The National Financial System (SFN) is a set of institutions, rules and financial instruments that facilitate the transfer of resources from surplus economic agents (savers) to deficit economic agents (borrowers). It plays a crucial role in the economy as it allows for the efficient flow of funds from those who have them to those who need them, contributing to economic growth and financial stability.
The structure of the SFN is divided into four main components: regulatory bodies, supervisory entities, market operators and settlement and custody systems.
1. Normative Bodies
Normative bodies are responsible for establishing the rules and guidelines for the operation of the financial system. In Brazil, the main regulatory bodies are the National Monetary Council (CMN), the Central Bank of Brazil (BACEN) and the Securities and Exchange Commission (CVM).
The CMN is the highest body of the financial system, responsible for formulating currency and credit policy, with the aim of stabilizing the currency and promoting the socioeconomic development of the country. BACEN is responsible for executing the policies formulated by the CMN, supervising financial institutions and ensuring the efficient functioning of the system. The CVM is responsible for regulating and supervising the securities market, protecting investors and ensuring market transparency and integrity.
2. Supervisory Entities
The supervisory entities are responsible for inspecting and supervising the activities of financial institutions, ensuring their compliance with the rules and regulations established by regulatory bodies. The main supervisory entities are BACEN and CVM, mentioned above, and the Superintendence of Private Insurance (SUSEP).
SUSEP is responsible for overseeing the insurance, open private pension, capitalization and reinsurance market, ensuring the protection of policyholders and market stability.
3. Market Operators
Market operators are the financial institutions that carry out financial intermediation. They include commercial banks, investment banks, credit, finance and investment societies, stockbrokers, securities dealers, insurance companies, among others.
These institutions are responsible for capturing resources from savers and lending them to borrowers, charging an interest rate for the service. They also provide a variety of financial services such as investment management, financial consulting, insurance, among others.
4. Settlement and Custody Systems
Settlement and custody systems are responsible for registering, clearing and settling financial transactions carried out in the market. They ensure the security and efficiency of financial transactions, reducing counterparty risk and facilitating the flow of funds between market participants.
In Brazil, the main settlement and custody systems are the Clearing and Custody Clearinghouse (CETIP), the Brazilian Clearing and Custody Company (CBLC) and the Active Market Operator Society (SOMA).
In short, the structure of the National Financial System is complex and multifaceted, involving a variety of institutions and mechanisms that work together to facilitate financial intermediation and promote financial stability. For those preparing for public tenders in the financial area, it is essential to have a solid understanding of this structure and how it works.
