RESOLUTION CMN NO. 4,966, OF NOVEMBER 25, 2021

Establishes the accounting concepts and criteria applicable to financial instruments, as well as for the designation and recognition of hedging relationships (hedge accounting) by financial institutions and other institutions authorized to operate by the Central Bank of Brazil.

The Central Bank of Brazil, in accordance with Article 9 of Law No. 4,595, of December 31, 1964, makes it public that the National Monetary Council, in a session held on November 25, 2021, based on Article 4, items VIII and XII, of the aforementioned Law, and taking into account the provisions of Article 61 of Law No. 11,941, of May 27, 2009,

RESOLVES:

CHAPTER I

OBJECT AND SCOPE OF APPLICATION

Art. 1. This Resolution establishes the accounting concepts and criteria to be observed by financial institutions and other institutions authorized to operate by the Central Bank of Brazil for:

I - classification, measurement, recognition, and derecognition of financial instruments;

II - establishment of provision for expected losses associated with the credit risk of the following financial instruments:

a) financial assets;

b) financial guarantees provided; and

c) credit commitments and credits to be disbursed that meet at least one of the following characteristics:

the commitment is not unconditionally and unilaterally cancellable by the institution;
the institution does not have the capacity to cancel, block, or suspend the contract or the disbursement of resources, or does not execute cancellation, blocking, or suspension in the normal daily management of the financial instrument; or
the institution does not have the capacity to monitor the financial instrument or the financial situation of the counterparty individually, allowing for immediate cancellation, blocking, or suspension of the commitment or disbursement of resources in the event of a reduction in the counterparty's financial capacity;

III - accounting designation and recognition of hedging relationships (hedge accounting); and

IV - disclosure of information about financial instruments.

§ 1. The provisions of this Resolution do not apply:

~~I - to consortium administrators and payment institutions, which must observe the regulations issued by the Central Bank of Brazil, in the exercise of their legal duties; and~~

I - to consortium administrators, payment institutions, securities brokerage firms, securities distribution companies, and currency brokerage firms, which must observe the regulations issued by the Central Bank of Brazil, in the exercise of their legal duties; and (Amended, effective October 1, 2023, by CMN Resolution No. 5,100, of August 24, 2023.)

II - to the following instruments, for which the criteria provided for in specific regulations must be observed:

a) 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 described in Art. 24;

b) employee benefits;

c) share-based payments; and

d) liabilities arising from contracts between the institution and clients.

§ 2. The accounting criteria and information disclosure criteria mentioned in items I and IV of the caput do not apply to the following instruments, which must observe specific regulations:

I - amounts receivable arising from leasing contracts; and

II - assets arising from contracts between the institution and clients, as defined in current regulations.

§ 3. The accounting criteria mentioned in item II 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, according to current regulations, except private bonds, credit operations, and other operations with characteristics of credit granting; and

III - derivative financial instruments.

CHAPTER II

DEFINITIONS

Art. 2. For the purposes of regulatory accounting of financial instruments, the following are considered:

I - financial asset:

a) cash;

b) an equity instrument of another entity;

c) a contractual right to:

receive cash or another financial asset from another entity; or
exchange financial assets or financial liabilities with another entity under conditions that are potentially favorable to the institution holding this right; or

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

a non-derivative financial instrument for which the entity is or may be obliged to receive a variable number of its own equity instruments; or
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: a purchase or sale contract closed for the exchange of a determined quantity of resources, at a determined price, on a determined future date or 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 institutions mentioned in Art. 1;

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

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

VII - credit to be disbursed: commitment to release already contracted credit;

VIII - amortized cost of a financial asset: the value by which the financial asset was initially recognized, in accordance with Arts. 12 and 13, increased by the value of revenues generated and decreased by the value of expenses eventually incurred, installments received, and the balance of the provision for expected losses associated with credit risk;

IX - amortized cost of a financial liability: the value by which the financial liability was initially recognized, in accordance with Arts. 12 and 13, increased by the value of charges incurred and decreased by the value of revenues eventually generated and installments 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 to be 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, commodity price, exchange rate, stock market 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 either party to the contract;

b) that requires no initial net investment or the initial net investment is small relative 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 similarly to an individual financial derivative instrument;

XIII - financial guarantee provided: 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 providing aval, suretyship, joint liability, or any other operation that represents a guarantee of the fulfillment of a third-party financial obligation;

XIV - financial instrument: a 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: a title or contract that evidences a residual interest in the assets of an entity or an investment fund after deducting all of its liabilities;

XVI - interest: consideration for the time value of money, for the credit risk associated with the outstanding principal balance over 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:

deliver cash or another financial asset to another entity; or
exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavorable to the entity itself; or

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

a non-derivative financial instrument for which the entity is or may be obliged to deliver a variable number of its own equity instruments; or
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: the value of the financial instrument on the date of its acquisition, origination, or issuance, calculated as set forth in Art. 12;

XX - renegotiation: agreement that implies alteration of the originally agreed conditions of the instrument or the substitution of the original financial instrument for another, with partial or full settlement or refinancing of the respective original obligation;

XXI - restructuring: renegotiation that implies significant concessions to the counterparty, due to relevant deterioration in its credit quality, which would not be granted if such deterioration did not occur;

XXII - effective interest rate: the rate that discounts 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: a future transaction that is anticipated but is not the subject of a firm commitment;

XXIV - transfer of control: act that makes the buyer or assignee of the financial asset the practical holder 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; and

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

XXV - gross carrying amount of a financial instrument: amortized cost of the financial instrument before the adjustment for provision for expected losses associated with credit risk, if applicable; and (Amended, effective October 1, 2023, by CMN Resolution No. 5,100, of August 24, 2023.)

XXVI - operation with characteristics of credit granting: a debt instrument with a legal form distinct from a credit operation that: (Included, effective October 1, 2023, by CMN Resolution No. 5,100, of August 24, 2023.)

a) has as its purpose the granting of credit or the novation of a credit operation; or (Included, effective October 1, 2023, by CMN Resolution No. 5,100, of August 24, 2023.)

b) originates in a process equivalent or similar to that applicable to typical credit operations of the institution, in a relationship between it and its client. (Included, effective October 1, 2023, by CMN Resolution No. 5,100, of August 24, 2023.)

Sole Paragraph. For the purposes of evaluating expected loss associated with credit risk and calculating the provision for expected losses associated with credit risk referred to in Chapter IV, the definition of counterparty provided in item V of the caput includes natural and legal persons who share credit risk vis-à-vis the institution, including through a control relationship, as defined in specific accounting regulations. (Included, effective October 1, 2023, by CMN Resolution No. 5,100, of August 24, 2023.)

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

Art. 3. A financial instrument is characterized as a financial asset with credit recovery problems (problematic asset) when the following occurs: (Amended, effective August 1, 2024, by CMN Resolution No. 5,146, of June 26, 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 institution must consider a period shorter than that established in item I of the caput in the face of evidence that, within that 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 reorganization, or similar acts requested regarding the counterparty;

IV - judicial measure that limits, delays, or prevents compliance with 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 an asset with credit recovery problems is admitted for credits issued or originated after the approval of the judicial reorganization process, or homologation of extrajudicial reorganization, according to 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 institution must establish consistent and verifiable criteria, duly documented, for decharacterizing the instrument as an asset with credit recovery problems.

§ 6. Exceptionally, observance of the requirement referred to in item II of § 4 is waived for financial instruments that, due to their nature and payment structure, provide 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 has been observed during, at minimum, the ninety days prior to the date of decharacterization of the asset as having credit recovery problems. (Included, effective September 1, 2025, by CMN Resolution No. 5,244, of August 28, 2025.)

CHAPTER III

CLASSIFICATION, MEASUREMENT, RECOGNITION, AND DERECOGNITION

Section I
Classification and Reclassification

Subsection I
Classification of Financial Assets

Art. 4. The institutions mentioned in Art. 1 must classify financial assets based on the institution's business model for managing financial assets and 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 in order to receive their respective 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 return 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 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 return 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 for 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 renegotiating credit operations or other operations with characteristics of credit granting.

Art. 5. The business models for managing financial assets mentioned in Art. 4 must:

I - be approved by the board of directors or, in its absence, by the executive board of the institution;

II - establish how certain groups of financial assets are managed together to achieve a specific objective, considering all relevant information, such as:

a) the manner in which the results of the business model and the financial assets belonging to that model are evaluated and presented to the executive board and the board of directors, if existing;

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 activities planned and effectively practiced to achieve their objective.

Art. 6. The institutions mentioned in 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 institution must clearly document the policy and strategy that justify the designation provided for in the caput.

§ 2. The designation referred to in the caput is prohibited for an asset whose main objective for the institution is to generate return by selling the instrument.

Art. 7. The institutions mentioned in Art. 1 may, upon initial recognition, irrevocably opt to classify in the fair value through profit or loss category financial assets that would be classified in the other categories, provided that this classification aims to eliminate or significantly reduce a measurement or accounting 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 of the recognition of gains and losses on these assets.

Subsection II
Reclassification of Financial Assets

Art. 8. In the event of changes in business models, financial assets held in the institution's portfolio must be reclassified prospectively on the first day of the subsequent accounting result calculation period.

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

I - in the transfer of the financial asset from the amortized cost category to the other categories, the difference between the amortized cost of the instrument and the fair value on the date of transfer 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 shareholders' equity, by the net value 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 shareholders' 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 as to result in the measurement of the asset as if it had been classified in that 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 the other categories, the fair value of the instrument on the reclassification date must constitute the new gross accounting value, from which income and expenses, including the provision for expected credit losses associated with credit risk, will be calculated, with no reversal of amounts already computed in the result arising from unrealized gains or losses permitted.

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

Subsection IIID Classification of Financial Liabilities

Art. 9º 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 lending 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 credits to be disbursed, which must be recognized and measured in accordance with the provisions of Chapter IV;

V - financial guarantees provided, 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 IV; and

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

Art. 10. Reclassification of financial liabilities is prohibited.

Subsection IVD 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, observed that:

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

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

Section IID Recognition and Measurement

Subsection ID Initial Recognition and Measurement

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

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

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

§ 1º 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 institution 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 regulation; 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 regulation; or (Redacted, effective 1/8/2024, by CMN Resolution No. 5,146, of 6/26/2024.)

II - defer the difference in accordance with the realization of the gain or loss, in other cases.

§ 2º The provisions of § 1º, 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. In the 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.

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

Sole Paragraph. (Revoked, effective 1/10/2023, by CMN Resolution No. 5,100, of 8/24/2023.)

§ 1º Expenses incurred in the acquisition, origination, or issuance of the instrument that cannot be calculated and controlled individually, without using allocation, throughout the entire term of the instrument, must be recognized as an expense of the period in which they occur. (Included, effective 1/10/2023, by CMN Resolution No. 5,100, of 8/24/2023.)

§ 2º The recognition in the result of the exercise of transaction costs and values received in the acquisition or origination of the instrument considered immaterial is optional. (Included, effective 1/10/2023, by CMN Resolution No. 5,100, of 8/24/2023.)

§ 3º The institution that uses the option provided in § 2º must define in its accounting policy relative and absolute materiality criteria that are: (Included, effective 1/10/2023, by CMN Resolution No. 5,100, of 8/24/2023.)

I - consistent and verifiable; and (Included, effective 1/10/2023, by CMN Resolution No. 5,100, of 8/24/2023.)

II - applied to all financial instruments, regardless of the nature of the cost or revenue to be recognized. (Included, effective 1/10/2023, by CMN Resolution No. 5,100, of 8/24/2023.)

§ 4º It is presumed that a cost and revenue are material if they represent more than 1% (one percent): (Included, effective 1/10/2023, by CMN Resolution No. 5,100, of 8/24/2023.)

I - of the total revenue that the institution will obtain with the financial asset; or (Included, effective 1/10/2023, by CMN Resolution No. 5,100, of 8/24/2023.)

II - of the total expenses that the institution will incur with the financial liability. (Included, effective 1/10/2023, by CMN Resolution No. 5,100, of 8/24/2023.)

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

Subsection IID Appropriation of Revenue and Expenses

Art. 15. Revenue and expenses 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, revenue and expenses, if any, must be appropriated to the result in accordance with interest rates and other forms of remuneration and expenses 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 remuneration referred to in the caput must be:

I - deducted from the accounting value 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 recovery of the initial investment; or

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

Art. 17. Recognition in the period’s result of revenue of any nature not yet received relative to a financial asset with credit recovery problems is prohibited.

~~Sole Paragraph. The revenues referred to in the caput can only be appropriated to the result upon their actual receipt.~~

Sole Paragraph. (Revoked, effective 1/10/2023, by CMN Resolution No. 5,100, of 8/24/2023.)

§ 1º The revenues referred to in the caput can only be appropriated to the result upon their actual receipt. (Included, effective 1/10/2023, by CMN Resolution No. 5,100, of 8/24/2023.)

§ 2º The provisions of the caput and § 1º do not apply to revenues generated by the recovery of written-off assets referred to in Art. 49. (Included, effective 1/10/2023, by CMN Resolution No. 5,100, of 8/24/2023.)

Art. 18. The institution must resume recognizing revenues related 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 IIID 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 valued at fair value, as defined in current regulation, 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.

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

§ 2º 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.

§ 3º 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.

§ 4º In the case of financial assets classified in the fair value through profit or loss category, the provisions of § 1º apply only: (Included, effective 1/10/2023, by CMN Resolution No. 5,100, of 8/24/2023.)

I - to credit operations and other operations with credit granting characteristics; and (Included, effective 1/10/2023, by CMN Resolution No. 5,100, of 8/24/2023.)

II - to financial assets with a delay of more than ninety days in the payment of principal or expenses. (Included, effective 1/10/2023, by CMN Resolution No. 5,100, of 8/24/2023.)

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 IVD Measurement of Renegotiated or Restructured Instruments

Art. 22. In the case of restructuring of financial assets, the gross accounting value 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.

§ 1º Transaction costs must be added to the gross accounting value of the restructured financial asset and any values received in the restructuring of the instrument must be deducted.

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

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

§ 4º If there is no contractual provision for future cash flows, the institution must consider, in calculating the gross accounting value of the restructured instrument, the present value of the best estimate of the amounts to be received during the expected term of the instrument.

§ 5º If the restructuring involves more than one instrument, the institution 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.

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

~~Art. 23. In the case of renegotiation not characterized as a restructuring of financial instruments, the institution must:~~

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, in accordance with the renegotiated contractual conditions. (Redacted, effective 1/10/2023, by CMN Resolution No. 5,100, of 8/24/2023.)

~~I - write off the original financial instrument; and~~

I - (Revoked, effective 1/10/2023, by CMN Resolution No. 5,100, of 8/24/2023.)

~~II - recognize the new instrument in accordance with the provisions of Subsection I of this Section.~~

II - (Revoked, effective 1/10/2023, by CMN Resolution No. 5,100, of 8/24/2023.)

Subsection V Measurement of Investments Held for Sale

Art. 24. Investments in affiliates, controlled entities, and jointly controlled entities evaluated by the equity method that the institution decides to realize through their sale, are available for immediate sale, and whose alienation is highly probable, must be measured, from the date the institution decides to sell them, by the lower value between:

I - the net accounting value of the asset, minus provisions for losses due to impairment; and

II - the fair value of the asset, evaluated in accordance with the provisions of specific regulation, net of sales expenses.

Section IID Derecognition and Transfer

Subsection ID Financial Assets

Art. 25. The institutions mentioned in 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 of the institution to pay values to potential recipients, except if it collects values equivalent to those of the original asset;

b) prohibition, by the terms of the transfer contract, of the institution selling or offering the original asset as collateral, 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 referred to in 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.

§ 1º Operations 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, must be classified in the category of operations with substantial transfer of risks and benefits.

§ 2º Operations 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 the sale price plus any earnings;

II - securities lending contracts;

III - sale of a financial asset together with a total return swap that transfers the exposure to market risk 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 fund buyer, observed the provisions of Art. 27, must be classified in the category of operations with substantial retention of risks and benefits.

§ 3º Operations 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 must be classified in the category of operations without substantial transfer or retention of risks and benefits.

Art. 27. The assessment regarding the transfer or retention of risks and benefits of ownership of financial assets is the responsibility of the institution 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, relative to the variation in the present value of the expected cash flow associated with the financial asset discounted by the appropriate market interest rate, observed that:

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

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

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

§ 2º 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 greater than the expected loss or when the value of the subordinated shares of investing funds acquired is greater than the expected loss.

§ 3º The assessment defined in the caput cannot diverge between the institutions referred to in Art. 1 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 assignor 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 appropriated to the period’s result separately; and

II - by the purchasing or acquiring 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 recording of the sale or transfer of financial assets classified in the category of operations with retention of substantial risks and benefits, the following procedures must be observed:

I - by the selling or assigning institution:

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

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

c) revenues and expenses must be allocated separately to the period's result for the remaining term of the operation, at least monthly; and

II - by the purchasing or acquiring institution:

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

b) revenues must be allocated to the period's result, for 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 nor retention of substantial risks and benefits, with transfer of control of the financial asset subject to the transaction, the following must be:

I - the procedures defined in Art. 28 observed; and

II - any new rights or obligations arising from the sale or transfer recognized separately as assets or liabilities.

Art. 31. For the accounting recording of the sale or transfer of financial assets classified in the category of operations without transfer nor 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 assigning institution:

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

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

c) the positive or negative result determined in the transaction, regarding the portion whose risks and benefits were transferred, must be allocated proportionally to the period's result separately; and

d) revenues and expenses must be allocated separately to the period's result, for the remaining term of the operation, at least monthly; and

II - by the purchasing or acquiring institution:

a) the values paid in the operation must be recorded in assets:

in conformity 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
as a right to receive from the assigning 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 allocated to the period's result, for the remaining term of the operation, at least monthly.

Sole Paragraph. For the purposes of the provision in item I, letter "a", 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 resulting revenue and expense, must be recorded separately, prohibiting the offsetting of assets and liabilities, as well as revenues and expenses.

Art. 33. The operation of sale or transfer of financial assets, the collection of which remains under the responsibility of the seller or assignor, 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 sale or transfer operations, the following procedures must be observed:

I - by the selling or assigning institution:

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

b) write off 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;

II - by the purchasing or acquiring institution:

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

b) recognize the financial asset at fair value or write off the obligation cited in letter "a", as the case may be, if the selling or assigning 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 I, letter "b", the selling or assigning institution must continue to recognize the financial asset offered as collateral, and the purchasing or acquiring institution must not recognize it as its asset.

Art. 35. The provisions provided for in 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 the portion of the 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 Financial Liabilities

Art. 36. The institutions mentioned in Art. 1 must write off a financial liability when the obligation specified in the contract expires, is settled, cancelled, or extinguished.

CHAPTER IV
PROVISION FOR EXPECTED LOSSES ASSOCIATED WITH CREDIT RISK

Section I Allocation of Financial Instruments into Stages

Art. 37. The institutions mentioned in 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; 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 determined in the original allocation in the first stage; and

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

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

§ 1º For financial guarantees provided, the allocation referred to in the caput 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 provisions of the current contractual arrangements.

§ 2º A financial instrument allocated in the third stage at initial recognition that subsequently ceases to be characterized as an asset with credit impairment 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 whose credit risk has been reduced to a level similar to:

I - that of initial recognition; or

II - of the 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 of the 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.~~

§ 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. (Amended, effective from 10/01/2023, by CMN Resolution No. 5,100, of 08/24/2023.)

§ 6º Exceptionally, non-reallocation as established in § 5º is permitted 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.

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 original allocation of the instrument 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 allocation of the instrument 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 caput, the credit risk of the financial instrument must be determined by the probability of the instrument becoming an asset with credit impairment during the entire expected term of the instrument.

§ 3º For the purposes of the provision in the caput, it is permitted for the institution to determine the credit risk considering the probability of the financial instrument being characterized as an asset with credit impairment 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 an asset with credit impairment 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 caput, 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 permitted for the institution to consider 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 this 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 of 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 alteration 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 caput 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 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 Assessment of Expected Loss Associated with Credit Risk

Art. 40. The institutions mentioned in 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, considering, at a minimum:

a) the expected term of the financial instrument; and

b) the current economic situation and reasonable and supportable forecasts of any changes in economic and market conditions that may 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 any 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, the risk profile, and the business model of the institution.

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

§ 4º In estimating the probable present value of realization mentioned in letter "b" of item II of the caput, 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 regarding the counterparty to which the institution has access is optional, for financial assets: (Included, effective from 10/01/2023, by CMN Resolution No. 5,100, of 08/24/2023.)

I - whose settlement term is up to twelve months; (Included, effective from 10/01/2023, by CMN Resolution No. 5,100, of 08/24/2023.)

II - that do not constitute, collectively, a relevant exposure for the institution; and (Included, effective from 10/01/2023, by CMN Resolution No. 5,100, of 08/24/2023.)

III - that are not: (Included, effective from 10/01/2023, by CMN Resolution No. 5,100, of 08/24/2023.)

a) credit operations; (Included, effective from 10/01/2023, by CMN Resolution No. 5,100, of 08/24/2023.)

b) financial instruments with the characteristic of credit granting; (Included, effective from 10/01/2023, by CMN Resolution No. 5,100, of 08/24/2023.)

c) leasing operations; (Included, effective from 10/01/2023, by CMN Resolution No. 5,100, of 08/24/2023.)

d) payment transactions; and (Included, effective from 10/01/2023, by CMN Resolution No. 5,100, of 08/24/2023.)

e) securities. (Included, effective from 10/01/2023, by CMN Resolution No. 5,100, of 08/24/2023.)

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

I - every 6 (six) months, for instruments of 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 alteration in the credit risk of the instrument and in the probable value of realization of guarantees or collateral, if any.

Section III 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, as per Art. 40, may be carried out collectively through the use of a model suitable for the treatment of credit risk by portfolio.

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

I - that belong to the same homogeneous risk group;

II - that are defined in the credit policy and credit management procedures of the institution 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 any;

III - the stage in which the instrument is allocated;

IV - delay in payment of principal or charges;

V - the credit risk and allocation into stages 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 proving 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 characteristics of the instrument no longer resemble those of the group; and

c) annually, in other cases.

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

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

Subsection I Methodology for Calculation of Provision for Expected Losses Associated with Credit Risk

Art. 44. The institutions mentioned in 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 shall be considered as the calculation base:

I - the gross book value of financial assets, except for leasing operations;

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

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

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

V - the present value of the credit to be disbursed.

§ 1º In the calculation of the present value referred to in item II, 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, on the date 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, net of selling costs, in the absence of a guaranteed residual value.

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

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

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

Art. 46. The provision for expected losses associated with credit risk must be established, upon 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 regarding:

a) financial guarantees provided;

b) credit commitments and credits to be disbursed referred to in item "c" of item II of Art. 1; and

c) future consideration 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 that the financial instrument will be characterized as a financial asset with credit recovery problems 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 that the financial instrument will be characterized as an asset with credit recovery problems 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 permitted to recognize the provision for expected losses associated with credit risk in accordance with item II of the caput for instruments allocated to the first stage.

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

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

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

§ 1º The institution must maintain controls to identify financial assets derecognized under this article until all collection procedures have 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 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 referred to in the caput must be: (Redacted, effective from 1/9/2025, by CMN Resolution No. 5,244, of 8/28/2025.)

recognized in accordance with Arts. 22 and 23, in the case of restructuring or renegotiation, or at the present value of the best estimate of amounts to be received, in other cases; and (Added, effective from 1/9/2025,
by CMN Resolution No. 5,244, of 8/28/2025.)

characterized as assets with credit recovery problems, with a provision for expected losses associated with credit risk equal to 100% (one hundred
percent) of the value of the instrument. (Added, effective from 1/9/2025, by CMN Resolution No. 5,244, of 8/28/2025.)

§ 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 permitted 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 caput.

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

Art. 50. Institutions classified in Segment 4 (S4) or Segment 5 (S5), according to current regulation, or members of a prudential conglomerate classified in these segments, must use the simplified methodology for calculating the provision for expected losses associated with credit risk.

§ 1º Institutions classified in S4 or members of a prudential conglomerate classified in this segment are permitted, with prior authorization from the Central Bank of Brazil, to use the methodology for assessing expected loss and calculating and establishing the provision for expected losses associated with credit risk as defined in Sections I to III of this Chapter.

§ 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 by 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 loss associated with the institution's credit risk.

§ 5º The provisions of the caput do not apply to credit cooperatives: (Added, effective from 1/8/2024, by CMN Resolution No. 5,146, of 6/26/2024.)

I - members of cooperative systems of two or three levels that contain an institution classified in segments 1 (S1), 2 (S2), or 3 (S3), according to current regulation; or (Added, effective from 1/8/2024, by CMN Resolution No. 5,146, of 6/26/2024.)

II - members of cooperative systems composed only of institutions classified in segments 4 (S4) or 5 (S5), according to current regulation, whose central cooperative, in the case of two levels, or confederation, in the case of three levels, is authorized by the Central Bank of Brazil to use the methodology referred to in § 1º. (Added, effective from 1/8/2024, by CMN Resolution No. 5,146, of 6/26/2024.)

§ 6º All institutions members of the cooperative systems referred to in § 5º must use the same internal models and systems for measuring and classifying credit risk. (Added, effective from 1/8/2024, by CMN Resolution No. 5,146, of 6/26/2024.)

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

I - regarding corporate counterparties:

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 natural person counterparties:

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, if any, such as modality, liquidity, and probable present value of realization; and

c) book value.

§ 1º The calculation of the provision for expected losses associated with credit risk of financial instruments is the responsibility of the institution holding the instrument, or that retains risks and benefits of financial instruments transferred 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 caput, 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 caput, the institution must use:

I - the fair selling 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 upon initial recognition.

§ 4º The provision for expected losses associated with credit risk relating to 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 balance sheet date relative to the month in which the characterization occurred, be characterized as financial assets 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. (Redacted, effective from 1/8/2024, by CMN Resolution No. 5,146, of 6/26/2024.)

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

CHAPTER V
OF HEDGE ACCOUNTING

Section I Hedge Instruments

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

I - financial derivative instruments, except embedded derivatives in hybrid contracts whose main component is a financial asset;

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

III - the foreign exchange variation component of a non-derivative financial liability or 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 for the protection of foreign exchange risk.

§ 1º Subject to the provisions of the caput, the institution 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 caput 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 Written 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 Hedge Items

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

I - assets;

II - liabilities;

III - firm commitments not yet recognized as assets or liabilities;

IV - highly probable forecast transactions, carried out with a counterparty external to the institution; and

V - net investment in a foreign operation, exclusively for the protection of foreign exchange risk.

§ 1º The institution may designate as a hedge 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 caput and one or more financial derivative instruments.

§ 2º In the case of the designation of a component of the item, in accordance with item II of § 1º, the following may be designated as a hedge item:

I - a variation in cash flows or in the 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 that resulting from 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 hedge 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 hedge 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 hedge items provided for in Arts. 52 and 53;

II - designated and formally 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 hedge item and the hedge instrument is demonstrable;

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 hedge item, nominal value, maturity, and underlying risk, are identical or closely aligned.

§ 3º The documentation provided for in item II of the caput must contain:

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

II - the identification of the hedge instrument, the hedge 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 hedge ratio value and the method used for its determination.

§ 4º The institution must rebalance the hedge relationship, adjusting the designated quantities of the hedge item or the hedge instrument, so as 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 relative to the hedge ratio, but the risk management objective of this relationship remains the same.

§ 5º The institution must reassess the effectiveness of the hedge at least 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 intended 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 profit or loss or other comprehensive income;

II - cash flow hedge: a relationship intended to protect the institution from the effects of 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 profit or loss; or

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

Sole paragraph. The institution is permitted 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, 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 profit or loss; and

II - the gain or loss on the hedge item must adjust its book value in counterpart to profit or loss.

§ 1º If the hedge 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 in counterpart to profit or loss.

§ 2º When the firm commitment subject to protection 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 hedge item is an equity instrument of another entity designated upon initial recognition in the fair value through other comprehensive income category, the gain or loss on the hedge instrument and on the hedge item must be recorded in other comprehensive income, a record that must be maintained even in the event of discontinuation of the hedge relationship.

§ 4º In the event of discontinuation of a fair value hedge relationship whose protected hedge item is a financial instrument measured at amortized cost, the gain or loss mentioned in item II of the caput must be amortized in profit or loss as follows:

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

II - in full, upon derecognition of the hedge 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 in counterpart to the equity account highlighted by the net value of tax effects; and

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

§ 1º The book value of the hedge item must not be altered as a result of 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 hedge item, determined by the present value of the accumulated change in expected future cash flows protected, since the designation of the hedge relationship.

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

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

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 under Article 56.

§ 1º The amount mentioned in the caput must be recognized immediately in the period's profit or loss if it represents a loss whose total or partial recovery is not expected.

§ 2º In the event of discontinuation of cash flow hedge accounting, the amount accumulated in a separate equity account must:

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

II - be immediately reclassified to profit or loss if the occurrence of the future protected cash flows is no longer expected.

Art. 59. Provided the qualification criteria are met, net investment hedge operations must be recognized, from the date of designation, as follows:

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

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

§ 1º The amount accumulated in the separate equity account, as per item I of the caput, must be reclassified to profit or loss, in the corresponding proportion, upon the total or partial disposal of the foreign operation.

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

Art. 60. The institution must discontinue hedge accounting prospectively only when the hedging relationship no longer meets the qualification criteria set forth in Article 54; voluntary discontinuation is prohibited.

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

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

Art. 61. Institutions mentioned in Article 1 are permitted 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 a portion of the portfolio of financial assets or financial liabilities that share the risk being hedged.

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

§ 3º The portfolio referred to in the caput may consist only of financial assets, only of financial liabilities, or of both 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 hedging instruments for 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 Article 52.

§ 1º The hedging 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 hedging instrument must be made for its entire contractual term.

Art. 63. Provided the qualification criteria set forth in Section III of this Chapter are met, 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 Article 56, observing that the gain or loss on the hedged item must be recorded in a separate asset or liability line item, as applicable.

Sole paragraph. The balance of the line items mentioned in the caput must be derecognized 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 institution must discontinue hedge accounting prospectively when the hedging relationship no longer meets 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 VI
DISCLOSURE OF INFORMATION ON FINANCIAL INSTRUMENTS

Art. 65. Institutions mentioned in Article 1 must disclose in the notes to the financial statements the information necessary for users to assess:

I - the relevance of financial instruments to the institution's financial position and performance; and

II - the nature and relevance of the 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 Article 65, institutions mentioned in Article 1 must disclose, at a minimum:

I - the business models defined for each relevant class of financial instruments and their effects on the institution's 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 the institution's 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 allocated in each stage;

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

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

Sole paragraph. In disclosure by class of financial instrument, the institution must provide sufficient information to allow reconciliation with the items presented in the balance sheet.

CHAPTER VII
GENERAL AND TRANSITIONAL PROVISIONS

Section I
General Provisions

Art. 67. The Central Bank of Brazil is authorized to issue norms and adopt measures deemed necessary for the execution of the provisions of this Resolution, including regarding:

I - the definition of the components of the financial instrument that constitute payments of principal and interest on the principal value for the purposes of classifying financial assets;

II - the definition of the methodology for calculating the effective interest rate of the financial instrument;

III - the establishment of parameters for:

a) the disqualification of the instrument as a financial asset with credit recovery problems, including regarding the timely payment period referred to in Article 3, § 4º, item II.

b) the determination of the occurrence of a significant increase in credit risk;

c) the measurement of expected loss associated with credit risk;

IV - the fixing of minimum levels of provision for expected losses associated with credit risk and deadlines for derecognition of financial instruments, considering periods of delay in payment of principal or charges, the nature and purpose of the instrument, as well as any guarantees or collateral, if existing;

V - the definition of additional criteria and procedures for granting the authorization referred to in § 1º of Article 50;

VI - the possibility of:

a) designation as a hedging instrument of portions of financial instruments, including option contracts and forward contracts;

b) designation of a net amount, including financial assets and liabilities, as a hedged item, as well as the procedures and conditions for its accounting recognition; and

c) substitution of assets and liabilities designated as hedged items, as per item "b", as well as the procedures and conditions for such substitution;

VII - specific procedures for the accounting bookkeeping of financial instruments;

VIII - the detailing of information to be disclosed in the notes;

IX - the information and documents that institutions mentioned in Article 1 must keep available to the Central Bank of Brazil, in addition to what is established in Article 68.

Art. 68. Institutions mentioned in Article 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 Article 37;

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

amortized cost;
provision for expected losses associated with credit risk, when applicable; and
fair value adjustments, if applicable;

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

d) the criteria adopted for derecognition of financial assets referred to in Article 49;

e) the criteria adopted to define renegotiation and restructuring of financial instruments; and

f) the methodology and results of internal assessments and backtesting 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, covering 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, covering 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, when applicable.

Art. 69. The Central Bank of Brazil may determine:

I - if it considers the classification by the institution inadequate, the characterization of financial instruments as financial assets with credit recovery problems;

II - if it verifies impropriety or inconsistency in the classification and accounting recording processes of sale or transfer operations of assets, the reclassification, recording, or derecognition 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 provision for expected losses associated with credit risk:

a) the reallocation of the financial instrument to stages;

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

c) the constitution of a supplementary provision, considering the provisioning level calculated 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.

Section II
Transitional Provisions

Art. 70. The accounting criteria established by this Resolution 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, net of tax effects.

Art. 71. Institutions mentioned in Article 1 may perform, in January 2025, for the financial instruments comprising their portfolio on that date:

I - the designation referred to in Article 6; and

II - the option referred to in Article 7.

Art. 71-A. The use of the renegotiated effective interest rate for the calculation of the present value of contractual cash flows of restructured instruments referred to in Article 22 is permitted until December 31, 2026. (Included, effective August 1, 2024, by CMN Resolution No. 5,146, of June 26, 2024.)

Art. 72. Institutions mentioned in Article 1 are permitted to allocate financial instruments held in their portfolios on the date of entry into force of this Resolution to the first stage, except:

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

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

§ 1º For the purposes of assessing the occurrence of a significant increase in credit risk referred to in Article 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 permitted for instruments with up to 60 (sixty) days of delay in the payment of principal or charges, given consistent and verifiable evidence, duly proven, that there has been no significant increase in credit risk compared to that assessed upon initial recognition of the instrument.

Art. 72-A. For the purposes of characterizing a financial instrument as a financial asset with credit recovery problems referred to in Article 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 climate 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 set forth in Article 3, § 2º, item II. (Included, effective August 1, 2024, by CMN Resolution No. 5,146, of June 26, 2024.)

§ 1º The provisions of the caput do not apply to operations: (Included, effective August 1, 2024, by CMN Resolution No. 5,146, of June 26, 2024.)

I - already characterized as problematic assets on the date of restructuring; or (Included, effective August 1, 2024, by CMN Resolution No. 5,146, of June 26, 2024.)

II - with evidence of the counterparty's inability to honor the obligation under the new agreed conditions. (Included, effective August 1, 2024, by CMN Resolution No. 5,146, of June 26, 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 CMN Resolution No. 5,146, of June 26, 2024.)

Art. 72-B. The use of the methodology for assessing expected loss and calculating and constituting the provision for expected losses associated with credit risk as defined in Sections I to III of Chapter IV is permitted, from the date of entry into force of this Resolution: (Included, effective August 1, 2024, by CMN Resolution No. 5,146, of June 26, 2024.)

I - to institutions classified in S4 or part of a prudential conglomerate classified in this segment, whose classification in S3 is expected, according to specific regulation, to take effect in the year 2025; and (Included, effective August 1, 2024, by CMN Resolution No. 5,146, of June 26, 2024.)

II - to institutions part of a cooperative system of two or three levels formed only by institutions classified in S4 and S5, which contains an institution whose classification in S3 is expected, according to specific regulation, to take effect in the year 2025, observing the provisions of § 6º of Article 50. (Included, effective August 1, 2024, by CMN Resolution No. 5,146, of June 26, 2024.)

Art. 73. The recording in assets of instruments derecognized at a loss 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 §§ 2º to 4º of Article 49.

~~Art. 74. Hedge operations accounting-recognized by institutions mentioned in Article 1 must be reclassified, on January 1, 2025, to the new categories.~~

Art. 74. Hedge operations accounting-recognized by institutions mentioned in Article 1 must be reclassified, on January 1, 2027, to the new categories. (Wording given, effective October 1, 2023, by CMN Resolution No. 5,100, of August 24, 2023.)

Sole paragraph. The institution must discontinue the accounting recognition of hedge operations that do not meet the criteria established in this Resolution.

~~Art. 75. Institutions mentioned in Article 1 are permitted to redefine hedge operations accounting-recognized on January 1, 2025, including regarding:~~

Art. 75. Institutions mentioned in Article 1 are permitted to redefine hedge operations accounting-recognized on January 1, 2027, including regarding: (Wording given, effective October 1, 2023, by CMN Resolution No. 5,100, of August 24, 2023.)

I - the designation of the hedging instrument and the hedged item, in accordance with Sections I and II of Chapter V, observing the provisions of Section III of Chapter V; and

II - the classification of hedge operations, in accordance with Section IV of Chapter V.

Art. 76. Institutions mentioned in Article 1 must prepare and send to the Central Bank of Brazil, by June 30, 2022, a plan for the implementation of the accounting regulation established in this Resolution.

Art. 76. Institutions mentioned in Article 1 must, by December 31, 2022, prepare and keep available to the Central Bank of Brazil a plan for the implementation of the accounting regulation established in this Resolution. (Wording given by CMN Resolution No. 5,019, of June 23, 2022.)

Sole paragraph. The plan mentioned in the caput must be:

I - approved by the board of directors or, in its absence, by the executive board of the institution; and

II - disclosed, in summary form, in the notes to the financial statements relating to the 2022 fiscal year.

Art. 77. Institutions mentioned in Article 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 set forth in Resolution No. 4,818, of May 29, 2020.

Art. 77. Institutions mentioned in Article 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 2027 fiscal year, in addition to statements in the international accounting standard, as set forth in Resolution No. 4,818, of May 29, 2020. (Wording given, effective August 1, 2024, by CMN Resolution No. 5,146, of June 26, 2024.)

Sole paragraph. The provisions of the caput also apply to statements relating to a period of less than 1 (one) year.

Art. 78. Institutions mentioned in Article 1 must disclose in the 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 the institution's profit or loss and financial position.

Art. 79. Institutions mentioned in Article 1 are exempt from presenting comparative financial statements for the periods of the year 2025 relative to prior periods.

CHAPTER VIII
FINAL PROVISIONS

Art. 80. The following are revoked:

I - Resolution No. 2,682, of December 21, 1999;

II - Resolution No. 2,697, of February 24, 2000;

III - Resolution No. 3,181, of March 29, 2004;

IV - Resolution No. 3,533, of January 31, 2008;

V - Resolution No. 3,534, of January 31, 2008;

VI - Resolution No. 4,036, of November 30, 2011;

VII - Resolution No. 4,175, of December 27, 2012;

VIII - Resolution No. 4,512, of July 28, 2016;

IX - Resolution No. 4,524, of September 29, 2016;

X - Resolution No. 4,803, of April 9, 2020;