2013-10-31 | Resolução CMN 4277Added
Resolution CMN No. 4277 establishes minimum requirements and prudential adjustments for the pricing of financial instruments valued at market price, applying to multiple banks, commercial banks, investment banks, exchange banks, savings banks, BNDES, and conglomerates containing at least one such bank. Institutions must implement prudent and reliable pricing systems with documented policies, independent verification, and integration with risk management processes. The resolution mandates the use of market valuation where possible, allowing model-based valuation only under strict conditions, and requires the deduction of prudential adjustments from Core Capital when not recognized for accounting purposes. The regulation enters into force on July 1, 2014.
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The Central Bank of Brazil, in accordance with Article 9 of Law No. 4,595 of December 31, 1964, makes public that the National Monetary Council, in a session held on October 31, 2013, based on Article 4, item VIII, of the aforementioned Law, in Articles 2, item VI, 8, and 9 of Law No. 4,728 of July 14, 1965, in Article 20 of Law No. 4,864 of November 29, 1965, in Law No. 6,099 of September 12, 1974, in Law No. 10,194 of February 14, 2001, and in Article 6 of Decree-Law No. 759 of August 12, 1969,
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