Brazil: Financial Sector Assessment Program-Technical Note on Bank Resolution, Financial Sector Safety Nets, Crisis Prevention and Management
IMF Staff Country Reports, November 30, 2018
Source details
- Canonical URL
- Brazil: Financial Sector Assessment Program-Technical Note on Bank Resolution, Financial Sector Safety Nets, Crisis Prevention and Management
Other formats
Bibliographic details
- Published: November 30, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484387528.002
Key findings and improvements
- Important improvements have been made to the bank resolution, safety net and crisis management framework since the last FSAP.
- The resolution framework has been strengthened with the creation, within the Banco Central do Brasil (BCB), of a new Resolution Department.
- Requirements for recovery and resolution planning have been established.
- The early intervention powers of the BCB are described as robust and flexible.
Limitations and gaps identified
- The current framework has limitations that are broadly acknowledged by the authorities.
- Resolution powers are incomplete.
- No formal inter-agency arrangements for crisis management are in place.
Draft Law and FSAP role
- The BCB has taken the lead in preparing a comprehensive draft law (the “Draft Law”) that seeks to introduce a new resolution regime in line with international best practices.
- This FSAP takes place at a critical juncture and provides recommendations on the design features of the new resolution regime.
- The FSAP examines the existing framework as well as the areas not addressed in the Draft Law.
Subjects and policy themes covered
- Bank resolution
- Bank resolution framework
- BCB autonomy
- Bridge bank
- Central bank
- Crisis prevention
- Deposit insurance
- Financial crises
- Lender of last resort
- Public funds
- Resolution regime
- Securities regulator
- Superior court
Content in this bundle
- Country Report