On August 16, the Central Bank of Brazil (Bacen) published Public Consultation Notice No. 53/2017 in order to receive suggestions and comments on a draft resolution and the three circulars that will establish a simplified methodology for determining the equity benchmark for small-sized institutions. The objective is to facilitate the entry and prudent operation of new institutions with low exposure to risks in the financial system.The option to use the simplified methodology in determining the minimum equity reference requirement will be provided to financial institutions and other institutions authorized to operate by the Bacen belonging to the following groups:
- Group I: singular credit cooperatives;
- Group II: non-banking institutions operating in granting credit, except development agencies; and
- Group III: non-banking institutions operating in the gold, foreign currency, or fiduciary markets.