Co-written by Adriana M. Gödel Stuber
The Brazilian Monetary Council authorized financial institutions and institutions accredited by the Brazilian Central Bank (Bacen) to perform credit derivative transactions. The new rules are contained in Resolution No. 2933 issued by Bacen on February 28, 2002.
According to said Resolution, multi-service, commercial and investment banks; the Federal Savings Banks; loan, finance and investment companies; real estate loan and leasing companies are the only institutions authorized to bear the credit risk in a transaction. In the specific case of leasing companies, the transaction may only occur if the underlying asset relates to credits deriving from leasing transactions.
