backThe National Monetary Council (CMN) and the Central Bank of Brazil (BC) have approved new regulations that significantly raise the minimum capital requirements for financial and payment institutions. The changes aim to enhance the financial system’s resilience and mitigate risks associated with smaller institutions. Overall, the aggregate minimum capital requirement will increase from BRL 5.2 billion to approximately BRL 9.1 billion, with substantial adjustments for banks, credit companies, and fintechs. A gradual transition will take place, reaching full implementation in January 2028.
According to the Central Bank, the reform seeks to strengthen the soundness and stability of the financial system while preventing the misuse of fintechs for illicit activities such as money laundering. The new requirements are part of a stricter supervisory framework designed to balance competition between traditional institutions and new market entrants, ensuring the integrity of Brazil’s financial sector.
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