Quick Summary
- 1Four entities representing the financial sector released a joint statement defending the acting of the Central Bank and the preservation of its technical and operational independence.
- 2These entities represent over 100 institutions, covering approximately 90% of the financial sector and 98% of assets.
- 3According to the document, the presence of an autonomous regulator is considered a pillar for maintaining a solid and resilient financial system.
- 4The associations state that the Central Bank has exercised this role with attentive and independent supervision.
Quick Summary
Four major financial sector associations issued a joint statement defending the Central Bank and the preservation of its technical and operational independence. The entities represent over 100 institutions, covering approximately 90% of the financial sector and 98% of assets.
The document asserts that an autonomous regulator is a fundamental pillar for a solid financial system. It praises the Central Bank's supervision as attentive, independent, and exclusively technical. The note emphasizes preventive supervision that ensures adequate capital and liquidity levels. The associations warn that reviewing technical decisions creates regulatory instability and legal insecurity. They argue that while the Judiciary can analyze legal aspects, technical authority must remain with the Central Bank.
Joint Defense of Regulatory Autonomy
Four entities representing financial institutions released a joint statement defending the acting of the Central Bank (BC) and the preservation of its independence. These associations represent more than 100 institutions, accounting for approximately 90% of the financial sector and 98% of total assets.
According to the document, the presence of an autonomous regulator is considered one of the pillars for maintaining a solid and resilient financial system. The associations affirm that the Central Bank has exercised this role with supervision that is attentive and independent, exclusively technical, prudent, and vigilant.
The note highlights that this supervision acts preventively. It ensures that banks and other institutions maintain adequate levels of capital and liquidity, as well as risk policies compatible with their businesses.
"With the simple hypothesis of review or eventual reversal of the BCB's technical decisions, one enters a sensitive terrain of regulatory and operational instability, generating legal insecurity and compromising the predictability of decisions."— Joint Statement
Historical Resilience and Risks
As an example of effective supervision, the entities cite the low number of institutions with solvency problems in recent years. This stability persisted even despite the 2008 crisis and the COVID-19 pandemic.
The text also warns about the risks of regulatory instability. This instability could arise if the technical decisions of the Central Bank are reviewed by other government bodies.
The document states that the mere hypothesis of a review or eventual reversal of the BCB's technical decisions leads to a sensitive terrain of regulatory and operational instability. This generates legal insecurity and compromises the predictability of decisions.
The Role of the Judiciary
The entities acknowledge the role of the Power of the Judiciary in analyzing the legal aspects of the regulator's actions. However, they request that the technical authority of the Central Bank be preserved.
The preservation of this authority is deemed necessary to avoid negative impacts on the economy and confidence in the financial system. The signatories of the note are:
- Associação Brasileira de Bancos (ABBC)
- Associação Nacional das Instituições de Crédito (Acrefi)
- Febraban (Federação Brasileira de Bancos)
- Zetta (Association representing financial and payment means companies)
"Supervision that is attentive and independent, exclusively technical, prudent, and vigilant."— Joint Statement
Frequently Asked Questions
They issued a joint statement defending the Central Bank's technical and operational independence, stating that an autonomous regulator is essential for a solid financial system.
The note was signed by ABBC, Acrefi, Febraban, and Zetta, representing over 100 institutions and 90% of the financial sector.
The note argues that preserving the Central Bank's technical authority prevents regulatory instability, legal insecurity, and negative impacts on the economy.
