Resolution CMN No. 4653

RESOLUTION NO. 4,653, OF APRIL 26, 2018
Amends Resolution No. 4,222, of May 23, 2013, to adjust the ordinary contribution, establish the additional contribution, and alter the statute and regulations of the Credit Guarantee Fund (FGC), which establish an adjustment in the target size of the fund's net worth, creation of an accounting reserve dedicated to funding operations with the institutions it designates, and alteration of rules related to its governance. The Central Bank of Brazil, in accordance with Art. 9 of Law No. 4,595, of December 31, 1964, makes public that the Monetary National Council, in a session held on April 26, 2018, based on Arts. 3, item VI, and 4, item VIII, of the aforementioned Law, and taking into account the provisions of § 1 of Art. 28 of Complementary Law No. 101, of May 4, 2000, and § 1, item XIII, of Art. 1 of Complementary Law No. 105, of January 10, 2001, R E S O L V E D:
Art. 1 The summary of Resolution No. 4,222, of May 23, 2013, shall be in effect with the following alterations:
“Provides for the contributions to be paid by associated institutions, the conditions for disposing of the special guarantee, the types of institutions associated and the statute and regulations of the Credit Guarantee Fund (FGC).” (NR) Art. 2 Resolution No. 4,222, of 2013, shall be in effect with the following alterations:
“Art. 2 The monthly ordinary contribution of institutions associated with the FGC is 0.01% (one hundredth of a percent) of the amount of balances of accounts referencing the instruments related in items I to X of Art. 2 of
Annex II, even if the corresponding credits are not covered by
the ordinary guarantee.” (NR)
“Art. 2-A The monthly ordinary contribution shall be increased by an additional contribution when the Reference Value is greater than 4 (four) times the Adjusted Net Worth and 75% (seventy-five percent) of the Reference Deposits of the associated institution, calculated in the previous month. § 1 The monthly additional contribution shall be calculated according to the following formula:
CA =
0.01
100
× (1 + ((
VR
PLA) − 4)) × (VR − 4 × PLA)
Where:
CA = Additional Contribution
VR = Reference Value

Resolution No. 4,653, of April 26, 2018 Page 2 of 5 PLA = Adjusted Net Worth § 2 The Central Bank of Brazil shall regulate the method of calculating the Adjusted Net Worth, the Reference Value, and the Reference Deposits, for the purposes of this article. § 3 The Reference Value shall be calculated considering the FGC's exposure to the instruments subject to the ordinary guarantee, excluding those related in Art. 2, items I, II, and IV, of Annex II. § 4 The additional contribution shall be collected starting from January 2020, in accordance with the rules established by the Central Bank of Brazil. § 5 The provisions of items III and IV of Art. 6 shall apply to the additional contribution.” (NR) Art. 3 Annex I to Resolution No. 4,222, of 2013, shall be in effect with the following alterations:
“Art. 4 ............................................................................................................
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§ 2 .................................................................................................................
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II - shall observe the following limits in relation to the net worth of the FGC, in which is included the value of advance contributions due by the associates, contained in the monthly balance sheet or the annual balance sheet of the FGC, minus the value of the Resolution Fund (FR), as provided in § 1 of Art. 3 of the FGC Regulations:
...............................................................................................................” (NR) “Art. 5 Observed the criteria, limits, diversification requirements, operational format, and contractual clauses established by the Board of Directors, the FGC may invest resources up to the global limit of 50% (fifty percent) of its net worth, minus the value of the FR, plus the passive obligations arising from the advance of ordinary contributions by associated institutions, contained in the monthly balance sheet or the annual balance sheet of the FGC:
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§ 3 In the face of an adverse conjunctural situation, recognized by the Central Bank of Brazil, and with the aim of preserving the soundness and stability of the Financial System, the limit stipulated in the main text of this article may be exceptionally extended to up to 75% (seventy-five percent) of the net worth of the FGC, minus the value of the FR, as decided by its Board of Directors.” (NR) “Art. 6 The amount of resources used in the set of operations covered by Arts. 4 and 5 shall observe the limit of 75% (seventy-five

Resolution No. 4,653, of April 26, 2018 Page 3 of 5 percent) of the net worth of the FGC, minus the value of the FR, plus the passive obligations arising from the advance of ordinary contributions by associated institutions, contained in the monthly balance sheet or the annual balance sheet of the Fund.” (NR) “Art. 26. The term of office of members of the Board of Directors shall be up to 3 (three) years, allowing up to two re-elections, provided that the sum of the consecutive terms does not exceed 6 (six) years. ................................................................................................................” (NR) Art. 4 Annex II to Resolution No. 4,222, of 2013, shall be in effect with the following alterations:
“Art. 2 ............................................................................................................
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§ 1 .................................................................................................................
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V - ....................................................................................................................
a) owned by financial institutions and other institutions authorized to operate by the Central Bank of Brazil, pension entities and own social security regimes established by the Union, States, Federal District, and Municipalities, insurance companies, capitalization societies, investment clubs, and investment funds and institutional investors resident or domiciled abroad; and ...............................................................................................................” (NR) “Art. 3 The FGC shall have as its goal the maintenance of its liquidity in an amount equivalent to 2.5% (two and five-tenths percent) of the total of balances of accounts covered by the guarantee, across all institutions associated, referred to as the average index, observing the possibility of variation between the minimum index of 2.3% (two and three-tenths percent) and the maximum index of 2.7% (two and seven-tenths percent). § 1 When the FGC's liquidity reaches the minimum index established in the main text, the FGC shall constitute a specific accounting reserve of resources, referred to as the Resolution Fund (FR), dedicated exclusively to funding the assistance or financial support operations, as provided in Art. 4 of the FGC Statute, with the following associated institutions:
I - financial institutions classified in Segment S1 provided in Resolution No. 4,553, of January 30, 2017; and II - other institutions considered systemically important by the Central Bank of Brazil.

Resolution No. 4,653, of April 26, 2018 Page 4 of 5 § 2 The use of FR resources is conditioned to the declaration of resolution regime in the institutions referred to in § 1, provided that the regime does not trigger the payment of the guarantee. § 3 The FR shall have as its goal the amount equivalent to, at minimum, 1% (one percent) of the total of balances of accounts covered by the guarantee, across all associated institutions. § 4 When the FGC's liquidity is situated between the indices established in the main text as minimum and average, the resources originating from:
I - 80% (eighty percent) of the ordinary and special contributions of the associated institutions; II - reimbursement to the FGC of liquidity assistance and structural assistance operations to associated financial institutions; and III - recovery by the FGC, as subrogated creditor, of the resources expended due to the payment of ordinary and special guarantees. § 5 When the FGC's liquidity is situated between the indices established in the main text as average and maximum, the percentage referred to in item I of § 4 shall be 90% (ninety percent). § 6 If the FGC's liquidity reaches the maximum limit established in the main text and the FR has not reached the goal established in § 3, 100% (one hundred percent) of the FGC's revenues shall be allocated to the FR, minus the values for funding the Fund. § 7 The provisions of §§ 4, 5, and 6 do not apply if the FR has reached the goal established in § 3. § 8 When, for at least 12 (twelve) consecutive months, the calculated liquidity of the FGC is equal to or greater than the average index established in the main text and the value of the FR is equal to or greater than the goal established in § 3, the Board of Directors, upon a reasoned proposal from the Executive Board, may present to the Central Bank of Brazil a proposal to reduce the contributions of the institutions associated with the fund, for review and prior submission to the Monetary National Council for authorization. § 9 For the purpose of quantifying the FGC's liquidity, the available balances in cash, in net financial investments, and in federal public securities shall be considered, minus the value of the FR. § 10. Net financial investments, for the purpose of § 9, are those registered in the current assets of the annual balance sheet and monthly balance sheets, provided they are not linked to assistance operations, as defined in Art. 4 of the FGC Statute. § 11. The liquidity goal of the FGC and the FR shall be reviewed every 4 (four) years.” (NR)

Resolution No. 4,653, of April 26, 2018 Page 5 of 5 Art. 5 This Resolution enters into force on the date of its publication. Ilan Goldfajn President of the Central Bank of Brazil This text does not replace the published in the DOU of 4/30/2018, Section 1, p. 23, and in Sisbacen.