Investor Presentaiton

Annual Report AR 2022 SUMMARY WHO WE ARE OUR STRENGTH AND OUR RESOURCES OUR RESULTS Agenda BC# Regulatory Result Assessment (RRA) on Cooperative Auditing The cooperative audit is an additional line of defense to the traditional ones, to enable the increase of specialization and the integration of monitoring and control activities of the credit unions. They perform an activity that complements the task that is done by the BCB's supervision. In 2022, in addition to the RRA on debit card interchange fees, mentioned in the previous section, the BCB carried out another RRA on cooperative auditing. This RRA analyzed the effects of regulations that implemented cooperative auditing from 2015 on the credit union segment. The RRA revealed improved information on operational status and economic and financial soundness, as well as improved management and governance of credit unions. Regarding the supervised entities, governance has been strengthened, with qualitative evolution in the performance of the members of the boards of directors, supervisory boards, and senior management. The sustainable short-, medium-, and long-term growth planning of the credit unions has also been improved. Finally, for society, the market share of credit unions in the SFN increased, contributing to boosting competitiveness and the process of financial inclusion and education. The cooperative audit was essential for strengthening constant evaluation and correcting vulnerabilities previously identified by the BCB. Launching of the Cooperative Journey The learning trail on credit cooperativism, the "Cooperative Journey", was launched in 2022. It allows BCB's employees to broaden their knowledge about the fundamentals and functioning of credit cooperatives in Brazil. The Notions about Cooperativism course (Portuguese only) is open to any interested citizen. The content was developed by the BCB staff in partnership with the German Confederation of Cooperatives. New licensing regulation for financial institutions The licensing process for financial institutions has been simplified. The BCB consolidated all licensing requirements into a single framework to simplify and provide greater transparency to the process and standardize the requirements and conditions applicable to each license type. In addition to operating licenses, the new rules discipline and simplify processes related to cancellation of activities, change of ownership, split or merger, and change of name, among other topics. The changes in the licensing regulation will facilitate the proportional application of requirements to be met with the risk profile and complexity of the business. The new rules will lead to a reduction in the cost of compliance, and authorization proceedings will become faster. New Regulation on Foreign Exchange and International Capital The new regulation on foreign exchange and international capital, resulting from the recent enactment of a Foreign Exchange and International Capital Law, will increase legal certainty in foreign businesses and simplify procedures. In addition, this regulation will provide more agility to Brazilian citizens and companies in their transactions abroad, both in obtaining funding and in attracting foreign investment. The BCB received suggestions when preparing the infra- legal regulation. Contributions to the future regulation were collected in three steps. The first one was a public consultation on provisions related to the foreign exchange market and the definition of residence for the purposes of the Foreign Exchange and International Capital Law. A second public consultation involved a draft on foreign capital in Brazil earmarked to direct investment and at credit operations. A third and last consultation involved a regulatory proposal concerning capital abroad which belongs to residents. 92

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