Brazil Regulator Plans Bank ABS Rules

Comissão de Valores Mobiliarioshas proposed new rules for Brazil’s asset-backed fund industry,Bloombergreports. The Brazilian securities regulator’s new rules would require banks to disclose information about the loan payments and enable information about credit portfolios that back the funds to be included in central bank databases, which are used to monitor credit risk.

Banks administering the funds, backed by future cash flow and known as FIDCs, will be compelled to identify the original borrowers of loans that make up the assets of the funds. The Brazilian watchdog is seeking to improve the supervision of FIDCs.

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