Brazil central bank postpones higher capital requirements for fintechs to July 2023 (updated)

PagSeguro Digital

18/11/2022 13:01

(Adds details on requirements)
       BRASILIA, Nov 18 (Reuters) - Brazil's central bank on
Friday announced the postponement of higher capital requirements
for fintechs to July 2023, after establishing tougher rules for
payment institutions based on their size and complexity that
were due to start in January. 
    "The development and necessary adjustments in management
systems and generation of prudential information by regulated
institutions will require a longer period of adaptation than
initially indicated by the regulator," the central bank said in
a statement. 
    The new framework will extend the proportionality of
regulatory requirements currently used for conglomerates of
financial institutions to include financial conglomerates led by
payment institutions.
        It is expected to affect companies such as credit card
issuer Nubank  NU.N , payment company PagSeguro  PAGS.N ,
financial technology solutions firm StoneCo  STNE.O  and digital
wallet PicPay.
  
        Companies will now have another six months before being
subjected to the new calculation of regulatory capital, which
will disregard assets that have little or no value for payment
institutions' functioning, ensuring that they build a greater
capacity to absorb unexpected losses.
  
 (Reporting by Marcela Ayres; Editing by Mark Potter and Mark
Porter)
 ((marcela.ayres@thomsonreuters.com; +55 11 5047-2444;))