Explanatory note to the tables of the Boletim do Banco Central
Chapter II - Money and Credit
As of August, 2000As of September, 2007
The National Monetary Council (CMN), through Resolution 2,682, dated 12.21.1999, revised the procedures utilized for classifying credit operations, with the aim of making them more objective and broader in scope, and instituted a new technically more suitable foundation for setting aside provisions for possible losses. In this way, as of 3.1.2000, the newly adopted system determined to be necessary an analysis of the potential risk of the borrower by the financial institution in addition to the consideration of the period of default and the guaranties offered, following international standard procedures. In the framework of the alterations introduced, one should highlight the classification of the credit portfolio into nine different levels with increasingly more serious risk levels: AA, A, B, C, D, E, F, G and H, as compared to the previous three classification levels.
The decrease in the balances of table II.17 (Nonbanking financial institutions) is due to the transformation of a leasing company into another modality of financial institution which is not included in this table.