Politics · Brazil · 1 hr ago
Brazil’s lower house rejects proposed bank-resolution rules
Brazil’s lower house rejected a bill to change how troubled financial institutions are handled.
The vote totals differ between accounts, but both say the proposal failed to get enough support.
The bill would have given the Central Bank new tools to manage bank crises, including systems for stabilizing or winding down institutions.
A provision could have let the Central Bank require the FGC to lend to troubled banks.
That raised attention because the Banco de Brasília, or BRB, is seeking a R$6.6 billion loan from the FGC, though the bill’s possible benefit to the bank was described as a possibility.
The proposal also said public money would be used only after other funding options were exhausted.
The bill is archived, and its progress in Congress has ended.
Brazil’s lower house rejected a bill to change the country’s bank-resolution rules on Wednesday, October 14.
The proposal would have created stabilization and compulsory liquidation regimes for financial institutions.
Reports gave different vote counts: CNN Brasil said 272 votes in favor and 176 against, while Estadão said the bill received 252 votes, below the 257 needed.
The bill included a provision that could allow the Central Bank to require the Credit Guarantee Fund to lend to troubled banks.
The proposal was sent to Congress in 2019 and is now archived after its rejection.
- Who
- Brazil’s Chamber of Deputies rejected the bill.
- What
- A bill to change bank-resolution rules was rejected.
- When
- Wednesday, October 14; the sources were published in 2026.
- Where
- Brazil’s lower house, the Chamber of Deputies.
- Why
- It did not receive the votes required for approval.
This story does not have two clearly opposing sides.
The federal government sent the bank-resolution bill to Congress.
The bill’s consideration in the Chamber was postponed.
The Chamber of Deputies rejected the bill.
- Bill number
- Complementary Law Project 281
- Vote count reported by CNN Brasil
- 272 in favor; 176 against; 276 required
- Vote count reported by Estadão
- 252 votes; 257 required
- Proposed fund
- A Resolution Fund to operate alongside the Credit Guarantee Fund (FGC)
- Related bank
- Banco de Brasília (BRB) was seeking a R$ 6.6 billion loan from the FGC
3 sources
What people are saying
What we are proposing is that the Central Bank can intervene both in the FGC and in the equalization regime before reaching the liquidation of a particular bank.
What legal case allows you to block a person's assets without fault or intent?