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.