Stênio Ribeiro      Reporter Agência Brasil

Brasília – A Financial Stability Committee (“Comef”) has been created at the Central Bank consisting of the president and all the directors who will each have a vote. Department heads will also be part of the committee, but without voting rights (in this, the organization of the Comef is similar to that of the Monetary Policy Committee – Copom).

Whereas the mission of Copom is to set the country’s basic interest rate and protect the currency, the Comef’s mission will be to care for the general health of the country’s financial system. Comef will do that by keeping a close eye on credit markets and indebtedness, along with financial institutions themselves, so as to foresee problems in the financial system and deal with them.

Comef will be responsible for overseeing Central Bank action in the committee that regulates and oversees capital, insurance, pension fund and capitalization markets (“Comitê de Regulação e Fiscalização dos Mercados de Capitais, de Seguros, de Previdência e Capitalização – Coremec”), as well as similar national and international organizations. It will also regulate relations between the Central Bank (acting as monetary authority) and other institutions based on analysis of relevant information so as to ensure and maintain financial stability.

According to spokespersons at the Central Bank, the Comef will have regular meetings every 60 days, with the possibility of extraordinary meetings when necessary. “Comef will support the Central Bank’s mission of ensuring the stability of purchasing power of Brazil’s currency and keeping the country’s financial system sound and efficient,” said a spokesperson.

Allen Bennett – translator/editor The News in English - content modified

Link - Banco Central cria Comitê de Estabilidade Financeira