Brazil: Financial Sector Assessment Program-Detailed Assessment of Observance – Basel Core Principles for Effective Banking Supervision
IMF Staff Country Reports, November 30, 2018
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- Brazil: Financial Sector Assessment Program-Detailed Assessment of Observance – Basel Core Principles for Effective Banking Supervision
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Bibliographic details
- Published: November 30, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484387504.002
Supervisory commitment and strategic orientation
- The Central Bank of Brazil (BCB) has shown a determined commitment to enhancing its standards and practices of banking supervision.
- Changes in the thinking and practices of the BCB’s supervision are not limited to responses to the demands of the international regulatory reform agenda.
- The BCB has been guided by the principle of integration in:
- expectations for its own internal operations, and
- standards it expects financial institutions to meet in governing their own risks and activities.
Key developments and analytical approaches
- The BCB conducts innovative and challenging work in contagion analysis at the systemic level.
- The contagion analysis perspective is being embedded into prudential work at the firm level to assess contagion risk within individual institutions.
- Developments exemplifying enhanced supervisory capacity include:
- boosting staff levels in conduct supervision,
- introducing a form of twin peaks,
- implementing contagion risk analysis, and
- adopting a prudential conglomerate approach.
Thematic focus areas
- Areas of supervisory relevance highlighted by the assessment include:
- Banking,
- Credit risk,
- Financial regulation and supervision,
- Financial sector policy and analysis,
- Liquidity risk,
- Market risk,
- Operational risk,
- Stress testing.
International Monetary Fund. "Brazil: Financial Sector Assessment Program-Detailed Assessment of Observance – Basel Core Principles for Effective Banking Supervision", November 30, 2018.
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