16 April 2020 – Changed prudential requirements for cooperative banks

This item is sourced from COVID-19 Policy Watch co-ordinated by Policy. We are in the process of gathering further information and aligning taxonomies for these items.

Type of Intervention: Financial markets and monetary policy
Sectors Involved:
Level of Jurisdiction: National
Lead People/Agency:

Overview: The Banco Central do Brasil adjusted the regulation of the Special Temporary Liquidity Line backed by Guaranteed Financial Bills (LTEL-LFG), the maximum limit on loans taken by cooperative banks will become 100% of the Adjusted Shareholders’ Equity calculated based on the Combined Balance Sheets of the Cooperative Systems. This seeks to give the same treatment to cooperative banks as that accorded to prudential banking conglomerates.
Full details here: https://www.bcb.gov.br/detalhenoticia/17048/nota