Investor Presentaiton
Annual Report
AR
2022
SUMMARY
WHO WE
ARE
OUR
STRENGTH
AND
OUR
RESOURCES
OUR
RESULTS
Financial resources
OTHER MANAGED RESOURCES
Rural Credit Insurance Program (Proagro)
The Proagro is a federal government rural insurance
program that guarantees funding for agricultural costs
when the supported crop has its revenue reduced due to
climatic events or uncontrolled pests and diseases.
Proagro focuses mainly on small and medium-sized farmers,
within the coverage limit established in the regulations. It is
managed by the BCB, regulated by the CMN, and operated
by financial institutions such as banks and cooperatives.
International Reserves
International reserves are foreign currencies denominated
assets owned by Brazil that serve as a safety buffer for the
country to face its obligations abroad, as well as withstand
external shocks, such as currency crises and abrupt
interruptions of capital flows.
As Brazil adopts floating exchange rate regime, this buffer
helps to keep the proper functionality of the internal
foreign exchange market, enabling the mitigation of sharp
variations of the local currency, the Brazilian real, against
the dollar and providing greater predictability and safety
for market agents.
International reserves are mainly allocated in bonds, time
deposits in foreign currencies (dollar, euro, pound sterling,
yen, Canadian dollar, and Australian dollar), IMF's Special
Drawing Rights, time deposits at the Bank for International
Settlements, gold, among other assets. The allocation of the
international reserves follows three pillars, prioritized in this
order: safety, liquidity and profitability.
The BCB annually publishes the International Reserves
Management Report, which addresses aspects ranging
from the economic environment and governance,
to investment policy, risk management and reserve
management's performance evaluation.
Concluding the extrajudicial liquidations of
banks Banorte and Econômico
In 2022, the extrajudicial liquidation regimes of Banco
Banorte and Banco Econômico, which started in the 1990s,
were concluded. After Banco Banorte settled its debts
with the BCB and its qualified creditors, the BCB ended
the extrajudicial liquidation upon conversion to ordinary
liquidation. During the regime, Banco Banorte paid BRL 1.1
billion, in nominal value, to the BCB.
Banco Econômicohad its extrajudicial liquidation terminated
by transferring its share control, increasing capital and
changing the corporate name to Banco BESA S.A. During
the regime, the BCB collected, in nominal value, BRL 32.5
billion. A balance of BRL 1.6 billion remains to be paid by
Banco BESA S.A., subject to installments within a federal
tax recovery program (the so-called Refis das Autarquias).
This Installment Agreement signed by Banco BESA S.A.
represents the full recovery of funds deposited by the BCB
and the final settlement of liabilities with other creditors.
54
54View entire presentation