The Brazilian Monetary Council Adjusts Exposure Limits For Customers

The Brazilian Monetary Council (Conselho Monetário Nacional – CMN) issued CMN Resolution No. 4379, of October 30, 2014 (CMN Res. 4379/2014) changing the exposure limits per customer governed by CMN Resolution No. 2844, of June 29, 2001.

The maximum limit of exposure per customer in the hiring of credit and leasing operations and in the provision of guarantees, as well as in respect of credits arising from derivative transactions, is 25% of the Regulatory Capital (Patrimônio de Referência - PR) of the financial institution, comprising multi-service banks, commercial banks, investment banks, development banks, the Federal Savings Bank (Caixa Econômica Federal – CEF), credit, finance and investment companies, leasing companies, real estate credit companies, savings and loan associations, development agencies and mortgage companies.