7. Banking System Supervisory Entities

Página 7

Banking system supervisors are government institutions responsible for regulating, supervising and ensuring the stability and integrity of the financial system. In this guide, we'll explore seven of these supervisory bodies, their roles and responsibilities.

1. Central Bank of Brazil (BACEN)

The Central Bank of Brazil, also known as BACEN, is the main supervisory entity of the Brazilian banking system. He is responsible for ensuring the country's monetary and financial stability, overseeing financial institutions, issuing the national currency and administering monetary policy. BACEN is also responsible for regulating the volume of credit and money in the economy, controlling inflation and maintaining the stability of the purchasing power of the national currency.

2. Securities and Exchange Commission (CVM)

The Securities Commission (CVM) is an autonomous entity linked to the Ministry of Economy whose objective is to regulate and supervise the Brazilian securities market. The CVM has the power to apply administrative and criminal sanctions to entities or individuals that violate the rules of the securities market. In addition, the CVM is responsible for protecting investors against fraud, market manipulation and other illegal practices.

3. National Monetary Council (CMN)

The National Monetary Council (CMN) is the highest body of the national financial system. He is responsible for formulating the country's monetary and credit policy with the aim of maintaining currency stability and economic development. The CMN is also responsible for regulating the constitution, operation and supervision conditions of financial institutions and disciplining monetary and exchange rate policy instruments.

4. Private Insurance Superintendence (SUSEP)

The Superintendence of Private Insurance (SUSEP) is the entity responsible for supervising and controlling the insurance, open private pension, capitalization and reinsurance markets. SUSEP has the power to supervise the operations of these markets and apply sanctions in case of irregularities. In addition, SUSEP is responsible for stimulating the efficiency of the insurance market and protecting the rights of consumers.

5. National Supplementary Pension Superintendence (PREVIC)

The National Supplementary Pension Plan (PREVIC) is a federal agency responsible for inspecting and supervising the activities of closed supplementary pension funds. PREVIC aims to guarantee the financial and actuarial balance of benefit plans, protect the interests of participants and beneficiaries and promote the stability and development of the supplementary pension system.

6. National Financial System Appeals Council (CRSFN)

The Appeals Council of the National Financial System (CRSFN), also known as Conselhinho, is a second-degree collegiate body that judges appeals against decisions by BACEN, CVM, SUSEP and PREVIC. The purpose of the CRSFN is to guarantee the right of defense to institutions and individuals who are subject to sanctions by these supervisory entities and to contribute to legal certainty in the national financial system.

7. Credit Guarantee Fund (FGC)

The Credit Guarantee Fund (FGC) is a private, non-profit entity whose objective is to protect depositors and investors in the event of bankruptcy, liquidation or intervention of an associated financial institution. The FGC guarantees the return of deposits up to a certain amount, contributing to maintaining the confidence and stability of the national financial system.

In summary, these supervisory bodies play a crucial role in maintaining the stability and integrity of the banking system. They ensure that financial institutions operate safely and efficiently, protect the rights of consumers and investors, and contribute to the country's economic development.

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88. Central Bank of Brazil