Regulatory Consistency Assessment Programme (RCAP) - Assessment of Basel III regulations in Brazil

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BCBS  | 
Implementation reports
10 December 2013
Status:  Current

Through its Regulatory Consistency Assessment Programme (RCAP), the Basel Committee monitors the timely adoption of regulations by its members, assesses their consistency with the Basel framework and analyses the quality of intended regulatory outcomes. The RCAP also helps member jurisdictions to identify deviations from the Basel framework and assesses their materiality. This report describes the Committee's assessment of the implementation of the Basel capital standards in Brazil. 

Brazil's implementation of the Basel capital framework was found to be closely aligned with the Basel III global standards. 11 out of 14 assessed components were found to be "Compliant", the highest possible grade. Three components were graded "Largely Compliant" (one notch below the highest grade): the Standardised Approach for credit risk, minimum requirements for capital buffers and Pillar 2 (the Supervisory Review Process). Although some differences with the Basel framework were found in these areas, none of the findings were judged to be material at this point. Therefore, the overall framework of Brazil's capital regulation was graded "Compliant".