RegAlert2017-10-19 | Resolução CMN 4606Added
Resolution CMN No. 4606 — Simplified Optional Methodology for Minimum Simplified Reference Equity (PRS5) Calculation and Simplified Risk Management Structure
Resolution CMN No. 4606 establishes a simplified optional methodology for calculating the minimum Simplified Reference Equity (PRS5) requirement and defines additional requirements for a simplified continuous risk management structure for specific financial institutions. Eligible institutions, categorized into three groups including credit cooperatives and non-banking credit entities, must meet size and simplified risk profile criteria to opt for this methodology. The resolution mandates that PRS5 be calculated on a consolidated basis using specific asset and liability adjustments, with minimum requirements set at 12% or 17% of the simplified risk-weighted assets depending on the institution type. Institutions opting for this framework must maintain a simplified risk management structure covering operational and credit risks, and failure to comply with risk profile requirements results in an immediate and prolonged prohibition from using the simplified methodology.
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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 19, 2017, based on Articles 3, item VI, and 4, items VIII and XI, of the aforementioned Law, Articles 9 and 10 of Law No. 4,728, of July 14, 1965, Article 20, § 1, of Law No. 4,864, of November 29, 1965, Articles 7 and 23 of Law No. 6,099, of September 12, 1974, and Article 1, § 1, and 12 of Complementary Law No. 130, of April 17, 2009,
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- Amended by
- CMN Resolution No. 5,199 of December 23, 20242024CMN Resolution No. 5136 — Amends Resolution No. 4,606 of October 19, 2017 Regarding the Simplified Methodology for Calculating Minimum Simplified Reference Equity (PRS5)2024CMN Resolution No. 5,076 — Amending Resolutions No. 4,557 and No. 4,6062023CMN Resolution No. 5,077 — Amends Resolutions Nos. 4,557, 4,606, and 4,6772023CMN Resolution No. 5,049 — Amending Resolutions Nos. 4,282, 4,553, 4,606, 4,677, 4,955, and 4,9582022CMN Resolution No. 4,944 — Amends Resolution No. 4,606 of October 19, 2017 Regarding the Simplified Methodology for PRS5 and Additional Risk Management Requirements2021
- Amends
- CMN Resolution No. 4193 — Regulates the Calculation of Minimum Requirements for Reference Equity (RE), Tier 1, and Core Capital and Establishes the Core Capital Add-on2013Resolution CMN No. 3488 — Establishes Limit for Total Exposure in Gold, Foreign Currency, and Operations Subject to Exchange Rate Variation2007
- Issued under
- CMN Resolution No. 4553 — Establishes Segmentation of Financial Institutions for Proportional Prudential Regulation2017Complementary Law No. 130, of April 17, 2009 – National Cooperative Credit System2009Law No. 4595 dated 1964-12-31not in RegAlertLaw No. 4728 dated 1965-07-14not in RegAlertLaw No. 4864 dated 1965-11-29not in RegAlertLaw No. 6099 dated 1974-09-12not in RegAlert
- Basis for
- Instruction Normative BCB No. 598 — Amends Instruction Normative BCB No. 584 of January 28, 20252025Resolution BCB No. 452 – Amends Resolutions BCB No. 229 (May 12, 2022) and 437 (November 28, 2024) and Circular No. 3,748 (February 27, 2015)2025Normative Instruction BCB No. 521 — Amends Circular Letter No. 3,853 of December 19, 20172024BCB Normative Instruction No. 460 of March 28, 20242024Normative Instruction BCB No. 173 of October 13, 20212021BCB Resolution No. 149 — Amending Circulars No. 3,861 and 3,862 Regarding Risk-Weighted Asset Calculations for Gold, Foreign Currency, and Specific Credit Programs2021
- Refers to
- CMN Resolution No. 4589 - Defines exposure limit and annual global credit limit for public sector entities2017Resolution CMN No. 4557 — Establishes the Risk Management Structure and Capital Management Structure2017CMN Resolution No. 4512 — Accounting Procedures for Passive Provisions for Financial Guarantees2016Resolution CMN No. 4327 — Guidelines for Establishing and Implementing the Socio-Environmental Responsibility Policy by Financial Institutions2014Resolution CMN No. 2283 — Consolidated Calculation of Operational Limits and Permanent Asset Application Cap1996
- Referred to by
- Normative Instruction BCB No. 576 — Amends the Filling Instructions and Layout of Document Code 2061 – Operational Limits Statement (DLO)2024BCB Resolution No. 447 of December 19, 20242024Normative Instruction BCB No. 388 — Amends the text of Circular Letters Nos. 3,850, 3,851, 3,852, 3,853 and 3,854, all dated December 19, 20172023Resolution BCB No. 202 — Establishes the calculation of the risk-weighted asset (RWA) portion for capital requirements associated with payment services risks (RWASP)2022CMN Resolution No. 4,955 — Establishes the methodology for calculating Reference Equity (PR)2021CMN Resolution No. 4945 on the Social, Environmental and Climate Responsibility Policy (PRSAC)2021
Timeline
Amended 7 times · last 2024-12-23
- 2024-12-23
BCBCMN Resolution No. 5,199 of December 23, 2024amends
- 2024-05-23
- 2023-05-18
- 2023-05-18
- 2022-11-25
This document amends: CMN Resolution No. 4193 — Regulates the Calculation of Minimum Requirements for Reference Equity (RE), Tier 1, and Core Capital and Establishes the Core Capital Add-on, Resolution CMN No. 3488 — Establishes Limit for Total Exposure in Gold, Foreign Currency, and Operations Subject to Exchange Rate Variation
Source: Banco Central do Brasil — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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