Political Risk Latin America Blog @PolRiskLatam

Brazil creates Financial Stability Committee to reduce ‘systemic risk’ and support the currency

Posted in News and Articles, Political Risk by politicalrisklatam on May 20, 2011

by Merco Press News, May 19th, 2011.

Brazil’s Central Bank announced Wednesday the creation of a Financial Stability Committee to improve supervision of the nation’s financial industry and reduce “systemic risk.”

The committee will be composed of the entire eight-member Central Bank of Brazil board of directors, as voting members, the bank said in a written statement. Other central bank supervisors may be asked to join the committee, from time to time, as non-voting members.

According to the statement, “The creation of the committee represents an institutional improvement that will aid the central bank in complying with its mission of assuring stability for the purchasing power of the nation’s currency and guaranteeing the solidity and efficiency of the financial system.”

The committee’s main purpose will be to define strategies for regulation and supervision of Brazil’s financial system and to orient government agencies in implementing regulations. It will also commission studies and reports on the financial system. (continue reading… )

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