SAO PAULO Dec 14 Brazil's central bank will
enact changes early next year to the way it oversees the banking
industry, in order to simplify regulation, its president said
late on Thursday.
Central Bank President Alexandre Tombini told a banking
seminar that the plan aimed to eliminate requirements for
information that was no longer useful in overseeing the
industry. He declined to detail the changes, but said they would
take effect next year.
"We intend to end the presentation of information that has
become redundant and does not contribute to the oversight of the
sector," Tombini said.
The decision came in the wake of a series of bank collapses
that have tarnished the central bank's credibility as a sector
watchdog. A flurry of central bank controls aimed at enhancing
oversight of the industry made it harder for smaller lenders to
comply with regulations, Antônio Carlos Bueno, president of
privately owned deposit guarantee fund FGC, said in June.
"As regulation and oversight of the financial industry
evolves, we also need to assess how efficient are our
processes," Tombini added.
Seven banks have been liquidated by the central bank over
the past two years - some of them because of accounting fraud
and others due to liquidity strains.