Brazil's central bank and CMN overhaul minimum capital rules for financial and payment institutions

The Banco Central do Brasil (BCB) and the National Monetary Council (CMN) issued Joint Resolution No. 14 on 3 November 2025, setting a new methodology for calculating the minimum paid-in capital and net worth that financial institutions and other institutions authorised by the BCB, including payment institutions, must maintain.

The resolution was approved by the BCB's Collegiate Board on 21 October and by the CMN at an extraordinary session on 30 October. It took effect on publication in the Official Gazette on 4 November. It repeals a series of earlier capital provisions, including the minimum capital articles of BCB Resolution 80 of 2021, which governs payment institutions.

COST AND ACTIVITY COMPONENTS

Under the new rules, an institution's minimum is the sum of two components. The cost component is R$2 million for each category of operational activity the institution carries out, plus R$5 million if it provides services dependent on data processing, network, cyber-security and other computing infrastructure, rising by 50% for each additional such service up to a cap of R$10 million.

The activity component adds R$1 million for services, R$3 million for custody and third-party asset administration, R$5 million for intermediation and R$7 million for credit granting, together with R$5 million or R$8 million depending on whether the institution's investment activity is classed as restricted or free. That total is then multiplied by a factor based on how the institution is funded, ranging from 60% for own funds to 200% for deposit-taking. Institutions allowed to use the word 'bank' in their name must add R$30 million. Because the components are additive, requirements depend on the number and type of activities an institution conducts.

PHASED TRANSITION

Institutions already operating keep their existing minimums until 30 June 2026 and must report their operational activity categories to the BCB by that date. From 1 July 2026 they must cover 25% of any shortfall against the new requirement by the end of 2026, 50% by 30 June 2027 and 75% by 31 December 2027, when the transition period ends.