## 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](https://www.imf.org/en/publications/cr/issues/2018/11/30/brazil-financial-sector-assessment-program-technical-note-on-bank-resolution-financial-46413)

## Other formats

- [Markdown version](/en/publications/cr/issues/2018/11/30/brazil-financial-sector-assessment-program-technical-note-on-bank-resolution-financial-46413/index.md)
- [Structured JSON version](/en/publications/cr/issues/2018/11/30/brazil-financial-sector-assessment-program-technical-note-on-bank-resolution-financial-46413/index.json)
- [Bundle manifest](/en/publications/cr/issues/2018/11/30/brazil-financial-sector-assessment-program-technical-note-on-bank-resolution-financial-46413/bundle-manifest.json)

## Bibliographic details
- Published: November 30, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484387528.002

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### 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

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## Content in this bundle

- **Country Report**
  - [Country Report (Markdown version)](/-/media/files/publications/cr/2018/cr18341.pdf.md){rel="alternate" type="text/markdown"}
  - [Country Report (PDF)](/-/media/files/publications/cr/2018/cr18341.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2018/11/30/brazil-financial-sector-assessment-program-technical-note-on-bank-resolution-financial-46413_