Resolution CMN No. 4616 — Establishes the minimum limit for the Long-Term Liquidity Indicator (NSFR) and conditions for compliance

RESOLUTION NO. 4,616, OF NOVEMBER 30, 2017

Provides for the minimum limit of the Long-Term Liquidity Indicator (NSFR) and the conditions for its compliance.

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 November 30, 2017, considering the provisions of Article 4, items VIII and XI, of the aforementioned Law,

RESOLVES:

Art. 1 This Resolution defines and establishes the minimum limit of the Long-Term Liquidity Indicator (NSFR) and the conditions for its compliance.

Art. 2 Institutions classified in Segment 1 (S1), in accordance with Article 2 of Resolution No. 4,553, of January 30, 2017, must calculate the NSFR, observing the provisions of this Resolution.

§ 1 The NSFR corresponds to the ratio between the amount of Available Stable Funding (ASF) and the amount of Required Stable Funding (RSF).

§ 2 For institutions that are part of the same Prudential Conglomerate, as defined in Resolution No. 4,280, of October 31, 2013, the calculation of the NSFR must occur on a consolidated basis.

Art. 3 The institutions referred to in Article 2 must permanently comply with a minimum limit of 1 (one) for the NSFR value.

Art. 4 In case of non-compliance with the provisions of Article 3, the institution must:

I - immediately inform the Central Bank of Brazil of the causes that led the NSFR to reach a value below the minimum required limit; and

II - present to the Central Bank of Brazil, within the timeframe defined by it, the NSFR recovery plan, including the measures and strategies for its reclassification to the minimum required limit.

Sole Paragraph. The Central Bank of Brazil may request additional information to those mentioned in items I and II of this article.

Art. 5 The Central Bank of Brazil will establish the calculation methodology for the ASF and RSF amounts and the information disclosure requirements for the NSFR.

Art. 6 Article 3 of Resolution No. 4,401, of February 27, 2015, shall be in effect with the following wording:

Resolution No. 4,616, of November 30, 2017 Page 2 of 2

“Art. 3 Financial institutions classified in Segment 1 (S1), in accordance with Article 2 of Resolution No. 4,553, of January 30, 2017, must calculate the LCR, observing the provisions of this Resolution.” (NR)

Art. 7 This Resolution enters into force on October 1, 2018.

Art. 8 The caput and the sole paragraph of Article 4 of Resolution No. 4,401, of February 27, 2015, are hereby repealed.

Ilan Goldfajn
President of the Central Bank of Brazil

This text does not replace the published version in the DOU of 12/4/2017, Section 1, p. 25, and in Sisbacen.