New Rules on Minimum Capital Requirements for Financial Institutions, Payment Institutions, and Other Entities Authorized to Operate by the Central Bank of Brazil
The Central Bank of Brazil (“BCB”) and the National Monetary Council (“CMN”) issued, on 3 November 2025, two regulations introducing significant changes to the financial sector regarding a new methodology and new procedures for determining the share capital and net worth of financial institutions, payment institutions, and other entities authorized to operate by the BCB. The new framework does not apply to consortium administrators or to non-profit associations/entities authorized to manage consortium groups, which remain excluded from these requirements.
The newly enacted rules—Joint Resolution No. 14 and BCB Resolution No. 517—shift the focus toward establishing minimum capital and net worth thresholds based on the actual activities performed by each institution, rather than solely on its institutional category, as is currently the case.
Previously, regulation prescribed a minimum share capital and net worth amount tied to the type of institution. Under the new framework, the applicable minimums will be determined based on operational cost and on the activities carried out or services provided by the institution.
The rules define specific values to be used in calculating operational cost and the activity-based component, which will jointly determine the institution’s minimum required share capital and net worth. In addition, the regulation introduces capital add-ons for certain cases, such as institutions that use the term “bank,” or any of its variations in Portuguese or a foreign language, in their corporate name.
According to the regulator, the new criteria constitute a meaningful step toward ensuring a more robust and adequate capital structure for institutions, thereby strengthening the stability of the Brazilian Financial System while remaining aligned with market operational practices.
Although the new rules are already in force, transitional provisions have been adopted to allow time for existing institutions—as well as those with pending applications for authorization or for expansion of activities—to comply. The transitional rules are as follows:
1. Until 30 June 2026, institutions must maintain the minimum paid-in share capital and net worth calculated under the rules in effect on the day immediately preceding the effective date of Joint Resolution No. 14; and
2. From 1 July 2026 to 31 December 2027, institutions must maintain the amount referred to in item (i), increased by the following percentages, applied to the positive difference between the amount calculated under Joint Resolution No. 14 and the amount indicated in item (i) above:
• 25% through 31 December 2026;
• 50% through 30 June 2027;
• 75% through 31 December 2027.
Finally, the new rules require all covered institutions to notify the BCB, by 30 June 2026, of the categories of operational activities they perform. This notification requirement also applies to institutions whose applications for authorization to operate or to expand activities were filed with the BCB on or before 3 November 2025.
