financial assets must be recognized, if applicable, after the recognition of revenues referred to in Art. 15.

Subsection
IIIDas
Subsequent Measurements

Art. 20. Financial instruments classified in the fair value through profit or loss or fair value through other comprehensive income categories must be evaluated at fair value, as defined in current regulations, at a minimum, at the time of interim and annual financial statements, computing the appreciation or depreciation in offset to the appropriate account:

I - of revenue or expense, in the period's result, if it relates to financial instruments classified in the fair value through profit or loss category; or

II - of other comprehensive income, net of tax effects, if it relates to financial assets classified in the fair value through other comprehensive income category.

§ 1. The institutions mentioned in item I of the caput of Art. 1 must recognize gains or losses from the appreciation or depreciation mentioned in the caput separately from the provision expense for losses associated with credit risk, if applicable.

§ 2. Unrealized gains or losses recorded in other comprehensive income, in accordance with item II of the caput, must be transferred, upon total or partial derecognition, in the corresponding proportion, to:

I - the account representing accumulated profits or losses, without effect on the period's result, if the option provided in Art. 6 is used; and

II - the period's result, in other cases.

§ 3. The portion of the variation in the fair value of a derivative financial liability measured at Level 2 or 3 of the fair value hierarchy resulting from changes in the institution's own credit risk must be recognized as a separate component in other comprehensive income, net of tax effects.

§ 4. In the case of financial assets classified in the fair value through profit or loss category, the provisions of § 1 apply only to:

I - credit operations and other operations with credit granting characteristics; and

II - financial assets with a delay of more than 90 (ninety) days in the payment of principal or charges.

Art. 21. Gains or losses from exchange rate variation of financial instruments must be recognized in the period's result.

Sole paragraph. For equity instruments for which the institution has used the option provided in Art. 6, gains or losses from exchange rate variation must be recognized in other comprehensive income.

Subsection
IVDa
Measurement of Renegotiated or Restructured Instruments

Art. 22. In the case of restructuring of financial assets, the gross carrying amount of the instrument must be reassessed to represent the present value of the restructured contractual cash flows, discounted by the originally contracted effective interest rate.

§ 1. Transaction costs must be added to and any values received in the restructuring of the instrument must be deducted from the gross carrying amount of the restructured financial asset.

§ 2. The difference resulting from the reassessment mentioned in the caput must be recognized in the period's result in which the restructuring occurs.

§ 3. In calculating the difference referred to in § 2, any new credit grants by the institution in the restructuring of the financial asset must not be considered.

§ 4. If there is no contractual provision for future cash flows, the institutions mentioned in item I of the caput of Art. 1 must consider, in calculating the gross carrying amount of the restructured instrument, the present value of the best estimate of the amounts to be received during the expected term of the instrument.

§ 5. If the restructuring involves more than one instrument, the institutions mentioned in item I of the caput of Art. 1 must calculate the present value of the restructured contractual cash flows, discounted by the average of the originally contracted effective interest rates, weighted by the value of the instruments involved.

§ 6. The provisions of this article also apply to financial assets acquired or originated for total or partial liquidation with the objective of restructuring financial instruments.

Art. 23. In the case of renegotiation of financial instruments not characterized as restructuring, the institution must reassess the instrument so that it represents the present value of cash flows discounted by the effective interest rate, according to the renegotiated contractual conditions.

Subsection
VDa
Measurement of Investments Held for Sale

Art. 24. Investments in associates, subsidiaries, and jointly controlled entities evaluated by the equity method that the institution mentioned in item I of the caput of Art. 1 decides to sell, which are available for immediate sale and whose disposal is highly probable, must be measured, from the date the institution decides to sell them, at the lower value between:

I - the net carrying amount of the asset, less provisions for impairment losses; and

II - the fair value of the asset, evaluated in accordance with specific regulations, net of selling expenses.

Section
IIIDa
Derecognition and Transfer

Subsection
IDos
Financial Assets

Art. 25. The institutions mentioned in item I of the caput of Art. 1 must derecognize a financial asset when:

I - the contractual rights to the cash flows of the financial asset expire; or

II - the financial asset is transferred and the transfer qualifies for derecognition in accordance with this Resolution.

Sole paragraph. For the purposes of the provisions of item II of the caput, a financial asset is transferred when:

I - the contractual rights to the cash flows are transferred; or

II - the contractual rights to the cash flows are retained, but the institution assumes a contractual obligation to pay the cash flows to one or more recipients, provided that the following conditions are observed:

a) no obligation to pay amounts to potential recipients, except if collecting amounts equivalent to the original asset;

b) prohibition, by the terms of the transfer contract, for the institution to sell or pledge the original asset, except as collateral to potential recipients for the obligation to pay them cash flows; and

c) obligation of the institution to remit any cash flows it collects on behalf of potential recipients, without significant delay and without the right to reinvest these cash flows, except investments in cash or cash equivalents during the short settlement period, provided that any interest earned is passed on to the recipients.

Art. 26. The institutions mentioned in item I of the caput of Art. 1 must classify the transfer of financial assets, for accounting record purposes, into the following categories:

I - operations with substantial transfer of risks and benefits;

II - operations with substantial retention of risks and benefits; and

III - operations without substantial transfer or retention of risks and benefits.

§ 1. In the category of operations with substantial transfer of risks and benefits, operations must be classified in which the seller or assignor substantially transfers all risks and benefits of ownership of the financial asset subject to the operation, such as:

I - unconditional sale of a financial asset;

II - sale of a financial asset together with a call option to repurchase the asset at its fair value at the time of repurchase; and

III - sale of a financial asset together with a call or put option whose exercise is unlikely to occur.

§ 2. In the category of operations with substantial retention of risks and benefits, operations must be classified in which the seller or assignor substantially retains all risks and benefits of ownership of the financial asset subject to the operation, such as:

I - sale of a financial asset together with a commitment to repurchase the same asset at a fixed price or at the selling price plus any yields;

II - securities lending contracts;

III - sale of a financial asset together with a total return swap that transfers the market risk exposure back to the seller or assignor;

IV - sale of a financial asset together with a call or put option whose exercise is likely to occur; and

V - sale of receivables for which the seller or assignor guarantees in any way to compensate the buyer or assignee for credit losses that may occur, or whose sale occurred together with the acquisition of subordinated shares of the investing buyer's fund, observing the provisions of Art. 27.

§ 3. In the category of operations without substantial transfer or retention of risks and benefits, operations must be classified in which the seller or assignor does not substantially transfer or retain all risks and benefits of ownership of the financial asset subject to the operation.

Art. 27. The assessment regarding the transfer or retention of ownership risks and benefits of financial assets is the responsibility of the institution mentioned in item I of the caput of Art. 1 and must be carried out based on consistent and verifiable criteria, using as a methodology, preferably, the comparison of the institution's exposure, before and after the sale or transfer, regarding the variation in the present value of the expected cash flow associated with the financial asset discounted by the appropriate market interest rate, observing that:

I - the selling or assigning institution substantially transfers all risks and benefits when its exposure to the variation in the present value of the expected future cash flow is significantly reduced; and

II - the selling or assigning institution substantially retains all risks and benefits when its exposure to the variation in the present value of the expected future cash flow is not significantly altered.

§ 1. The assessment defined in the caput is not necessary in cases where the transfer or retention of ownership risks and benefits of the financial asset is evident.

§ 2. It is presumed that the risks and benefits of the financial asset were retained by the seller or assignor when the value of the guarantee provided, in any way, to compensate for credit losses is higher than the expected loss or when the value of the subordinated shares of investment funds acquired is higher than the expected loss.

§ 3. The assessment defined in the caput cannot diverge between entities that are counterparties in the same operation.

Art. 28. For the accounting record of the sale or transfer of financial assets classified in the category of operations with substantial transfer of risks and benefits, the following procedures must be observed:

I - by the selling or assigning institution:

a) the financial asset subject to sale or transfer must be derecognized; and

b) the positive or negative result calculated in the negotiation must be recognized in the period's result separately; and

II - by the buying or assigning institution, the acquired financial asset must be recorded in accordance with Arts. 12 and 13, in conformity with the nature of the original operation, maintaining off-book analytical controls over the original contracted value of the operation.

Art. 29. For the accounting record of the sale or transfer of financial assets classified in the category of operations with substantial retention of risks and benefits, the following procedures must be observed:

I - by the selling or assigning institution:

a) the financial asset subject to sale or transfer must remain, in its entirety, registered in the asset;

b) the values received in the operation must be registered in the asset with a corresponding liability regarding the obligation assumed; and

c) revenues and expenses must be recognized separately in the period's result for the remaining term of the operation, at a minimum monthly; and

II - by the buying or assigning institution:

a) the values paid in the operation must be registered in the asset as a right to receive from the assigning institution; and

b) revenues must be recognized in the period's result, over the remaining term of the operation, at least monthly.

Art. 30. For the accounting recording of the sale or transfer of financial assets classified in the category of operations without transfer or retention of substantial risks and benefits, with transfer of control of the financial asset subject to the transaction, the following must be observed:

I - the procedures defined in Art. 28; and

II - any new rights or obligations arising from the sale or transfer must be recognized separately as an asset or liability.

Art. 31. For the accounting recording of the sale or transfer of financial assets classified in the category of operations without transfer or retention of substantial risks and benefits, with retention of control of the financial asset subject to the transaction, the following procedures must be observed:

I - by the selling or transferring institution:

a) the asset remains recorded in proportion to its continued involvement, which is the value by which the institution remains exposed to changes in the value of the transferred asset;

b) the liability related to the obligation assumed in the operation must be recognized;

c) the positive or negative result calculated in the transaction, regarding the portion whose risks and benefits were transferred, must be recognized proportionally in the period's result in a segregated manner; and

d) revenues and expenses must be recognized in a segregated manner in the period's result, over the remaining term of the operation, at least monthly; and

II - by the buying or acquiring institution:

a) the amounts paid in the operation must be recorded in the asset:

1. in accordance with the nature of the original operation in the proportion corresponding to the financial asset for which the buyer or acquirer acquires the risks and benefits; and

2. as a right to receive from the transferring institution in the proportion corresponding to the financial asset for which the buyer or acquirer does not acquire the risks and benefits; and

b) revenues must be recognized in the period's result, over the remaining term of the operation, at least monthly.

Sole Paragraph. For the purposes of the provision in item "a" of item I of the main text, when continued involvement takes the form of a guarantee, of any nature, this value must be the lesser of the value of the financial asset itself and the guaranteed value.

Art. 32. The financial asset sold or transferred and the respective liability generated in the operation, if any, as well as the revenue and expense resulting therefrom, must be recorded in a segregated manner, prohibiting the offsetting of assets and liabilities, as well as revenues and expenses.

Art. 33. The operation of sale or transfer of financial assets whose collection remains under the responsibility of the seller or transferor must be recorded as simple collection on behalf of third parties.

Sole Paragraph. Any benefits and obligations arising from the collection contract must be recorded as assets and liabilities at fair value.

Art. 34. For the accounting recording of financial assets offered as collateral for operations of sale or transfer, the following procedures must be observed:

I - by the selling or transferring institution:

a) reclassify the asset separately from other financial assets of the same nature; and

b) derecognize the financial asset, if it becomes delinquent in the operation for which the financial asset was offered as collateral and no longer has the right to demand its return; and

II - by the buying or acquiring institution:

a) recognize the liability, at fair value, related to the obligation to return the financial asset received as collateral to the selling or transferring institution, if it has been sold; and

b) recognize the financial asset at fair value or derecognize the obligation cited in item "a", as the case may be, if the selling or transferring institution becomes delinquent in the operation for which the financial asset was offered as collateral and no longer has the right to demand its return.

Sole Paragraph. Except in the situation cited in item "b" of item I of the main text, the selling or transferring institution must continue to recognize the financial asset offered as collateral, and the buying or acquiring institution must not recognize it as its asset.

Art. 35. The provisions of this Subsection:

I - also apply to operations of sale or transfer of a portion of a financial asset or a group of similar financial assets;

II - must only be applied to a portion of a financial asset if the object of the sale or transfer is a specifically identified part of the cash flow of the financial asset or a proportion of the cash flow of the financial asset; and

III - must be applied to the financial asset in its entirety, in other cases.

Subsection II
Of Financial Liabilities

Art. 36. The institutions mentioned in item I of the main text of Art. 1 must derecognize a financial liability when the obligation specified in the contract expires, is settled, cancelled, or extinguished.

CHAPTER III
OF THE PROVISION FOR EXPECTED LOSSES ASSOCIATED WITH CREDIT RISK

Section I
Of the Allocation of Financial Instruments into Stages

Art. 37. The institutions mentioned in item I of the main text of Art. 1 must allocate financial instruments into the following stages:

I - in the first stage:

a) financial instruments that, at initial recognition, are not characterized as financial assets with credit impairment issues; and

b) financial instruments whose credit risk has not increased significantly after initial recognition;

II - in the second stage:

a) financial instruments whose credit risk has increased significantly compared to that assessed at original allocation in the first stage; and

b) financial instruments that cease to be characterized as assets with credit impairment issues; and

III - in the third stage, financial instruments with credit impairment issues.

§ 1º For financial guarantees provided, the allocation referred to in the main text must consider the probability of future disbursements by the institution in the event that the guaranteed counterparty does not honor the obligation according to the existing contractual provisions.

§ 2º A financial instrument allocated in the third stage at initial recognition that subsequently ceases to be characterized as an asset with credit impairment issues must be reallocated to the first stage.

§ 3º Reallocation to the first stage is permitted for a financial instrument that ceases to be characterized as an asset with credit impairment issues whose credit risk has been reduced to a level similar to:

I - that at initial recognition; or

II - that at original allocation in the first stage, in the case of instruments referred to in § 2º.

§ 4º Reallocation of a financial instrument from the second to the first stage is permitted if new relevant facts, duly proven, indicate a reduction in the credit risk of the instrument to a level similar to that at original allocation in the first stage.

§ 5º When a financial instrument is allocated in the third stage, the institution must reallocate all financial instruments of the same counterparty to the third stage on the base date of the balance sheet relative to the month in which this allocation occurred.

§ 6º Non-reallocation established in § 5º is permitted, on an exceptional basis, for a financial instrument that, due to its nature or purpose, presents a credit risk significantly lower than that of the instrument of the same counterparty characterized as an asset with credit impairment issues.

Art. 38. For the purposes of reallocating financial instruments into stages, the assessment of the occurrence of a significant increase in credit risk must be carried out by comparing the credit risk existing at the time of the instrument's original allocation in the first stage with the credit risk existing on the assessment date.

§ 1º In renegotiation that does not constitute a restructuring:

I - if this renegotiation involves only one financial instrument, the credit risk at the time of the original instrument's allocation in the first stage must be compared with the credit risk of the renegotiated instrument; or

II - if this renegotiation involves more than one financial instrument, the credit risk at the time of the original allocation in the first stage of the oldest instrument must be compared with the credit risk of the renegotiated instrument, except when the value of the oldest instrument is not significant relative to the total renegotiated amount, in which case the credit risk of the instrument with the highest value must be compared with the credit risk of the renegotiated instrument.

§ 2º For the purposes of the provision in the main text, the credit risk of the financial instrument must be determined by the probability of the instrument becoming an asset with credit impairment issues during the entire expected term of the instrument.

§ 3º For the purposes of the provision in the main text, it is admitted that the institution determines the credit risk considering the probability of the financial instrument being characterized as a financial asset with credit impairment issues in the 12 (twelve) months following the assessment date, except if:

I - the financial instrument only has significant payment obligations after the 12 (twelve) months following the assessment date;

II - changes in relevant macroeconomic factors or other factors related to credit risk are not adequately reflected in the probability of the financial instrument being characterized as a financial asset with credit impairment issues in the 12 (twelve) months following the assessment date; or

III - changes in factors related to credit risk only have an impact or have a more significant effect on the credit risk of the financial instrument after 12 (twelve) months.

§ 4º The expected term of the instrument cannot exceed the contractual term, except when it concerns:

I - an unused credit commitment; or

II - instruments whose contractual term:

a) is significantly lower than the expected term of the instrument; and

b) does not faithfully represent the term of the instrument, evaluated according to the economic essence of the operation.

§ 5º If it is not possible to reliably measure the expected term of the instrument, the institution must consider the contractual term.

§ 6º For the purposes of assessing the occurrence of a significant increase in credit risk referred to in the main text, the institution must consider all reasonable and supportable information that may affect the credit risk of the instrument, considering, at a minimum, the following elements:

I - significant, current, or expected changes in credit risk indicators of the counterparty, internal and external to the institution;

II - adverse changes in business, financial, or economic conditions, current or expected, capable of significantly altering the counterparty's ability to fulfill its obligations under the agreed conditions;

III - restructuring of other obligations of the counterparty; and

IV - delay in payment of principal or charges.

§ 7º For financial instruments allocated in the first stage, a significant increase in credit risk is considered to have occurred, regardless of other factors, when there is a delay of more than 30 (thirty) days in the payment of principal or charges.

§ 8º In the face of consistent and verifiable evidence, duly proven, that a significant increase in credit risk occurs in a period longer than that defined in § 7º, it is admitted that the institution considers a delay of up to 60 (sixty) days.

§ 9º The institution must consider a period shorter than that established in § 7º if it is characterized that, within that period, there is a significant increase in credit risk.

Art. 39. The allocation referred to in Art. 37 must be reviewed:

I - monthly, in view of delay in payment of principal or charges;

II - every 6 (six) months for instruments from the same counterparty whose amount exceeds 5% (five percent) of the institution's equity;

III - once every 12 (twelve) months, for other instruments not covered by the provision in item II;

IV - whenever new facts indicate a significant change in credit quality, including those resulting from changes in market conditions or the economic scenario; and

V - when the instrument is renegotiated.

§ 1º The review referred to in items II and III of the main text is waived for financial instruments that have low credit risk.

§ 2º For the purposes of the provision in § 1º, credit risk is considered low if:

I - the instrument, analyzed individually, presents an insignificant probability of being characterized as an asset with credit impairment issues during its entire expected term;

II - the counterparty has proven capacity to honor its obligations under the agreed conditions; and

III - the financial capacity of the counterparty is not significantly impacted by adverse changes in economic and market conditions.

Section II
Of the Assessment of Expected Loss Associated with Credit Risk

Art. 40. The institutions mentioned in item I of the main text of Art. 1 must assess the expected loss associated with the credit risk of financial instruments considering, at a minimum, the following parameters:

I - the probability of the instrument being characterized as an asset with credit impairment issues, considering, at a minimum:

a) the expected term of the financial instrument; and

b) the current economic situation and reasonable and supportable forecasts of possible changes in economic and market conditions that affect the credit risk of the instrument, during its expected term, including due to the existence of any guarantees or collateral linked to the instrument; and

II - the expectation of recovery of the financial instrument, considering, at a minimum:

a) the recovery costs of the instrument;

b) the characteristics of any guarantees or collateral, such as modality, liquidity, and probable present value of realization;

c) historical recovery rates in financial instruments with similar characteristics and credit risk;

d) the granting of advantages to the counterparty; and

e) the current economic situation and reasonable and supportable forecasts of possible changes in economic and market conditions that may affect the probable present value of realization of any guarantees or collateral linked to the instrument.

§ 1º The assessment of expected loss is the responsibility of the institution holding the instrument and must be carried out based on consistent and verifiable criteria, supported by internal and external information.

§ 2º To estimate expected loss, the institution must use a measurement technique compatible with the nature and complexity of the financial instruments, the size, risk profile, and business model of the institution.

§ 3º The probability of the instrument being characterized as an asset with credit impairment issues referred to in item I of the main text must be consistent for all financial instruments of the same counterparty.

§ 4º In estimating the probable present value of realization mentioned in item "b" of item II of the main text, the institution must use:

I - the fair value of the guarantees or collateral;

II - the estimated costs and timeframes for execution, sale, and receipt of the guarantees or collateral; and

III - the effective interest rate of the financial instrument at initial recognition.

§ 5º The assessment of expected loss associated with credit risk based on delay in payment of principal or charges, loss history, and other registration, compliance, or non-compliance information related to the counterparty to which the institution has access is optional for financial assets:

I - whose settlement term is up to 12 (twelve) months;

II - that do not constitute, collectively, a relevant exposure for the institution; and

III - that are not:

a) credit operations;

b) financial instruments with a credit granting characteristic;

c) leasing operations;

d) payment transactions; and

e) securities.

Art. 41. The expected loss associated with credit risk must be reviewed, at a minimum:

I - every 6 (six) months, for instruments from the same counterparty whose amount exceeds 5% (five percent) of the institution's equity;

II - every 12 (twelve) months, for other instruments; and

III - whenever new facts indicate a relevant change in the credit risk of the instrument and in the probable value of realization of guarantees or collateral, if existing.

Section III
Of the Treatment of Instruments by Portfolios

Art. 42. The calculation of credit risk referred to in Art. 38 and of expected loss associated with credit risk, according to Art. 40, may be carried out collectively by using a model suitable for the treatment of credit risk by portfolio.

§ 1º Only financial instruments may be grouped, as provided in the main text:

I - that belong to the same homogeneous risk group;

II - that are defined in the institution's credit policy and credit management procedures as retail operations, considering, at a minimum:

a) the value of the instrument; and

b) the total exposure of the institution to the counterparty; and

III - whose management is carried out in a massified manner.

§ 2º For the purposes of this Resolution, a homogeneous risk group is the set of financial instruments with similar characteristics that allow the assessment and quantification of credit risk collectively, considering:

I - the credit risk characteristics of the counterparty;

II - the credit risk characteristics of the instrument, considering the modality of the instrument and the type of guarantees or collateral related to the instrument, if existing;

III - the stage in which the instrument is allocated;

IV - the delay in payment of principal or charges;

V - the credit risk and stage allocation of other instruments of the same counterparty; and

VI - other relevant aspects, such as the economic segment and geographic location of the counterparty and the period of acquisition or origination and the term of the instrument.

§ 3º The institution must establish consistent and verifiable criteria, duly documented, to define homogeneous risk group, instrument value, and total exposure to a counterparty considered in the determination of retail operations.

§ 4º In defining homogeneous risk groups, the institution must not significantly concentrate instruments in certain groups, unless the concentrations are justified by evidence that proves reasonable homogeneity of the instruments and their respective counterparties.

§ 5º The quantity of instruments associated with a given homogeneous risk group must be sufficient to allow adequate measurement and validation of the group's risk parameters.

§ 6º The institution must review:

I - the definition of homogeneous risk groups, observing the provision in § 2º, periodically and whenever there is:

a) evidence of loss of homogeneity;

b) insufficiency of instruments in a given group; or

c) significant increase in the concentration of instruments in the same group; and

II - the allocation of instruments into homogeneous risk groups:

a) monthly, in view of delay in payment of principal or charges;

b) whenever there is evidence that the instrument's characteristics no longer resemble those of the group; and

c) annually, in other cases.

Art. 43. The provision in § 5º of Art. 37 and § 3º of Art. 40 do not apply to the instruments referred to in this Section.

Section IV
Of the Calculation of the Provision for Expected Losses Associated with Credit Risk

Subsection I
Of the Methodology for Calculating the Provision for Expected Losses Associated with Credit Risk

Art. 44. The institutions mentioned in item I of the main text of Art. 1 must establish a provision in an amount corresponding to expected losses associated with the credit risk of financial instruments.

Art. 45. For the purposes of measuring the provision, the following must be considered as the calculation base:

I - the gross carrying amount of financial assets, except leasing operations;

II - the present value of total amounts to be received in leasing operations;

III - the present value of estimated future disbursements attributable to the institution linked to financial guarantees provided;

IV - the present value of the estimate of utilization of resources from credit commitments; and

V - the present value of credit to be disbursed.

§ 1º In calculating the present value referred to in item II of the main text, a rate equivalent to the financial charges provided for in the contract must be used, or, if there is no such provision, the rate that equalizes the value of the leased asset, at the time of contracting, to the present value of all receipts and payments provided for over the contractual term, including:

I - the guaranteed residual value; or

II - the probable realization value of the leased asset at the end of the contract, minus selling costs, in the case of no guaranteed residual value.

§ 2º For the values referred to in items IV and V of the main text, the following must be considered:

I - a period of 12 (twelve) months, for credit commitments and credits to be disbursed allocated in the first stage; or

II - the expected term of the instrument, for credit commitments and credits to be disbursed allocated in other stages.

Art. 46. The provision for expected losses associated with credit risk must be established, at initial recognition of the financial instrument, as an expense of the period, in counterpart to the appropriate account:

I - of the asset, in the case of losses related to financial assets; or

II - of the liability, in the case of losses related to:

a) financial guarantees provided;

b) credit commitments and credits to be disbursed referred to in Art. 1, item I, item "b", item 3; and

c) future annuities related to operational leasing operations.

Art. 47. The institution must establish the provision for expected losses associated with credit risk according to the stage in which the financial instrument is allocated, as follows:

I - first stage: the provision must correspond to the expected loss calculated by the institution, considering the probability of the financial instrument being characterized as a financial asset with credit impairment issues in the next 12 (twelve) months or during the expected term of the instrument, if this is less than 12 (twelve) months;

II - second stage: the provision must correspond to the expected loss calculated by the institution, considering the probability of the financial instrument being characterized as an asset with credit impairment issues during the entire expected term of the financial instrument; and

III - third stage: the provision must correspond to the expected loss calculated by the institution, considering that the instrument is characterized as an asset with credit recovery problems.

§ 1º The institution is authorized to recognize the provision for expected credit losses associated with credit risk in accordance with item II of the main text for instruments allocated to the first stage.

§ 2º The institution that utilizes the option provided in § 1º must recognize the provision for expected credit losses associated with credit risk in accordance with item II of the main text for all instruments with similar characteristics, consistently over time.

Art. 48. The provision for expected credit losses associated with credit risk must be reviewed, at a minimum, monthly, or whenever there is a change in the estimate of the expected loss or in the stage in which the instrument is allocated, to the result of the period.

Art. 49. The financial asset must be derecognized due to expected credit losses associated with credit risk if it is not probable that the institution will recover its value.

§ 1º The institutions mentioned in item I of the main text of art. 1 must maintain controls to identify financial assets derecognized under this article while all collection procedures have not been exhausted, observing a minimum period of 5 (five) years.

§ 2º Instruments derecognized under this article that are renegotiated must be allocated, on the date of renegotiation, to the third stage, with a provision for expected credit losses associated with credit risk equal to 100% (one hundred percent) of the value of the instrument.

§ 2º Instruments derecognized under this article that cease to meet the condition provided in the main text must be: (Wording given, effective from 10/1/2025, by BCB Resolution No. 504, of 9/23/2025.)

I - recognized in accordance with arts. 22 and 23, in the case of restructuring or renegotiation, or by the present value of the best estimate of the amounts to be received, in other cases; and (Included, effective from 10/1/2025, by BCB Resolution No. 504, of 9/23/2025.)

II - characterized as an asset with credit recovery problems, with a provision for expected credit losses associated with credit risk equal to 100% (one hundred percent) of the value of the instrument. (Included, effective from 10/1/2025, by BCB Resolution No. 504, of 9/23/2025.)

§ 3º The provisions of § 2º also apply to financial instruments used to settle or refinance instruments derecognized in the manner of this article.

§ 4º The establishment of a provision lower than that provided in § 2º is authorized when there is significant amortization of the operation or when new relevant facts, duly proven, indicate significant improvement in the counterparty's ability to honor the obligation, under the agreed conditions.

§ 5º The institution must establish consistent and verifiable criteria, duly documented, for the derecognition of financial assets referred to in the main text.

Subsection IID
The Simplified Methodology for Calculating the Provision for Expected Credit Losses Associated with Credit Risk

Art. 50. The following institutions must use the simplified methodology for calculating the provision for expected credit losses associated with credit risk:

I - securities brokers, securities distributors, and currency brokers classified in Segment 4 (S4) or Segment 5 (S5), according to current regulation, or members of a prudential conglomerate classified in these segments;

II - payment institutions that are not:

a) leaders of Type 3 conglomerates classified in Segments 2 (S2) and 3 (S3);

b) members of Type 1 prudential conglomerates classified in Segments 1 (S1), 2 (S2), and 3 (S3), according to current regulation; and

c) leaders of Type 2 prudential conglomerates that have total assets, calculated according to the criteria and procedures contained in the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif), greater than 0.1% (one tenth of one percent) of the Gross Domestic Product (GDP) of Brazil; and

c) leaders of Type 2 prudential conglomerates that have total assets, calculated according to the criteria and procedures contained in the Accounting Standard of Institutions Regulated by the Central Bank of Brazil – Cosif, greater than 0.1% (one tenth of one percent) of the Gross Domestic Product – GDP of Brazil; (Wording given by BCB Resolution No. 553, of 3/3/2026.)

III - consortium administrators that are not members of a prudential conglomerate classified in Segments 1 (S1), 2 (S2), and 3 (S3), according to current regulation.

III - consortium administrators that are not members of a prudential conglomerate classified in Segment 1 – S1, 2 – S2, and 3 – S3, according to current regulation; and (Wording given by BCB Resolution No. 553, of 3/3/2026.)

IV - virtual asset service providers members of a prudential conglomerate classified in Segment 4 – S4 or Segment 5 – S5, according to current regulation. (Included by BCB Resolution No. 553, of 3/3/2026.)

§ 1º The use of the methodology for assessing expected loss and calculating and establishing the provision for expected credit losses associated with credit risk as defined in Sections I to III of this Chapter is authorized, with prior authorization from the Central Bank of Brazil:

I - to securities brokers, securities distributors, and currency brokers classified in Segment 4 (S4), according to current regulation; and

II - to payment institutions that are leaders of Type 3 prudential conglomerates classified in Segment 4 (S4), according to current regulation.

§ 2º The authorization referred to in § 1º is conditioned on the institution proving that it maintains internal models and systems for measuring and classifying credit risk, internal controls, and risk management compatible with the nature of the operations, the complexity of the products, and the exposure to credit risk.

§ 3º Once the authorization referred to in § 1º is granted, the use of the simplified methodology depends on approval from the Central Bank of Brazil.

§ 4º The authorization referred to in § 1º may be canceled, at the discretion of the Central Bank of Brazil, if the requirements referred to in § 2º cease to be met or if the calculated provision values do not adequately reflect the expected credit loss associated with the institution's credit risk.

§ 5º For the purposes of the provision in item "c" of item II of the main text, the GDP of Brazil corresponds to the Gross Domestic Product calculated at market prices and current values published by the Brazilian Institute of Geography and Statistics (IBGE), accumulated for a period of four consecutive quarters ending on the base dates of June 30 and December 31, calculated within ninety days after the base date to which it refers, with no subsequent revision allowed.

Art. 51. The simplified methodology referred to in art. 50 must consider:

I - regarding the corporate counterparty:

a) economic-financial situation;

b) degree of indebtedness;

c) payment history;

d) credit limits at the institution and in the financial system; and

e) adequacy between the debtor's cash flows and its obligations with financial institutions;

II - regarding the natural person counterparty:

a) income;

b) commitment of income with obligations contracted with the institution and with other financial institutions and other institutions authorized to operate by the Central Bank of Brazil;

c) timeliness in paying obligations contracted with the institution and with other financial institutions and other institutions authorized to operate by the Central Bank of Brazil; and

d) net worth; and

III - regarding the financial instrument:

a) nature and purpose of the operation;

b) characteristics of guarantees or collateral, when existing, such as modality, liquidity, and probable present value of realization; and

c) book value.

§ 1º The calculation of the provision for expected credit losses associated with credit risk of financial instruments is the responsibility of the institution holding the instrument, or that retains risks and benefits of transferred financial instruments in the manner of this Resolution, and must be carried out based on consistent and verifiable criteria, supported by internal and external information.

§ 2º In addition to the aspects mentioned in the main text, other registration, compliance, and non-compliance information regarding the counterparty to which the institution has access must be considered.

§ 3º In estimating the probable present value of realization mentioned in item "b" of item III of the main text, the institutions mentioned in item I of the main text of art. 1 must use:

I - the fair value of sale of guarantees or collateral;

II - the estimated costs and timeframes for execution, sale, and collection of guarantees or collateral; and

III - the effective interest rate of the financial instrument at initial recognition.

§ 4º The provision for expected credit losses associated with credit risk for financial instruments of the same counterparty must be defined considering that which presents the highest expected loss, exceptionally admitting a lower provision for a specific instrument that, due to its nature or purpose, presents significantly lower credit risk.

§ 4º When a financial instrument is characterized as an asset with credit recovery problems, all financial instruments of the same counterparty must, on the base date of the balance sheet for the month in which the characterization occurred, be characterized as a financial asset with credit recovery problems, exceptionally admitting the non-characterization of a specific instrument that, due to its nature or purpose, presents significantly lower credit risk. (Wording given, effective from 8/1/2024, by BCB Resolution No. 397, of 7/3/2024.)

§ 5º The provisions of Sections I to III of this Chapter and arts. 45, § 2º, and 47 do not apply to institutions that use the simplified methodology referred to in the main text.

CHAPTER IV
HEDGE ACCOUNTING

Section I
Hedge Instruments

Art. 52. The following may be designated as hedge instruments:

I - a financial derivative instrument, except a derivative embedded in a hybrid contract whose main component is a financial asset;

II - a non-derivative financial asset classified in the fair value through profit or loss category; and

III - a foreign exchange variation component of a non-derivative financial liability or a non-derivative financial asset, except when this asset is an equity instrument of another entity classified in the fair value through other comprehensive income category, exclusively to protect against foreign exchange risk.

§ 1º Subject to the provisions of the main text, the institutions mentioned in item I of the main text of art. 1 may designate as a hedge instrument:

I - an instrument in its entirety; or

II - a proportion of the total value of the instrument.

§ 2º The designation of a combination of the hedge instruments listed in the main text is permitted, including cases where the risks arising from some hedge instruments compensate those arising from others.

§ 3º The designation of the hedge instrument must be carried out considering the fair value variations relative to its entire contractual term.

§ 4º For the purposes of hedge accounting, only contracts with a counterparty external to the reporting institution are eligible for designation as a hedge instrument.

§ 5º Sold options do not qualify as hedge instruments, unless they are designated as compensation for purchased options, including those embedded in another financial instrument.

Section II
Hedged Items

Art. 53. The following may be designated as hedged items:

I - asset;

II - liability;

III - a firm commitment not yet recognized as an asset or liability;

IV - a highly probable forecast transaction, conducted with a counterparty external to the institution; and

V - a net investment in a foreign operation, exclusively to protect against foreign exchange risk.

§ 1º The institutions mentioned in item I of the main text of art. 1 may designate as a hedged item:

I - an item in its entirety;

II - a component of the item;

III - a group of items managed together, or a component of this group, including a group of items that constitute a net position; and

IV - an aggregated exposure of items mentioned in the main text and one or more financial derivative instruments.

§ 2º In the case of designating a component of the item, as per item II of § 1º, the following may be designated as a hedged item:

I - a variation in cash flows or fair value of an item attributable to a specific risk or risks, provided that the risk component is separately identifiable and reliably measurable;

II - one or more selected contractual cash flows; or

III - a proportion or a specific part of the nominal value of the item or group of items.

§ 3º For the purposes of hedge accounting, a net position is considered the result of a group of items whose risk positions compensate each other.

§ 4º In the case of cash flow hedge, as defined in item II of art. 55, a net position is only eligible as a hedged item if the protected risk is of a foreign exchange nature and the designation specifies the nature, amount, and specific periods in which these exposures affect the result.

§ 5º For the purposes of hedge accounting, only contracts with a counterparty external to the reporting institution are eligible for designation as a hedged item, with the exception of transactions that should not be eliminated in the consolidated financial statements of an investment entity, according to specific regulation.

Section III
Qualification Criteria for Hedge Accounting

Art. 54. Hedge relationships qualify for hedge accounting if they are:

I - constituted only by hedge instruments and hedged items provided in arts. 52 and 53;

II - formally designated and documented from the beginning of the hedge relationship; and

III - effective.

§ 1º Hedge relationships are considered effective if they cumulatively observe the following requirements:

I - the economic relationship between the hedged item and the hedge instrument is provable;

II - the credit risk effect is not predominant in the value variations resulting from this economic relationship; and

III - the hedge ratio, measured by the relationship between the quantity of the hedge instrument and the quantity of the hedged item in terms of their relative weighting, meets the protection level defined in the institution's risk management strategy.

§ 2º For the analysis of effectiveness requirements, a qualitative assessment is permitted when the critical terms of the hedge instrument and the hedged item, the nominal value, the maturity, and the underlying risk are identical or closely aligned.

§ 3º The documentation provided in item II of the main text must contain:

I - the objective and risk management strategy of the institution for hedge accounting;

II - the identification of the hedge instrument, the hedged item, and the nature of the risk being protected;

III - the prospective analysis of compliance with hedge effectiveness requirements and sources of hedge ineffectiveness; and

IV - the value of the hedge ratio and the method used for its determination.

§ 4º The institutions mentioned in item I of the main text of art. 1 must rebalance the hedge relationship, adjusting the designated quantities of the hedged item or the hedge instrument, in order to maintain a hedge ratio that meets the effectiveness requirements if, and only in this case, the hedge relationship ceases to meet the effectiveness requirement regarding the hedge ratio, but the risk management objective of this relationship remains the same.

§ 5º The institutions mentioned in item I of the main text of art. 1 must reevaluate the effectiveness of the hedge, at a minimum, monthly and whenever there are indications of circumstances affecting its effectiveness.

§ 6º The replacement or renewal of the hedge instrument, if in consonance with the previously documented risk management objective, does not imply disqualification of the hedge relationship.

Section IV
Classification of Hedge Operations

Art. 55. Hedge operations must be classified into one of the following categories:

I - fair value hedge: a relationship that aims to protect the institution from the effects of changes in the fair value of an asset, liability, firm commitment not yet recognized as an asset or liability, or a component of any of these items, which is attributable to a specific risk and may affect the result or other comprehensive income;

II - cash flow hedge: a relationship that aims to protect the institution from the variability in cash flows attributable to a specific risk associated with the entirety or a component of an asset or liability or a highly probable forecast transaction that may affect the result; or

III - net investment hedge in foreign operations: a relationship that aims to protect the institution, in whole or in part, from risks arising from exposure to foreign exchange variation of a net investment in foreign operations whose functional currency, as defined in specific regulation, is different from the national currency.

Sole paragraph. Institutions mentioned in item I of the main text of art. 1 are authorized to classify a firm commitment not yet recognized as an asset or liability in the cash flow hedge category when the protected risk is foreign exchange.

Section V
Hedge Accounting

Art. 56. Subject to the qualification criteria, the fair value hedge must be recognized, from the date of designation, as follows:

I - the gain or loss on the hedge instrument must be recognized in the result; and

II - the gain or loss on the hedged item must adjust its book value to the result.

§ 1º If the hedged item is a firm commitment not yet recognized as an asset or liability, the gain or loss on this item must be recorded in equity accounts to the result.

§ 2º When the firm commitment hedged is recognized as an asset or liability, the gain or loss mentioned in § 1º must compose its acquisition, issuance, or origination cost.

§ 3º If the hedged item is an equity instrument of another entity designated at initial recognition in the fair value through other comprehensive income category, the gain or loss on the hedge instrument and the hedged item must be recorded in other comprehensive income, a record that must be maintained even in the case of discontinuation of the hedge relationship.

§ 4º In the case of discontinuation of a fair value hedge relationship whose hedged item is a financial instrument measured at amortized cost, the gain or loss mentioned in item II of the main text must be amortized in the result as follows:

I - proportionally, according to the remaining term of the hedged item, using the effective interest rate, which must be recalculated on the date amortization begins; or

II - in full, upon derecognition of the hedged item.

Art. 57. Subject to the qualification criteria, cash flow hedge operations must be recognized, from the date of designation, as follows:

I - the portion of gain or loss on the hedge instrument corresponding to effective protection must be recognized to the account highlighted in equity by the net value of the tax effects; and

II - any remaining gain or loss on the hedge instrument, corresponding to the ineffectiveness of the protection, must be recognized to the appropriate revenue or expense account, in the result of the period.

§ 1º The book value of the hedged item must not be altered due to hedge accounting.

§ 2º The portion of effective protection is considered the lower value, in absolute terms, between:

I - the accumulated gain or loss on the hedge instrument since the designation of the hedge relationship; and

II - the accumulated variation in the fair value of the hedged item, determined by the present value of the accumulated alteration in future expected protected cash flows, since the designation of the hedge relationship.

Art. 58. The accumulated value in the highlighted equity account regarding cash flow hedge operations must:

I - be reclassified to the result in the same periods in which the future expected cash flows of the hedged item affect the result;

II - adjust the initial accounting recognition of a non-financial asset or non-financial liability resulting from a highly probable forecast transaction; and

III - be recorded in equity accounts, if a highly probable forecast transaction becomes a firm commitment not yet recognized as an asset or liability, to which the criteria for fair value hedge accounting apply in accordance with art. 56.

§ 1º The value mentioned in the main text must be recognized immediately in the result of the period if it represents a loss whose total or partial recovery is not expected.

§ 2º In the case of discontinuation of the cash flow hedge, the accumulated value in the highlighted equity account must:

I - remain recorded in equity, if it is still expected that the future protected cash flows will occur, and must be reclassified to the result upon their actual occurrence, except when total or partial recovery of the loss mentioned in § 1º is not expected; and

II - be immediately reclassified to the result, if the occurrence of the future protected cash flows is no longer expected.

Art. 59. Subject to the qualification criteria, net investment hedge in foreign operations must be recognized, from the date of designation, in the following manner:

I - the portion of gain or loss in the hedge instrument corresponding to effective hedging must be recognized in offset to the account highlighted in equity at the net value of tax effects; and

II - any remaining gain or loss in the hedge instrument, corresponding to hedging ineffectiveness, must be recognized in offset to the appropriate revenue or expense account, in the period result.

§ 1º The accumulated value recognized in the account highlighted in equity, pursuant to item I of the caput, must be reclassified to the result, in the corresponding proportion, upon total or partial alienation of the operation abroad.

§ 2º For the purposes of item I of the caput, the concept of effective hedging portion set forth in § 2º of art. 57 applies.

Art. 60. The institutions mentioned in item I of the caput of art. 1 must discontinue hedge accounting, prospectively, only when the hedging relationship ceases to meet the qualification criteria set forth in art. 54, and voluntary discontinuation is prohibited.

Sole paragraph. The discontinuation of hedge accounting may be total or partial.

Section V
Fair Value Hedge of Interest Rate Exposure of a Portfolio of Financial Assets or Liabilities

Art. 61. It is optional for the institutions mentioned in item I of the caput of art. 1 to recognize fair value hedge of interest rate exposure of a portfolio of financial assets or liabilities.

§ 1º For the purposes of the caput, it is permitted to designate as the hedged item part of the portfolio of financial assets or financial liabilities that share the risk being protected.

§ 2º The designation of the hedged item referred to in § 1º is permitted in monetary value terms, instead of individual assets or liabilities.

§ 3º The portfolio referred to in the caput may consist only of financial assets, only of financial liabilities, or of financial assets and liabilities.

Art. 62. Only financial derivative instruments, in their entirety or a proportion of their value, may be designated as fair value hedge instruments of the interest rate exposure referred to in this Section, except for embedded derivatives in hybrid contracts whose main component is a financial asset, observing the provisions of §§ 4º and 5º of art. 52.

§ 1º The hedge instrument mentioned in the caput may be a single derivative or a portfolio of derivatives containing exposure to interest rate risk.

§ 2º The designation of the hedge instrument must be made for its entire contractual term.

Art. 63. Meeting the qualification criteria set forth in Section III of this Chapter, fair value hedge operations of interest rate exposure of a portfolio of financial assets or liabilities must be recognized, from the date of designation, as set forth in art. 56, noting that the gain or loss on the hedged item must be recorded in a highlighted item of assets or liabilities, as applicable.

Sole paragraph. The balance of the items mentioned in the caput must be written off in proportion as the financial assets or liabilities are derecognized and must be presented, for disclosure purposes, together with the corresponding financial assets or liabilities.

Art. 64. The institutions mentioned in item I of the caput of art. 1 must discontinue hedge accounting, prospectively, when the hedging relationship ceases to meet the qualification criteria set forth in Section III of this Chapter.

Sole paragraph. Exclusively for the fair value hedge of interest rate exposure of a portfolio of financial assets or liabilities referred to in this Section, voluntary revocation of the hedging relationship is permitted.

CHAPTER V
DISCLOSURE OF INFORMATION ON FINANCIAL INSTRUMENTS

Art. 65. The institutions mentioned in item I of the caput of art. 1 must disclose, in notes to the financial statements, the information necessary for users to assess:

I - the relevance of financial instruments to their financial position and performance; and

II - the nature and relevance of risks resulting from financial instruments to which the institution is exposed during and at the end of the accounting period.

Art. 66. For the purposes of art. 65, the institutions mentioned in item I of the caput of art. 1 must disclose, at a minimum:

I - the business models defined for each relevant class of financial instruments and their effects on their financial position and performance;

II - the carrying amount of assets and financial liabilities classified in each of the following categories:

a) amortized cost;

b) fair value through profit or loss, segregating those designated upon initial recognition into this category; and

c) fair value through other comprehensive income, highlighting investments in equity instruments designated upon initial recognition into this category;

III - the effects of any reclassifications of financial instruments between the categories mentioned in item II on their financial position and performance;

IV - the risks associated with financial instruments to which the institution is exposed;

V - the carrying amount and the respective provision amount for losses associated with credit risk constituted for financial instruments;

VI - the policy and strategy for the use of hedge accounting for managing exposures resulting from specific risks to which the institution is exposed; and

VII - the description, by financial asset category, of the nature of risks and benefits to which the institution may remain exposed through the transfer of financial assets.

Sole paragraph. In disclosure by class of financial instrument, the institutions mentioned in item I of the caput of art. 1 must provide sufficient information to allow reconciliation with the items presented in the balance sheet.

TITLE III
ACCOUNTING PROCEDURES TO BE OBSERVED BY FINANCIAL INSTITUTIONS AND OTHER INSTITUTIONS AUTHORIZED TO OPERATE BY THE CENTRAL BANK OF BRAZIL

CHAPTER I
DEFINITION OF PAYMENT OF PRINCIPAL AND INTEREST

Art. 67. The contractual cash flows of a financial asset consist solely of payments of principal and interest on the principal amount if they are consistent with a basic lending arrangement, which has the following elements as the most significant for determining interest:

I - time value of money;

II - credit risk;

III - transaction costs;

IV - profit margin; and

V - other risks related to the loan.

§ 1º A financial asset is considered consistent with a basic lending arrangement when the elements set forth in the caput are observed, regardless of its denomination or legal form.

§ 2º For the purposes of the caput:

I - foreign currency must be considered, in the case of a transaction denominated or requiring settlement in a currency different from the national currency; and

II - the characteristics of contractual cash flows that:

a) have a null or insignificant effect on the contractual cash flows of the asset; or

b) affect the contractual cash flows of the asset only upon the occurrence of a very rare, abnormal, and unlikely event, must not be considered.

§ 3º The time value of money is characterized as the portion of interest corresponding to consideration solely for the passage of time, not considering risks and other costs.

§ 4º For the purposes of the caput, the cash flows of financial assets on which interest does not accrue are considered consistent with a basic lending arrangement, provided there is no component that generates volatility in contractual cash flows or exposure to risks inconsistent with a basic lending arrangement.

§ 5º Interest rates below market rates are considered an adequate estimate of the time value of money element, provided that:

I - they establish consideration broadly consistent with the passage of time; and

II - they do not introduce volatility in contractual cash flows or exposure to risks inconsistent with a basic lending arrangement.

§ 6º The cash flows of financial assets with foreign exchange variation clauses are considered solely payments of principal and interest on the principal amount if:

I - the financial asset is linked to a financial liability denominated in foreign currency; and

I - the financial asset is linked to a financial liability denominated in foreign currency or with a foreign exchange variation clause; and (Wording given, effective 1º/8/2024, by Resolution BCB No. 397, of 3/7/2024.)

II - the cash flows of the liability are considered solely payments of principal and interest on the principal amount in the currency in which it is denominated.

Art. 68. Cash flows generated by leveraged interest rates are not consistent with a basic lending arrangement.

§ 1º For the purposes of this Resolution, a leveraged interest rate is considered one that substantially increases the oscillation of cash flows of a financial instrument.

§ 2º In the case of credit operations and other operations with credit characteristics, cash flows generated by leveraged interest rates are considered consistent with a basic lending arrangement if, at the time of contracting, this rate is not significantly higher than the market interest rate for similar financial instruments, considering, at a minimum, payment and maturity terms, credit risk, and currency or index.

Art. 69. Cash flows associated with the receipt of underlying assets are considered solely payments of principal and interest if the institution proves compliance with the following conditions:

I - the contractual cash flows of the financial asset consist exclusively of payments of principal and interest on the principal amount;

II - the contractual cash flows of the underlying assets consist exclusively of payments of principal and interest on the principal amount; and

III - the credit risk of the financial asset is equal to or lower than the credit risk of the underlying assets.

Sole paragraph. For the purposes of the caput, underlying assets are the instruments that generate the cash flows of the financial asset.

Art. 70. In the case of financial instruments susceptible to modification in the time value of money element, the contractual cash flows of the financial asset consist solely of payments of principal and interest on the principal amount if the institution verifies, upon initial recognition, the non-existence of:

I - significant difference between the cash flows with the effect of the modification of the time value of money element and the cash flows without the effect of the modification of the time value of money element; and

II - other factors that may make future cash flows inconsistent with a basic lending arrangement.

Sole paragraph. In the verification referred to in the caput, the institution must:

I - use reasonably possible scenarios; and

II - consider the effect of the modification of the time value of money element in each accounting period and cumulatively over the life of the financial instrument.

Art. 71. In the existence of contractual terms that may alter the term or cash flows provided for the financial instrument, the institution must evaluate whether the altered cash flows consist solely of payments of principal and interest on the principal amount as set forth in art. 67.

§ 1º In the verification referred to in the caput, the institution must consider:

I - the variation in cash flows that would be generated before and after the alteration provided for in the contract; and

II - the nature of any contingent event that may modify the term or cash flows.

§ 2º For financial assets with contractual provisions allowing the debtor to settle the instrument early, the altered cash flows consist solely of payments of principal and interest on the principal amount if the early payment value represents the contractual nominal value plus accrued contractual interest and any additional reasonable consideration for early contract termination.

CHAPTER II
EFFECTIVE INTEREST RATE CALCULATION METHODOLOGY

Art. 72. The effective interest rate of financial instruments must be determined by the rate that equalizes the present value of all receipts and payments over the contractual term of the financial asset or liability to its gross carrying amount.

§ 1º The provisions of the caput do not apply to the recognition of revenues and expenses related to transaction costs of credit operations and other operations with credit granting characteristics classified in the amortized cost category, for which the institution opts to use the differentiated methodology set forth in art. 75.

§ 2º The institution that uses the option referred to in § 1º must apply the methodology set forth in art. 75 consistently for all credit operations and other operations with credit granting characteristics.

Art. 73. In calculating the gross carrying amount of the financial instrument, the institution must make the following adjustments upon initial recognition:

I - add transaction costs attributable individually to the operation and deduct any amounts received in the acquisition or origination of the instrument, in the case of financial assets; and

II - deduct transaction costs attributable individually to the operation and add amounts related to any payments made in the issuance of the instrument, in the case of financial liabilities.

§ 1º The transaction costs, amounts received, and payments made attributable individually to the operation mentioned in the caput include:

I - revenues received by the institution related to the acquisition or origination of the financial asset;

II - valuation fees for the financial situation and credit risk of the counterparty for each specific instrument;

III - costs of evaluating and registering guarantees linked to each financial instrument;

IV - document processing and transaction closing costs;

V - origination costs paid in the issuance of financial assets and liabilities;

VI - transaction costs with fees and commissions paid to agents, consultants, brokers, and resellers; and

VII - other transaction costs attributable individually to the operation.

§ 2º Costs incurred in the acquisition, origination, or issuance of the instrument that cannot be calculated and controlled individually, without allocation, throughout the entire term of the operation, must be recognized as period expense when incurred and cannot compose the gross carrying amount of the instrument.

§ 3º Recognition in the period result of transaction costs and amounts received in the acquisition or origination of the instrument considered immaterial is optional, as set forth in art. 13, § 2º, of Resolution CMN No. 4.966, of November 25, 2021, and in art. 13, § 2º, of this Resolution.

Art. 74. In the case of financial instruments where the interest rate is not pre-fixed, the effective interest rate must be defined considering, at a minimum, at the time of interim and annual statements, the current value of the variable component of the contractual interest rate on the date to which the interim or annual statement refers.

Art. 75. The institutions mentioned in item II of the caput of art. 1 may opt to use a differentiated methodology for the purposes of recognizing revenues and expenses related to transaction costs by the effective interest rate of credit operations and other operations with credit granting characteristics classified in the amortized cost category.

§ 1º The differentiated methodology referred to in the caput consists of:

I - appropriation of revenues in the period result, pro rata temporis, at a minimum, at the time of interim and annual statements, considering the original contractual interest rate; and

II - appropriation of revenues and expenses related to transaction costs and other amounts received in the origination or issuance of the financial instrument in a linear or proportional manner to contractual revenues, according to contract characteristics.

§ 2º In the case of operations referred to in the caput that are subject to restructuring, the institutions mentioned in item II of the caput of art. 1 must:

I - write off, in offset to the result, revenues and expenses not yet appropriated related to transaction costs and other amounts received in the origination or issuance of the financial instrument referring to the original operation;

II - measure the restructured operation by the carrying amount of contractual cash flows discounted by the originally contracted interest rate; and

III - recognize revenues and expenses of restructured operations as set forth in § 1º.

§ 3º The methodology referred to in the caput:

I - does not apply to financial liabilities; and

II - cannot be used for the purposes of the following provisions:

a) item III of § 4º of art. 40 of Resolution CMN No. 4.966, of 2021;

b) item III of § 3º of art. 51 of Resolution CMN No. 4.966, of 2021;

c) item III of § 4º of art. 40 of this Resolution; and

d) item III of § 3º of art. 51 of this Resolution.

§ 4º The institution that opts for the methodology referred to in the caput must use it in the appropriation of revenues and expenses related to transaction costs, individually, for all credit operations and other operations with credit granting characteristics.

§ 5º The value of revenues and charges referred to in items I and II of § 1º, even if appropriated separately, must compose the gross carrying amount of the instrument for the purposes of calculating expected loss, as set forth in art. 45 of Resolution CMN No. 4.966, of 2021, and in art. 45 of this Resolution.

§ 6º When the financial asset is characterized as an asset with credit recovery problems, the institution must cease recognition of the revenues and expenses described in items I and II of § 1º.

§ 7º When financial instruments are written off, total or partial, the financial institution must proportionally appropriate the values referring to the revenues and expenses referred to in items I and II of § 1º.

CHAPTER III
PROVISION FOR LOSSES ASSOCIATED WITH CREDIT RISK

Section I
Levels of Provision for Expected Losses

Art. 76. The institutions mentioned in item II of the caput of art. 1 must observe the provision levels established by this Resolution for incurred losses associated with credit risk for non-performing financial assets, without prejudice to the institution's responsibility for constituting provisions in amounts sufficient to cover the total expected loss in the realization of these assets, as set forth in Chapter IV of Resolution CMN No. 4.966, of 2021, and in Chapter III of Title II of this Resolution.

§ 1º The provision level for the operations referred to in the caput must correspond to the value resulting from the application of the percentages defined in Annex I, observing the delay periods and portfolios defined by this Resolution, on the gross carrying amount of the asset.

§ 2º For the purposes of this Resolution, it is considered:

I - non-performing the asset with a delay greater than 90 (ninety) days regarding the payment of principal or charges; and

II - incurred loss a component of the expected loss.

Art. 77. In the case of financial assets whose counterparty is a legal entity in bankruptcy proceedings, the provision for incurred losses associated with credit risk must correspond, from the date of bankruptcy decree, to 100% (one hundred percent) of the gross carrying amount of the asset.

Art. 78. Institutions that, according to current regulation, adopt the simplified methodology for calculating provision for expected losses associated with credit risk, without prejudice to the institution's responsibility for constituting provisions in amounts sufficient to cover the total expected loss in the realization of credits, as set forth in Subsection II of Section IV of Chapter IV of Resolution CMN No. 4.966, of 2021, and in Subsection II of Section IV of Chapter III of Title II of this Resolution, must constitute, complementarily to the provision for incurred losses referred to in art. 76, an additional provision for expected losses associated with credit risk for:

I - credit operations;

II - operations with credit characteristics;

III - financial leasing operations;

IV - amounts receivable related to payment transactions with end users; and

V - other financial assets originated as a result of renegotiation of the operations referred to in items I to III.

V - other financial assets originated as a result of renegotiation of the operations referred to in items I to IV. (Wording given, effective 1º/8/2024, by Resolution BCB No. 397, of 3/7/2024.)

§ 1º The additional provision referred to in the caput must correspond to the value resulting from:

I - the application of the percentages defined in Annex II, observing the delay periods and portfolios defined by this Resolution, on the gross carrying amount of operations not characterized as assets with credit recovery problems;

II - the application of the following percentages on the gross carrying amount of operations characterized as assets with credit recovery problems, non-performing:

a) Portfolio C1: 10.0% (ten percent);

b) Portfolio C2: 33.4% (thirty-three and four-tenths percent);

c) Portfolio C3: 48.7% (forty-eight and seven-tenths percent);

d) Portfolio C4: 39.5% (thirty-nine and five-tenths percent); and

e) Portfolio C5: 53.4% (fifty-three and four-tenths percent); and

III - the application of the following percentages on the gross carrying amount of non-performing operations:

a) Portfolio C1: 4.5% (four and five-tenths percent);

b) Portfolio C2: 3.4% (three and four-tenths percent);

c) Portfolio C3: 3.7% (three and seven-tenths percent);

d) Portfolio C4: 4.5% (four and five-tenths percent); and

e) Portfolio C5: 3.4% (three and four-tenths percent).

§ 2º The total amount of the provision for expected losses associated with credit risk must correspond, at a maximum, to 100% (one hundred percent) of the gross carrying amount of the operation.

§ 3º The following are subject to the constitution of the additional provision referred to in this article: the institutions mentioned in item II of the caput of art. 1:

I - whose internal models and systems for measuring and classifying credit risk, internal controls, and risk management are not compatible with the nature of the operations, the complexity of the products, and the exposure to credit risk; or

II - which fail to demonstrate compliance with the provisions of Art. 84.

§ 4º The provisions of § 3º do not exempt the institution from applying the complete methodology for calculating the provision for expected losses associated with credit risk.

§ 5º The provisions of this article do not apply to credit operations carried out within the scope of federal programs aimed at addressing economic crises, whose credit risk is partially or fully assumed by the Union, directly or through a guarantee fund or a financial institution controlled by it. (Included, effective 1/8/2024, by Resolution BCB No. 397, of 3/7/2024.)

§ 6º The provisions of item I of § 1º do not apply to personal credit operations with payroll deduction, without delay or with a delay of up to fourteen days, for which the institutions mentioned in the caput must constitute an additional provision of 0.5% (five tenths of one percent) of the gross book value of the operation. (Included, effective 1/8/2024, by Resolution BCB No. 397, of 3/7/2024.)

Art. 79. The institutions mentioned in item II of the caput of Art. 1º must register separately:

I - the incurred loss provision calculated in accordance with Arts. 76 and 77;

II - the additional provision for expected loss referred to in Art. 78, in the case of institutions that adopt the simplified methodology for calculating the provision for expected losses associated with credit risk; and

III - the portion of the expected loss calculated by the institution in accordance with the provisions of CMN Resolution No. 4.966, of 2021, and Chapter III of Title II of this Resolution that exceeds the sum of the provision levels referred to in items I and II.

Art. 80. The provision levels referred to in this Section must be reviewed, at least monthly, according to the criteria established by this Resolution.

Art. 80. The provision levels referred to in this Section must be: (Redaction given, effective 1/8/2024, by Resolution BCB No. 397, of 3/7/2024.)

I - observed individually by financial asset; (Included, effective 1/8/2024, by Resolution BCB No. 397, of 3/7/2024.)

II - reviewed, at least monthly, according to the criteria established by this Resolution. (Included, effective 1/8/2024, by Resolution BCB No. 397, of 3/7/2024.)

Section II
Of Financial Asset Portfolios

Art. 81. For the purposes of determining the levels of provision for expected losses associated with credit risk referred to in Arts. 76 and 78, the institutions mentioned in item II of the caput of Art. 1º must segregate financial assets into the following portfolios:

I - Portfolio 1 (C1):

a) credits secured by fiduciary alienation of real estate; and

a) credits secured by fiduciary alienation of real estate; (Redaction given by Resolution BCB No. 571, of 28/5/2026.)

b) credits with surety guarantee from the Union, central governments of foreign jurisdictions and their respective central banks or multilateral organizations and multilateral development entities;

b) credits with surety guarantee from the Union, central governments of foreign jurisdictions and their respective central banks or multilateral organizations and multilateral development entities; and (Redaction given by Resolution BCB No. 571, of 28/5/2026.)

c) credits secured by a guarantee fund with majority participation by the Union; (Included by Resolution BCB No. 571, of 28/5/2026.)

II - Portfolio 2 (C2):

a) credit leasing credits, as provided in Law No. 6.099, of September 12, 1974;

b) credits secured by first-degree mortgage on residential real estate, by pledge of movable or immovable property, or by fiduciary alienation of movable property;

c) credits secured by demand, time, or savings deposits;

d) credits arising from financial assets issued by a federal public entity or by institutions authorized to operate by the Central Bank of Brazil;

e) credits with surety guarantee from institutions authorized to operate by the Central Bank of Brazil; and

f) credits covered by credit insurance issued by an entity that is not a related party of the institution, in accordance with Resolution No. 4.818, of May 29, 2020;

III - Portfolio 3 (C3):

a) credits arising from discounting of credit rights operations, including acquired commercial receivables and operations formalized as the acquisition of commercial receivables from a person not part of the National Financial System, in which the same person is jointly or subsidiarily liable for the receivables;

b) credits arising from operations secured by fiduciary assignment, pledge of credit rights, or pledge of credit rights; and

c) credits covered by credit insurance, real guarantee, or surety guarantee not covered by the hypotheses provided for in items I and II of the caput;

IV - Portfolio 4 (C4):

a) credits for working capital, advances on foreign exchange contracts, advances on delivered foreign exchange drafts, debentures, and other titles issued by private companies, without guarantees or collateral; and

b) rural credit operations without guarantees or collateral intended for investments; or

V - Portfolio 5 (C5):

a) personal credit operations, with or without payroll deduction, direct consumer credit, rural credit not covered by the hypotheses provided for in item IV of the caput, and revolving credit without guarantees or collateral;

b) credits without guarantees or collateral not covered by the hypotheses provided for in item IV of the caput; and

c) credits arising from commercial operations and other operations with characteristics of credit granting not covered by the hypotheses provided for in items I to IV of the caput.

§ 1º If the financial asset fits into more than one of the portfolios defined in the caput because it has more than one guarantee or collateral, the portfolio resulting in the lower provision value for non-performing assets for less than one month must be considered, without proportionality.

§ 2º For the purposes of the segregation referred to in the caput, if the institution holds more than one mortgage relative to the mortgaged property, the mortgage of the highest degree must be considered.

§ 3º In case of substitution of the guarantee or collateral, or if a guarantee or collateral is added to the financial asset, the institution must review the portfolio in which the asset was classified considering the new guarantees, and if there is a change in this classification, recalculate the respective provision level on the date of the first subsequent balance sheet or interim statement.

Section III
Of Parameters for Calculating Expected Losses

(Section III included, effective 1/8/2024, by Resolution BCB No. 397, of 3/7/2024.)

Art. 81-A. The institutions mentioned in the art. 1º, caput, that use the complete methodology for calculating expected losses associated with credit risk must, in the assessment of expected loss referred to in Art. 40 of CMN Resolution No. 4.966, of November 25, 2021, and Art. 40 of this Resolution, individually estimate the following parameters, in percentage terms: (Included, effective 1/8/2024, by Resolution BCB No. 397, of 3/7/2024.)

I - the probability of the instrument being characterized as an asset with credit recovery problems; and (Included, effective 1/8/2024, by Resolution BCB No. 397, of 3/7/2024.)

II - the expectation of recovery of the financial instrument. (Included, effective 1/8/2024, by Resolution BCB No. 397, of 3/7/2024.)

Sole Paragraph. The estimation of the parameters referred to in the caput must be done independently of the calculation of the value of the calculation base defined in Art. 45 of CMN Resolution No. 4.966, of November 25, 2021, and in Art. 45 of this Resolution. (Included, effective 1/8/2024, by Resolution BCB No. 397, of 3/7/2024.)

CHAPTER IV
OF THE AUTHORIZATION TO USE THE COMPLETE METHODOLOGY FOR CALCULATING THE PROVISION FOR EXPECTED LOSSES ASSOCIATED WITH CREDIT RISK

Art. 82. The institutions mentioned in Art. 50, § 1º, of CMN Resolution No. 4.966, of 2021, or in Art. 50, § 1º, of this Resolution may, from the date of entry into force of this Resolution, request authorization to use the complete methodology for assessing expected loss and calculating and constituting the provision for expected losses associated with credit risk.

§ 1º For the purposes of this Title, complete methodology is considered to be the methodology referred to in Sections I to III of Chapter IV of CMN Resolution No. 4.966, of 2021, and Sections I to III of Chapter III of Title II of this Resolution.

§ 2º The request for the authorization referred to in the caput must:

I - be filed with the Central Bank of Brazil according to procedures to be defined by the units linked to the Supervision area;

II - cover all institutions part of the prudential conglomerate or, in the case of credit cooperatives, all credit cooperatives of the cooperative system classified in Segment 4 (S4); and

II - cover all institutions part of the prudential conglomerate or, in the case of credit cooperatives, all credit cooperatives of the cooperative system; and (Redaction given, effective 1/8/2024, by Resolution BCB No. 397, of 3/7/2024.)

III - be carried out:

a) by the lead institution, in the case of a prudential conglomerate; or

b) by the confederation of central cooperatives, in three-level systems, and by the central credit cooperative, in two-level systems, in the case of a cooperative system.

Art. 83. The authorization referred to in Art. 82 will not be granted to an institution that has:

I - a similar authorization request denied less than 2 (two) years before the new request;

II - a previously granted authorization cancelled less than 2 (two) years ago;

III - a sanctioning administrative process initiated less than 5 (five) years ago related to credit risk management;

IV - a commitment term open or closed less than 2 (two) years ago related to credit risk management;

V - an appearance term open or closed less than 2 (two) years ago related to credit risk management; or

VI - disqualification from the minimum requirements for Reference Equity (PR), Level I, or Core Capital less than 3 (three) years ago.

Art. 84. The authorization referred to in Art. 82 is conditioned to the institutions demonstrating that:

I - it has used, for at least 2 (two) years, a method of estimating expected loss for the purpose of constituting a provision for expected losses associated with credit risk, based on internal models, in compliance with the requirements set forth in Chapter IV of CMN Resolution No. 4.966, of 2021, and in Chapter III of Title II of this Resolution;

II - it has a sufficient quantity of professionally qualified personnel in the business areas involved in the development and updating of the models referred to in item I; and

III - it employs technological infrastructure compatible with the nature of the operations, the complexity of the products, and the exposure to credit risk.

§ 1º The models referred to in item I of the caput must be:

I - validated independently of the unit responsible for their development and of the business units;

II - evaluated by the institution's internal audit; and

III - used for the purposes of credit risk management.

§ 2º The provisions of item II of the caput do not apply to institutions that use models developed by third parties.

§ 3º The non-observance of the provisions of Art. 83 and this article by a credit cooperative of the cooperative system does not prevent the granting of the authorization referred to in Art. 82, provided that the asset of the individual institution is not relevant in relation to the sum of the assets of the institutions that make up the system.

CHAPTER V
OF THE DISCLOSURE OF FINANCIAL INSTRUMENTS

Art. 85. The institutions mentioned in item II of the caput of Art. 1º must disclose, in the financial statements or in the notes to the financial statements, complete and relevant quantitative and qualitative information that allows the user to evaluate:

I - the use of financial instruments, their effects on the period's result and on other comprehensive income;

II - the significance of financial instruments for the equity position and financial position and for performance analysis; and

III - the nature and extent of the risks to which the financial instruments or the institution are exposed and how these risks are managed.

§ 1º Qualitative disclosures must clearly and precisely describe the objectives, policies, and processes of management for managing the risks mentioned in item III of the caput.

§ 2º Quantitative disclosures must provide numerical information on the extent to which the institution is exposed to risks of financial instruments.

Art. 86. The extent of disclosure must be proportional to the volume and complexity of the financial instruments used by the institution and to the respective risks to which it is exposed.

Art. 87. The institution must evaluate the degree of detail necessary, the emphasis on different aspects, and the appropriate level of aggregation or disaggregation in the disclosure of information, in a way that allows adequate analysis by the user of the financial statements.

Art. 88. The institution must disclose sufficient information to allow the reconciliation of the notes to the financial statements with the items presented in the financial statements.

Art. 89. The information disclosed in the notes to the financial statements must be consistent with that presented in another statement or report disclosed by the institution on the same base date.

Art. 90. Among other information considered relevant by the institution, the following information must be disclosed, when applicable:

I - the main accounting policies used in the measurement of financial instruments;

II - the business models defined for each relevant class of financial instruments and their effects on the equity and financial position and on the performance of the institution;

III - the book value of assets and financial liabilities classified in each of the following categories:

a) amortized cost;

b) fair value through profit or loss, segregating financial instruments designated upon initial recognition for this category; and

c) fair value through other comprehensive income, highlighting investments in equity instruments designated upon initial recognition for this category;

IV - financial assets designated at fair value through profit or loss, highlighting:

a) the nature of the instrument; and

b) the reason why this classification eliminates or significantly reduces a measurement or recognition accounting inconsistency in another category, if applicable;

V - equity instruments of another entity designated at fair value through other comprehensive income upon initial recognition, highlighting:

a) the reasons for the designation;

b) the transfers of accumulated gain or loss within equity during the period and their reasons; and

c) in the case of derecognition:

1. the reasons for derecognition;

2. the fair value on the date of derecognition; and

3. the accumulated gain or loss in other comprehensive income;

VI - reclassifications of financial instruments, including:

a) the detailed explanation of the change in the business model;

b) the qualitative description of its effect on the entity's accounting statements;

c) the value reclassified within and outside each category; and

d) the gain or loss in fair value that would have been recognized in profit or loss or in other comprehensive income, had the asset not been reclassified;

VII - the value of derivative financial instruments, highlighting:

a) the values grouped by instrument;

b) the reference index;

c) the types of counterparty;

d) the maturity bands;

e) the market reference values;

f) the value associated with credit risk received and transferred, in the period and accumulated, in the case of credit derivatives; and

g) the value and type of margins given as collateral;

VIII - items of revenue, expense, gain, and loss, including:

a) revenues and expenses related to transaction costs of financial instruments using the effective interest rate or, in the case of instruments classified in the fair value through profit or loss category, the contractual interest rate;

b) the expense for provision for expected losses associated with credit risk, by category and class of financial instrument;

c) the remuneration of capital of equity instruments designated at fair value through other comprehensive income;

d) the fair value adjustment of instruments classified in the fair value through profit or loss and fair value through other comprehensive income categories, segregated by class of instrument and by level of fair value hierarchy;

e) gains and losses recognized in profit or loss resulting from the derecognition of financial assets classified in the fair value through other comprehensive income category;

f) the portion of the variation in the fair value of a derivative financial liability resulting from changes in the institution's own credit risk recognized in other comprehensive income;

g) exchange rate variations of financial instruments, segregating those recognized in the period's profit or loss and in other comprehensive income; and

h) net gains or losses of financial instruments classified in each of the following categories:

1. amortized cost;

2. fair value through profit or loss, segregating financial instruments designated upon initial recognition for this category; and

3. fair value through other comprehensive income, segregating investments in equity instruments designated upon initial recognition for this category;

IX - renegotiated financial instruments, including those restructured, covering:

a) the amount of financial instruments derecognized and new instruments recognized, segregated by class, due to renegotiation not characterized as restructuring of financial instruments;

b) the percentage of restructured financial assets in relation to the total of renegotiated financial instruments, including those restructured; and

c) the net gain or loss recognized upon restructuring;

X - investments in associates, subsidiaries, and jointly controlled entities held for sale, in the form provided in Resolution No. 4.817, of May 29, 2020, including:

a) the expected period for alienation of the assets;

b) the effect of not applying the equity method; and

c) the fair value of the asset;

XI - operations for the transfer and sale of financial assets containing, at minimum, the following aspects relative to each classification category:

a) operations with substantial transfer of risks and benefits and operations without substantial transfer or retention of risks and benefits, for which control was transferred;

b) the positive or negative result calculated in the negotiation, identifying the nature and extent of risks associated with financial assets;

c) operations with substantial retention of risks and benefits:

1. the description of the nature and extent of risks and benefits to which the institution remains exposed; and

2. the book value of the financial asset and the obligation assumed; and

d) operations without substantial transfer or retention of risks and benefits, for which control was retained:

1. the description of the nature of risks and benefits to which the institution remains exposed; and

2. the total value of the financial asset, the value that the institution continues to recognize of the financial asset, and the book value of the obligation assumed;

XII - the book value and the respective amount of provision constituted for losses associated with credit risk of financial instruments grouped in classes and by stages, including information on instruments:

a) acquired or originated in the third stage;

b) reallocated:

1. to the first stage, due to the reduction of their credit risk, indicating those that were allocated in the third stage upon initial recognition;

2. to another stage, for ceasing to meet the criteria for characterization as an asset with credit recovery problems, segregating financial assets classified in the second and first stages;

3. to the second stage, due to a significant increase in credit risk; and

4. to the third stage, segregating financial assets that have been restructured;

c) allocated in the first stage with more than 30 (thirty) days of delay;

d) not allocated in the third stage due to having credit risk significantly lower than an instrument of the same counterparty characterized as an asset with credit recovery problems; and

e) with low credit risk in relation to the total portfolio;

XIII - financial assets with credit recovery problems, covering:

a) the criteria used to define restructured operations;

b) the expectation of recovery of financial assets with credit recovery problems;

c) revenues not recognized due to the asset being characterized as having credit recovery problems; and

d) the criteria used to decharacterize the instrument as an asset with credit recovery problems;

XIV - the measurement of expected losses associated with credit risk, by class, including:

a) the instruments for which the institution opts to measure the provision for expected losses associated with credit risk based on the probability that the financial instrument will be characterized as a credit-impaired asset over the instrument's expected life;

b) the methodology, assumptions, and information used;

c) the method used to incorporate future information, including macroeconomic data, in determining expected losses associated with credit risk;

d) significant changes in estimation techniques or assumptions occurring during the reporting period and their reasons; and

e) the impact of any guarantees or collateral;

XV - the treatment of instruments by portfolio, including:

a) the number of homogeneous groups, their respective classes, and their classification stages;

b) the criteria for defining retail operations; and

c) the risk concentration of credit operations by homogeneous groups and maturity bands;

XVI - financial assets written off due to losses, including:

a) the outstanding balance of written-off financial assets subject to collection activities; and

b) those that were subsequently renegotiated;

XVII - guarantees or collateral received from the counterparty due to non-compliance with agreed obligations;

XVIII - the policy and strategies for the use of hedge accounting, disclosing, at a minimum, by category of hedge operations:

a) the management of each risk, detailing the hedged items and risk components;

b) the description of designated hedge instruments and how they are used;

c) the determination of the economic relationship between the hedged item and the hedge instrument for the purpose of assessing effectiveness;

d) the method used to establish the hedge ratio;

e) the description of sources that may impair hedge effectiveness and affect the hedging relationship during the period of the relationship;

f) the carrying amount of hedge instruments, by type of instrument and segregating financial assets from financial liabilities;

g) the nominal values of hedge instruments, including quantities;

h) the gains or losses of the hedge instrument corresponding to the effective portion;

i) the change in the fair value of the hedge instrument used as the basis for recognizing hedge ineffectiveness of the period;

j) the hedge ineffectiveness recognized in profit or loss;

k) the following values regarding the hedged items, for fair value hedge operations and for fair value hedge operations of interest rate exposure of portfolios of financial assets or liabilities:

1. the carrying amount of the hedged item, separating financial assets, financial liabilities, and firm commitments;

2. the accumulated amount of fair value adjustments on the hedged item, separating financial assets, financial liabilities, and firm commitments; and

3. the accumulated amount of fair value adjustments on the hedged item measured at amortized cost remaining on the balance sheet in case of discontinuation of the hedging relationship;

l) the following values regarding the hedged items, for cash flow hedge operations and net investment in a foreign operation hedges:

1. the changes in the value of the hedged item used as the basis for recognizing hedge ineffectiveness of the period;

2. the remaining balances in the equity reserve account regarding discontinued cash flow hedges and net investment in a foreign operation hedges; and

3. the main highly probable forecast transactions subject to cash flow hedge, highlighting the deadlines for the expected financial impact;

m) the accumulated amount in the equity reserve account of cash flow hedge operations or net investment in a foreign operation reclassified to profit or loss as reclassification adjustments, by risk category and by type of hedge; and

n) the reasons, justified, for the voluntary revocation of the hedging relationship for fair value hedge operations of interest rate exposure of portfolios of financial assets or liabilities;

XIX - information related to the allocation of resources for application in rural credit, as provided for in specific regulation, disclosing at a minimum:

a) the total requirement, in absolute and percentage terms;

b) the instruments used for compliance purposes, segregated by class;

c) the direct and indirect costs of compliance with this requirement; and

d) any costs for non-compliance with the requirements; and

XX - the extent of the risks to which the institution is exposed at the reporting date of the financial statements, including credit, market, and liquidity risk, but not limited to them, disclosing at a minimum:

a) the exposure and origin of the risks;

b) the objectives, policies, and processes for risk management, including for derivative instruments;

c) the methods used for risk measurement;

d) a summary of quantitative data on risk exposure;

e) the description of how risk concentrations are determined; and

f) the amount of risk exposure associated with each risk concentration.

§ 1º The information referred to in the caput that is already presented in another document may be incorporated by cross-reference, provided that the referenced document:

I - is publicly accessible via the World Wide Web; and

II - refers to the same period and the same set of institutions to which the financial statements refer.

§ 2º The presentation of information considered immaterial in the financial statements and their respective explanatory notes is waived.

Art. 91. For disclosure purposes, information must be made available as follows:

I - when disclosure by class of financial instruments is required, these must be grouped according to their characteristics; and

II - when disclosure by categories is required, financial instruments must be grouped into:

a) amortized cost;

b) fair value through profit or loss; or

c) fair value through other comprehensive income.

TITLE IV
GENERAL, TRANSITIONAL AND FINAL PROVISIONS

CHAPTER I
GENERAL PROVISIONS

Art. 92. The institutions mentioned in item I of the caput of Art. 1 must keep available to the Central Bank of Brazil:

I - for a minimum period of 5 (five) years, or for a longer period due to legal or regulatory determination, the documents that clearly and objectively evidence the criteria for:

a) definition of business models, classification, eventual reclassification, measurement, and accounting recognition of financial instruments; and

b) classification and accounting recording of sale or transfer operations of financial assets;

II - the information and other documents that indicate:

a) the criteria used for allocating financial instruments to the stages referred to in Art. 37, if applicable;

b) the carrying amount of financial assets, broken down into:

1. amortized cost;

2. provision for expected losses associated with credit risk, if applicable; and

3. fair value adjustments, if applicable;

c) the definition of homogeneous risk groups and their respective compositions;

d) the criteria adopted for writing off financial assets as referred to in Art. 49;

e) the criteria adopted for defining renegotiation and restructuring of financial instruments; and

f) the methodology and results of internal assessments and goodness-of-fit tests of the parameters of the models used for calculating expected loss; and

III - historical data produced from the effective date of this Resolution, relating, at a minimum, to the last 5 (five) years regarding:

a) the credit risk assessment of the financial instrument, including initial risk assessment, the date of each reassessment, the methodology, and the main data used;

b) the provision for expected losses associated with credit risk, including the initial provision and its changes, the methodology, and the main data used in its calculation; and

c) recoveries by type of financial asset and guarantee, if applicable.

Art. 93. The Central Bank of Brazil may determine to the institutions mentioned in item I of the caput of Art. 1:

I - if it considers the classification performed by the institution inadequate, the characterization of financial instruments as credit-impaired financial assets;

II - if it finds impropriety or inconsistency in the classification and accounting recording processes of sale or transfer operations of assets, the reclassification, recording, or write-off of these operations and the consequent recognition of effects in the financial statements;

III - if it identifies inadequacy or insufficiency in the measurement of expected loss or in the recognition of the provision for expected losses associated with credit risk:

a) the reallocation of the financial instrument into stages;

b) the alteration of the criteria for establishing and recording the provision for expected losses associated with credit risk;

c) the establishment of a supplementary provision, considering the provisioning level determined by the Central Bank of Brazil in its monitoring and supervision activities; and

d) the redefinition of homogeneous risk groups and their respective compositions; and

IV - if it identifies inadequacy in the designation or accounting recognition, the reclassification or discontinuation of accounting recognition of hedge operations.

CHAPTER II
TRANSITIONAL PROVISIONS

Section I
Provisions Applicable to Securities Brokers, Securities Distributors, Currency Brokers, Consortium Administrators, and Payment Institutions

Art. 94. The accounting criteria established by this Resolution for the institutions mentioned in item I of the caput of Art. 1 must be applied prospectively from the date of its entry into force.

Sole Paragraph. The effects of adjustments resulting from the application of the accounting criteria established by this Resolution must be recorded in offset to the accumulated profits or losses account for the net value of the tax effects.

Art. 95. The institutions mentioned in item I of the caput of Art. 1 may carry out, in January 2025, for the financial instruments comprising their portfolio on that date:

I - the designation referred to in Art. 6; and

II - the option referred to in Art. 7.

Art. 95-A. The use of the renegotiated effective interest rate for the calculation of the present value of the contractual cash flows of the renegotiated instruments referred to in Art. 22 is permitted until December 31, 2026. (Included, effective August 1, 2024, by Resolution BCB No. 397 of July 3, 2024.)

Art. 96. It is optional for the institutions mentioned in item I of the caput of Art. 1 to allocate the financial instruments held in their portfolios on the date of entry into force of this Resolution into the first stage, except:

I - financial instruments with a delay of more than 30 (thirty) days in the payment of principal or charges, which must be allocated to the second stage; and

II - financial instruments with credit impairment, which must be allocated to the third stage.

§ 1º For the purpose of assessing the occurrence of a significant increase in credit risk referred to in Art. 38, if the institution uses the option mentioned in the caput, the credit risk on the date of entry into force of this Resolution must be compared with the credit risk on the date of reassessment.

§ 2º For the purposes of the caput, allocation to the first stage is admitted for instruments with up to 60 (sixty) days of delay in the payment of principal or charges, in the presence of consistent and verifiable evidence, duly proven, that there has been no significant increase in credit risk compared to that assessed at initial recognition of the instrument.

Art. 97. The recording of written-off instruments as assets is prohibited, in observance of the provisions of the regulation in force before the date of entry into force of this Resolution, except when there is renegotiation of the instrument, observing the provisions of §§ 2, 3, and 4 of Art. 49.

Art. 97-A. For the purpose of characterizing a financial instrument as a credit-impaired asset referred to in Art. 3, the restructuring of a credit operation carried out in the period from May 1 to December 31, 2024, due to the economic consequences derived from climatic events in the state of Rio Grande do Sul, is not indicative that the respective obligation will not be fully honored under the agreed conditions, without the need to resort to guarantees or collateral, as provided in Art. 3, § 2, item II. (Included, effective August 1, 2024, by Resolution BCB No. 397 of July 3, 2024.)

§ 1º The provisions of the caput do not apply to operations: (Included, effective August 1, 2024, by Resolution BCB No. 397 of July 3, 2024.)

I - already characterized as problematic assets on the date of restructuring; or (Included, effective August 1, 2024, by Resolution BCB No. 397 of July 3, 2024.)

II - with evidence of the counterparty's inability to honor the obligation under the new agreed conditions. (Included, effective August 1, 2024, by Resolution BCB No. 397 of July 3, 2024.)

§ 2º The institution must keep available to the Central Bank of Brazil, for five years, the credit analysis documentation related to the restructurings referred to in the caput. (Included, effective August 1, 2024, by Resolution BCB No. 397 of July 3, 2024.)

Art. 97-B. The use of the complete methodology for calculating expected losses associated with credit risk is optional from the date of entry into force of this Resolution, for the institutions referred to in Art. 50, caput, whose classification in S3 is provided for, according to specific regulation, to produce effects in the year 2025. (Included, effective August 1, 2024, by Resolution BCB No. 397 of July 3, 2024.)

Art. 98. Hedge operations accounting-recognized by the institutions mentioned in item I of the caput of Art. 1 must be reclassified, on January 1, 2027, into the new categories.

Sole Paragraph. The institutions mentioned in item I of the caput of Art. 1 must discontinue the accounting recognition of hedge operations that do not meet the criteria established in this Resolution.

Art. 99. The redefinition of hedge operations accounting-recognized by the institutions mentioned in item I of the caput of Art. 1 on January 1, 2027, is optional, including regarding:

I - the designation of the hedge instrument and the hedged item, according to Sections I and II of Chapter IV of Title II, observing the provisions of Section III of Chapter IV of Title II; and

II - the classification of hedge operations, according to Section IV of Chapter IV of Title II.

Art. 100. The institutions mentioned in item I of the caput of Art. 1 are permitted to prepare and disclose consolidated financial statements in accordance with the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif), until the 2024 fiscal year, in addition to statements in the international accounting standard, as provided in Resolution BCB No. 2 of August 12, 2020.

Art. 100. The institutions mentioned in Art. 1, caput, item I, are permitted to prepare and disclose consolidated financial statements in accordance with the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif) until the 2027 fiscal year, in addition to statements in the international accounting standard, as provided in Resolution BCB No. 2 of August 12, 2020. (Redaction given, effective August 1, 2024, by Resolution BCB No. 397 of July 3, 2024.)

Sole Paragraph. The provisions of the caput also apply to statements relating to a period of less than one year.

Art. 101. The institutions mentioned in item I of the caput of Art. 1 must disclose in the explanatory notes to the financial statements of the 2024 fiscal year the estimated impacts of the implementation of the accounting regulation established by this Resolution on their results and financial position.

Art. 102. The institutions mentioned in item I of the caput of Art. 1 are exempt from presenting comparative financial statements for the periods of the year 2025 relative to previous periods.

Section II
Provisions Applicable to Financial Institutions and Other Institutions Authorized to Operate by the Central Bank of Brazil

Art. 103. The institutions mentioned in item II of the caput of Art. 1 must recognize revenues and expenses related to transaction costs by the effective interest rate, prospectively, for financial instruments contracted from the date of entry into force of this Resolution.

Art. 104. The institutions mentioned in item II of the caput of Art. 1 must disclose in the explanatory notes to the financial statements relating to the first semester and the fiscal year of 2025:

I - for each class of financial assets and financial liabilities:

a) the measurement category and its carrying amount, at the end of the previous fiscal year, according to the regulation in force at the time; and

b) the new measurement category and its carrying amount, according to the regulation in force;

II - for financial instruments previously measured at market value and which, due to the regulation in force, are classified in the amortized cost or fair value through other comprehensive income categories:

a) the market value, at the end of the previous fiscal year, according to the regulation in force at the time; and

b) the gains or losses that would have been recognized in profit or loss or in equity if the instruments had not been reclassified;

III - for financial instruments previously measured at market value in which gains and losses were recognized in profit or loss and which, due to the regulation in force, are classified in the amortized cost or fair value through other comprehensive income categories:

a) the effective interest rate determined on the date of initial application and the interest rate interval, segregated by instrument class; and

b) the interest revenue or expense recognized, segregated by instrument class;

IV - the method used to apply the new classification requirements to financial assets; and

V - the reasons for designating financial assets as measured at fair value through profit or loss on the date of initial application.

Sole Paragraph. The institution must carry out the disclosure in a manner that allows reconciliation between the previous classifications, the new categories, and the classes of financial instruments, according to the regulation in force.

Art. 105. The institutions mentioned in item II of the caput of Art. 1 must disclose information sufficient to allow reconciliation of the provision values, at the end of the previous fiscal year, according to the regulation in force at the time, and at the beginning of the current fiscal year, according to the regulation in force, in the initial application of the criteria for establishing the provision for expected losses associated with credit risk of financial instruments.

§ 1º The institution must evidence, for each category of financial asset, the total value of the operation and its risk classification, according to the previous regulation, when applicable.

§ 2º The provisions of the caput apply to all financial assets subject to provision for losses associated with credit risk in the manner provided for in Chapter IV of CMN Resolution No. 4,966 of 2021 and in Chapter III of Title II of this Resolution.

Art. 106. The institutions mentioned in item II of the caput of Art. 1 must disclose information that allows reconciliation of the categories, at the end of the previous fiscal year, according to the regulation in force at the time, and at the beginning of the current fiscal year, of hedge operations.

Sole Paragraph. The institution must evidence discontinued hedge operations that did not meet the criteria established in the regulation in force.

CHAPTER III
FINAL PROVISIONS

Art. 107. The following are revoked:

I - Circular No. 2,535 of January 19, 1995;

II - Circular No. 2,951 of November 11, 1999;

III - Circular No. 3,001 of August 24, 2000;

IV - Circular No. 3,233 of April 8, 2004;

V - Circular No. 3,252 of August 25, 2004;

VI - Circular No. 3,693 of December 20, 2013;

VII - Circular No. 3,722 of October 7, 2014;

VIII - Circular No. 3,738 of December 11, 2014;

IX - Circular No. 3,833 of May 17, 2017;

X - Resolution BCB No. 219 of March 30, 2022; and

XI - Resolution BCB No. 309 of March 28, 2023.

Art. 108. This Resolution enters into force:

I - on January 1, 2024, regarding:

a) Art. 24;

b) Arts. 100 and 101; and

c) items X and XI of Art. 107;

II - on January 1, 2027, regarding Chapter IV of Title II; and

III - on January 1, 2025, regarding the remaining provisions.

AILTON
DE AQUINO SANTOS
Deputy Director of Regulation

ANNEX I

Provision for incurred losses applicable to defaulted financial assets

Number of months of delay counted from the month of default	Portfolio
C1	C2	C3	C4	C5
Less than one month	5.5%	30.0%	45.0%	35.0%	50.0%
Equal to or greater than 1 and less than 2 months	10.0%	33.4%	48.7%	39.5%	53.4%
Equal to or greater than 2 and less than 3 months	14.5%	36.8%	52.4%	44.0%	56.8%
Equal to or greater than 3 and less than 4 months	19.0%	40.2%	56.1%	48.5%	60.2%
Equal to or greater than 4 and less than 5 months	23.5%	43.6%	59.8%	53.0%	63.6%
Equal to or greater than 5 and less than 6 months	28.0%	47.0%	63.5%	57.5%	67.0%
Equal to or greater than 6 and less than 7 months	32.5%	50.4%	67.2%	62.0%	70.4%
Equal to or greater than 7 and less than 8 months	37.0%	53.8%	70.9%	66.5%	73.8%
Equal to or greater than 8 and less than 9 months	41.5%	57.2%	74.6%	71.0%	77.2%
Equal to or greater than 9 and less than 10 months	46.0%	60.6%	78.3%	75.5%	80.6%
Equal to or greater than 10 and less than 11 months	50.5%	64.0%	82.0%	80.0%	84.0%
Equal to or greater than 11 and less than 12 months	55.0%	67.4%	85.7%	84.5%	87.4%
Equal to or greater than 12 and less than 13 months	59.5%	70.8%	89.4%	89.0%	90.8%
Equal to or greater than 13 and less than 14 months	64.0%	74.2%	93.1%	93.5%	94.2%
Equal to or greater than 14 and less than 15 months	68.5%	77.6%	96.8%	98.0%	97.6%
Equal to or greater than 15 and less than 16 months	73.0%	81.0%	100.0%	100.0%	100.0%
Equal to or greater than 16 and less than 17 months	77.5%	84.4%	100.0%	100.0%	100.0%
Equal to or greater than 17 and less than 18 months	82.0%	87.8%	100.0%	100.0%	100.0%
Equal to or greater than 18 and less than 19 months	86.5%	91.2%	100.0%	100.0%	100.0%
Equal to or greater than 19 and less than 20 months	91.0%	94.6%	100.0%	100.0%	100.0%
Equal to or greater than 20 and less than 21 months	95.5%	98.0%	100.0%	100.0%	100.0%
Equal to or greater than 21 months	100.0%	100.0%	100.0%	100.0%	100.0%

ANNEX II

Additional provision levels for expected loss

Delay period	Portfolio
C1	C2	C3	C4	C5
From zero to 14 days	1.4%	1.4%	1.9%	1.9%	1.9%
From 15 to 30 days	3.5%	3.5%	3.5%	3.5%	7.5%
From 31 to 60 days	4.5%	6%	13%	13%	15%
From 61 to 90 days	5%	17%	32%	32%	38%