Brazil flag

SDDS
Special Data
Dissemination Standard

Date of last update: 12/16/2013

FINANCIAL SOUNDNESS INDICATORS (FSIs) METADATA

I. Country Contact Person(s)
Main Points of Contact for FSI Compilation and Dissemination
SupervisorSupervisorCoordinator
Carlos Felipe Borges de Magalhães Lopes
Central Bank of Brazil
Department of Financial System Surveillance – Desig
Av. Álvares Cabral, 1605 – 4th floor (Desig/Diasf)
Belo Horizonte – MG – Brazil
Telephone : +55-31-3253-7127
Fax : +55-31-3253-7384
Email : felipe.lopes@bcb.gov.br
Gustavo José Gomes Dutra
Central Bank of Brazil
Department of Financial System Surveillance – Desig
Av. Álvares Cabral, 1605 – 4th floor (Desig/Diasf)
Belo Horizonte – MG – Brazil
Telephone : +55-31-3253-7322
Fax : +55-31-3253-7384
Email : gustavo.dutra@bcb.gov.br
Frederico Torres de Souza
Central Bank of Brazil
Department of Financial System Surveillance – Desig
Av. Álvares Cabral, 1605 – 4th floor (Desig/Diasf)
Belo Horizonte – MG – Brazil
Telephone : +55-31-3253-7347
Fax : +55-31-3253-7384
Email : frederico.souza@bcb.gov.br

 

II. Periodicity, Definitional Deviations from the Guide and Data Source
  Description Periodicity Definitional Deviations from the Guide Data Source
Definitional Consistency Deviations
I1    Regulatory capital to risk-weighted assets
Quarterly
LFC
(See deviations for underlying series S1 and S2)
Supervisory
S1         Total regulatory capital
LFC
Includes goodwill; Fixed asset revaluation reserve is limited to 25% of regulatory Tier 1 capital.
Supervisory
S2         Risk-weighted assets
LFC
External ratings are not employed.
Supervisory
I2    Regulatory Tier 1 capital to risk-weighted assets
Quarterly
LFC
(See deviations for underlying series S3 and S4)
Supervisory
S3         Regulatory Tier 1 capital
LFC
Includes goodwill. Does not include contingent reserves and special reserves related to minimum dividend not yet distributed. Hybrid Debt Capital Instruments are limited to 15% of regulatory Tier 1 Capital; Fixed asset revaluation reserve is limited to 25% of regulatory Tier 1 capital.
Supervisory
S4         Risk-weighted assets
LFC
External ratings are not employed.
Supervisory
I3    Nonperforming loans net of provisions to capital
Quarterly
LFC
(See deviations for underlying series S5 and S6)
Supervisory
S5         Nonperforming loans net of provisions
LFC
Excludes repurchase agreements that are not classified as deposits; Includes trade credit and similar accounts receivable; Excludes loans among deposit-takers; Includes interest accrued on some NPLs; Interest arrears on nonperforming assets continue to be included in the value of the underlying instrument recorded on the balance sheet only up to 59 days in arrears, but provisions are not created at the same time to offset the recording of interest arrears; Total Provisions include provisions for NPLs and provisions constituted for other loans; There is a possibility that loans overdue less than 90 days are being considered as NPL and there is also a possibility that loans overdue more than 90 days are not being considered as NPL. This is because, while loans are generally classified as NPLs when payments of interest or principal are past due 90 days or more, other factors affecting the ability of debtor’s repayment are also taken into account for defining NPLs. Banks have to establish their own loan review procedures following central bank’s guidance to examine the quality of loans for classification purposes.
Supervisory
S6         Total capital and reserves
LFC
Includes (excludes) any goodwill arising from the purchase (sale) of a stake in an associate or subsidiary (or reverse equity investment stake); Reflects interest accrued on nonperforming assets.
Supervisory
I4    Nonperforming loans to total gross loans
Quarterly
LFC
(See deviations for underlying series S7 and S8)
Supervisory
S7         Nonperforming loans
LFC
Includes trade credit and similar accounts receivable; Excludes loans among deposit-takers; Includes interest accrued on some NPLs; Excludes repurchase agreement that are not classified as deposits; Interest arrears on nonperforming assets continue to be included in the value of the underlying instrument recorded on the balance sheet only up to 59 days in arrears, but provisions are not created at the same time to offset the recording of interest arrears; There is a possibility that loans overdue less than 90 days are being considered as NPL and there is also a possibility that loans overdue more than 90 days are not being considered as NPL. This is because, while loans are generally classified as NPLs when payments of interest or principal are past due 90 days or more, other factors affecting the ability of debtor’s repayment are also taken into account for defining NPLs. Banks have to establish their own loan review procedures following central bank’s guidance to examine the quality of loans for classification purposes.
Supervisory
S8         Total gross loans
LFC
Includes trade credit and similar accounts receivable; Excludes loans among deposit-takers; Excludes repurchase agreements that are not classified as deposits; Includes interest accrued on some NPLs – Interest arrears on nonperforming assets continue to be included in the value of the underlying instrument recorded on the balance sheet only up to 59 days in arrears, but provisions are not created at the same time to offset the recording of interest arrears.
Supervisory
I5    Sectoral distribution of loans to total loans
Quarterly
LFC
(See deviations for underlying series S9 and S10)
Supervisory
S9         Sectoral distribution of loans
LFC
Includes trade credit and similar accounts receivable; Excludes repurchase agreements that are not classified as deposits; Includes interest accrued on some NPLs – Interest arrears on nonperforming assets continue to be included in the value of the underlying instrument recorded on the balance sheet only up to 59 days in arrears, but provisions are not created at the same time to offset the recording of interest arrears.
Supervisory
S10         Total gross loans
LFC
Includes trade credit and similar accounts receivable; Excludes repurchase agreements that are not classified as deposits; Includes interest accrued on some NPLs – Interest arrears on nonperforming assets continue to be included in the value of the underlying instrument recorded on the balance sheet only up to 59 days in arrears, but provisions are not created at the same time to offset the recording of interest arrears.
Supervisory
I6    Return on assets
Quarterly
LFC
(See deviations for underlying series S11 and S12)
Supervisory
S11         Net income
LFC
Refers to net income, after income taxes and extraordinary items, accrued over a twelve-month period. Net income includes goodwill amortization expenses. Does not include unrealized gains and losses on financial instruments.
Supervisory
S12         Total assets
LFC
Refers to average assets outstanding over a twelve-month period. Includes goodwill. There is no specific provision for interest accrued before an asset was classified as nonperforming (90 days overdue). It is worth mentioning that interest accrual ceases when the asset is 60 days overdue.
Supervisory
I7    Return on equity
Quarterly
LFC
(See deviations for underlying series S13 and S14)
Supervisory
S13         Net income
LFC
Refers to net income, after income taxes and extraordinary items, accrued over a twelve-month period. Net income includes goodwill amortization expenses. Does not include unrealized gains and losses on financial instruments.
Supervisory
S14         Total capital and reserves
LFC
Refers to average capital and reserves outstanding over a twelve-month period. Includes (excludes) any goodwill arising from the purchase (sale) of a stake in an associate or subsidiary (or reverse equity investment stake). Reflects interest accrued on assets before they were classified as nonperforming.
Supervisory
I8    Interest margin to gross income
Quarterly
LFC
(See deviations for underlying series S15)
Supervisory
S15         Interest margin
LFC
Refers to financial intermediation net income, before loan loss provisions, accrued over a twelve-month period. In addition to interest income, includes gains and losses on financial instruments.
Supervisory
S16         Gross income
FC
-
Supervisory
I9    Noninterest expenses to gross income
Quarterly
FC
-
Supervisory
S17         Noninterest expenses
FC
-
Supervisory
S18         Gross income
FC
-
Supervisory
I10    Liquid assets to total assets
Quarterly
LFC
(See deviations for underlying series S19 and S20)
See data sources for underlying series S19 and S20
S19         Liquid assets: broad measure
LFC
Includes less relevant liquid assets derived from deposits in other financial institutions, which are used by smaller ones. Additionally, the liquid assets definition adopted corresponds to the guide’s broad measure, with a 30-day (21 work days) time horizon, instead of 90 days mentioned by the guide, and also subject to an stress scenario, which the guide does not suggest.
Exchanges, government securities’ clearing data, clearing houses, settlement systems, securities commission, supervisory data and financial institutions
S20         Total assets
LFC
Comprises current and long-term assets, as well as fixed assets, after some reclassifications and balancings.
Supervisory
I11    Liquid assets to short-term liabilities
Quarterly
LFC
(See deviations for underlying series S21 and S22)
See data sources for underlying series S21 and S22
S21         Liquid assets: broad measure
LFC
Includes less relevant liquid assets derived from deposits in other financial institutions, which are used by smaller ones. Additionally, the liquid assets definition adopted corresponds to the guide’s broad measure, with a 30-day (21 work days) time horizon, instead of 90 days mentioned by the guide, and also subject to an stress scenario, which the guide does not suggest.
Exchanges, government securities’ clearing data, clearing houses, settlement systems, securities commission, supervisory data and financial institutions
S22         Short-term liabilities
LFC
The guide suggests applying the anticipated remaining terms of the funding instruments/contracts and does not mention building stress scenarios. It also suggests excluding deposits between deposit-takers.
Exchanges, government securities’ clearing data, clearing houses, settlement systems, securities commission, supervisory data and financial institutions
I12    Net open position in foreign exchange to capital
Quarterly
LFC
(See deviations for underlying series S23 and S24)
Supervisory
S23         Net open position in foreign exchange
LFC
Excludes those foreign exchange instruments held to offset the effects of differences on taxation rules. Excludes guarantees and similar instruments, which are certain to be called and likely to be irrecoverable.
Supervisory
S24         Total capital and reserves
LFC
Refers to average capital and reserves outstanding over a twelve-month period. Includes (excludes) any goodwill arising from the purchase (sale) of a stake in an associate or subsidiary (or reverse equity investment stake). Reflects interest accrued on assets before they were classified as nonperforming.
Supervisory
LFC: Less than Full Consistency; FC: Full Consistency

 

III. Institutional Coverage, Consolidation Basis and Intra/Inter Group Adjustments
  Description Institutional Coverage Consolidation Basis Intra Group Adjustments Inter Group Adjustments
Consistency with the Guide Explanations Consistency with the Guide Consolidation basis used Consistency with the Guide Explanations
I1    Regulatory capital to risk-weighted assets
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
S1         Total regulatory capital
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
S2         Risk-weighted assets
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
I2    Regulatory Tier 1 capital to risk-weighted assets
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
S3         Regulatory Tier 1 capital
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
S4         Risk-weighted assets
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
I3    Nonperforming loans net of provisions to capital
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
S5         Nonperforming loans net of provisions
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
S6         Total capital and reserves
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
I4    Nonperforming loans to total gross loans
LFC
Includes BNDES, which is not a deposit-taker.
FC
CBCSDI
FC
- No inter-group adjustments.
S7         Nonperforming loans
LFC
Includes BNDES, which is not a deposit-taker.
FC
CBCSDI
FC
- No inter-group adjustments.
S8         Total gross loans
LFC
Includes BNDES, which is not a deposit-taker.
FC
CBCSDI
FC
- No inter-group adjustments.
I5    Sectoral distribution of loans to total loans
LFC
Includes BNDES, which is not a deposit-taker. Loans extended by branches and subsidiaries abroad are included.
FC
CBCSDI
FC
- No inter-group adjustments.
S9         Sectoral distribution of loans
LFC
Includes BNDES, which is not a deposit-taker. Loans extended by branches and subsidiaries abroad are not included.
FC
CBCSDI
FC
- No inter-group adjustments.
S10         Total gross loans
LFC
Includes BNDES, which is not a deposit-taker. Loans extended by branches and subsidiaries abroad are not included.
FC
CBCSDI
FC
- No inter-group adjustments.
I6    Return on assets
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
S11         Net income
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
S12         Total assets
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
I7    Return on equity
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
S13         Net income
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
S14         Total capital and reserves
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
I8    Interest margin to gross income
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
S15         Interest margin
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
S16         Gross income
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
I9    Noninterest expenses to gross income
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
S17         Noninterest expenses
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
S18         Gross income
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
I10    Liquid assets to total assets
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
S19         Liquid assets: broad measure
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
S20         Total assets
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
I11    Liquid assets to short-term liabilities
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
S21         Liquid assets: broad measure
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
S22         Short-term liabilities
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
I12    Net open position in foreign exchange to capital
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
S23         Net open position in foreign exchange
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
S24         Total capital and reserves
LFC
Does not cover all deposit-taking entities, but only those that are banks or banking groups.
FC
CBCSDI
FC
- No inter-group adjustments.
BNDES: Brazilian Development Bank; CBCSDI: Cross-border, cross-sector consolidation basis for all domestically incorporated entities; LFC: Less than Full Consistency; FC: Full Consistency

 

IV. Valuation, Time of Recognition of Flows and Positions, and Exchange Rate
  Description Valuation Time of Recognition of Flows and Positions Exchange Rate
Consistency with the Guide Explanations Consistency with the Guide Explanations Consistency with the Guide Explanations
I1    Regulatory capital to risk-weighted assets
FC
-
FC
-
FC
-
S1         Total regulatory capital
FC
-
FC
-
FC
-
S2         Risk-weighted assets
FC
-
FC
-
FC
-
I2    Regulatory Tier 1 capital to risk-weighted assets
FC
-
FC
-
FC
-
S3         Regulatory Tier 1 capital
FC
-
FC
-
FC
-
S4         Risk-weighted assets
FC
-
FC
-
FC
-
I3    Nonperforming loans net of provisions to capital
LFC
Tradable liabilities are valued at historical values.
FC
-
FC
-
S5         Nonperforming loans net of provisions
FC
-
FC
-
FC
-
S6         Total capital and reserves
LFC
Tradable liabilities are valued at historical values.
FC
-
FC
-
I4    Nonperforming loans to total gross loans
FC
-
FC
-
FC
-
S7         Nonperforming loans
FC
-
FC
-
FC
-
S8         Total gross loans
FC
-
FC
-
FC
-
I5    Sectoral distribution of loans to total loans
FC
-
FC
-
FC
-
S9         Sectoral distribution of loans
FC
-
FC
-
FC
-
S10         Total gross loans
FC
-
FC
-
FC
-
I6    Return on assets
FC
-
FC
-
FC
-
S11         Net income
FC
-
FC
-
FC
-
S12         Total assets
FC
-
FC
-
FC
-
I7    Return on equity
LFC
Tradable liabilities are valued at historical values.
FC
-
FC
-
S13         Net income
FC
-
FC
-
FC
-
S14         Total capital and reserves
LFC
Tradable liabilities are valued at historical values.
FC
-
FC
-
I8    Interest margin to gross income
FC
-
FC
-
FC
-
S15         Interest margin
FC
-
FC
-
FC
-
S16         Gross income
FC
-
FC
-
FC
-
I9    Noninterest expenses to gross income
FC
-
FC
-
FC
-
S17         Noninterest expenses
FC
-
FC
-
FC
-
S18         Gross income
FC
-
FC
-
FC
-
I10    Liquid assets to total assets
FC
-
FC
-
FC
-
S19         Liquid assets: broad measure
FC
-
FC
-
FC
-
S20         Total assets
FC
-
FC
-
FC
-
I11    Liquid assets to short-term liabilities
FC
-
FC
-
FC
-
S21         Liquid assets: broad measure
FC
-
FC
-
FC
-
S22         Short-term liabilities
FC
-
FC
-
FC
-
I12    Net open position in foreign exchange to capital
LFC
Tradable liabilities are valued at historical values.
FC
-
FC
-
S23         Net open position in foreign exchange
LFC
Tradable liabilities are valued at historical values.
FC
-
FC
-
S24         Total capital and reserves
LFC
Tradable liabilities are valued at historical values.
FC
-
FC
-
LFC: Less than Full Consistency; FC: Full Consistency

 

V. Guide and Amendments to the Guide References
  Description Guide Amendments to the Guide
I1
S1
S2
   Regulatory capital to risk-weighted assets
        Total regulatory capital
        Risk-weighted assets
Chapter 6: 6.17-6.18, Appendix II: 9-12
Chapter 4: 4.68-4.73
Chapter 4: 4.74
AG. 7-8
AG. 7-8
AG. 7-8
I2
S3
S4
   Regulatory Tier 1 capital to risk-weighted assets
        Regulatory Tier 1 capital
        Risk-weighted assets
Chapter 6: 6.19, Appendix II: 12-14
Chapter 4: 4.70
Chapter 4: 4.74
AG. 7-8
AG. 7-8
AG. 7-8
I3
S5
S6
   Nonperforming loans net of provisions to capital
        Nonperforming loans net of provisions
        Total capital and reserves
Chapter 6: 6.22-6.23, Appendix II: 15-19
Chapter 4: 4.50, 4.84-4.87
Chapter 4: 4.62-4.65, 4.68-4.73
AG. 7-8, 18-21, 25
AG. 18-21, 25
AG. 7-8, 18, 20-21
I4
S7
S8
   Nonperforming loans to total gross loans
        Nonperforming loans
        Total gross loans
Chapter 6: 6.54-6.55, Appendix II: 20-24
Chapter 4: 4.84-4.87
Chapter 4: 4.45-4.48
AG. 18-21, 25
AG. 18-21, 25
AG. 18-21
I5
S9
S10
   Sectoral distribution of loans to total loans
        Sectoral distribution of loans
        Total gross loans
Chapter 6: 6.56-6.57, Appendix II: 25-29
Chapter 2: 2.4-2.18, Chapter 3: 3.34-3.43
Chapter 4: 4.45-4.48
AG. 18-21
AG. 18-21
AG. 18-21
I6
S11
S12
   Return on assets
        Net income
        Total assets
Chapter 6: 6.52-6.53, Appendix II: 30-36
Chapter 4: 4.17-4.35
Chapter 4: 4.37-4.38, Chapter 5: 5.91, Chapter 6: 6.53
AG. 11-13, 18-21, 26
AG. 11-13, 26
AG. 18-21
I7
S13
S14
   Return on equity
        Net income
        Total capital and reserves
Chapter 6: 6.25-6.26, Appendix II: 37-40
Chapter 4: 4.17-4.35
Chapter 4: 4.62-4.65, 4.68-4.73, Chapter 6: 6.26
AG. 11-13, 18, 20-21, 26
AG. 11-13, 26
AG. 7-8, 18, 20-21
I8
S15
S16
   Interest margin to gross income
        Interest margin
        Gross income
Chapter 6: 6.69-6.70, Appendix II: 41-46
Chapter 4: 4.17-4.19
Chapter 4: 4.17-4.29
AG. 11-13
-
AG. 11-13
I9
S17
S18
   Noninterest expenses to gross income
        Noninterest expenses
        Gross income
Chapter 6: 6.73-6.74, Appendix II: 47-51
Chapter 4: 4.30-4.31
Chapter 4: 4.17-4.29
AG. 11-13
AG. 11
AG. 11-13
I10
S19
S20
   Liquid assets to total assets
        Liquid assets: broad measure
        Total assets
Chapter 6: 6.45-6.46, Appendix II: 52-58
Chapter 4: 4.78-4.81
Chapter 4: 4.37-4.38, Chapter 5: 5.91
AG. 18-21, 23
AG. 23
AG. 18-21
I11
S21
S22
   Liquid assets to short-term liabilities
        Liquid assets: broad measure
        Short-term liabilities
Chapter 6: 6.47-6.48, Appendix II: 59-64
Chapter 4: 4.78-4.81
Chapter 4: 4.83
AG. 23-24
AG. 23
AG. 24
I12
S23
S24
   Net open position in foreign exchange to capital
        Net open position in foreign exchange
        Total capital and reserves
Chapter 6: 6.31-6.37, Appendix II: 65-70
Chapter 4: 4.92; Chapter 6: 6.31-6.37
Chapter 4: 4.62-4.65, 4.68-4.73
AG. 7-8, 16, 18, 20-21, 28
AG. 16
AG. 7-8, 18, 20-21, 28

 

VI. External Links
  • Financial Soundness Indicators (FSIs): Home Page
  • Financial Soundness Indicators (FSIs): Concepts and Definitions
  • Financial Soundness Indicators (FSIs): Compilation Guide
  • Amendments to the Financial Soundness Indicators (FSIs) Compilation Guide