Investor Presentaiton
Annual Report
AR
2022
SUMMARY
WHO WE
ARE
OUR
STRENGTH
AND
OUR
RESOURCES
OUR
RESULTS
Agenda BC#
Regulatory Result Assessment of the
implementation of cap on the interchange fee for
debit cards
With the aim of improving the regulatory process and
contribute to its effectiveness, efficiency, and efficacy, the
BCB has carried out a Regulatory Result Assessment (RRA)
on the effects arising from the implementation of caps
for the interchange fee charged within the scope of debit
card schemes that are participants of the Brazilian Payment
System (SPB).
The RRA verified the impacts of regulatory acts, considering
the scope of the intended objectives and other impacts
observed on the market and society in view of their
implementation.
The RRA shows that the average merchant discount rate
(MDR) charged in debit card transactions decreased after
the BCB established the cap on the interchange fee. The
pass-through of the reduction in the interchange fee to the
MDR encouraged merchants to reduce prices charged to
consumers for debit card purchases. There is no evidence
that the regulation has contributed to increased debit card
use. In addition, there is evidence that issuers incurred
a reduction in revenue earned per active debit card,
considering the cap in the interchange fee. Finally, there
was no evidence of increased fees charged to the acquirer
by the networks following the regulation.
The importance of this evaluation resides in the vast
repercussions on the country's economy, since the definition
of caps for the interchange fee aims to encourage the
reduction of prices charged to the consumer in purchases
with a debit card, affecting the choice of final consumers
towards the use of cheaper payment instruments.
Brazil's adherence to the OECD Liberalization
Codes
In May 2022, Brazil was invited to adhere to the two
founding OECD instruments: the Code of Liberalization
of Capital Movements and the Code of Liberalization of
Current Invisible Operations.
These codes are instruments that have been in force since
the foundation of the OECD, in 1961. The first document
covers recommendations for regulating the international
financial flow, including payments, transfers, loans,
investments, in addition to the purchase and sale of foreign
currency. The other, in turn, basically encompasses the
provision of cross-border services - such as consultancy,
law, and architecture services.
The two liberalization codes consolidate recommendations
resulting from decades of studies and are based on
principles of non-discrimination and transparency, among
others.
The Council's approval of the Brazilian adherence to the
codes does not imply an obligation for Brazil to promote
the full adoption of all recommendations and parameters
contained in these instruments. No OECD member country
has adhered to all the Codes' recommendations.
Adherence to the codes, even with reservations, protects
Brazil against discrimination by another member country.
In addition, Brazil gains an appeal instance to question
the disproportionate weight of a measure from another
nation. It also gains the ability to influence and vote in the
Investment Committee.
As mentioned previously, in January 2022, Brazil received
an invitation letter from the OECD to open discussions on
the accession process. Brazil is currently the non-member
country that has adhered to the largest number of OECD
instruments, having already adhered to 117 of the 266 legal
instruments in force.
OECD Principles on financial consumer protection
Brazil has adopted the High-Level Principles on Financial
Consumer Protection approved by the OECD, whose review
involved the participation of the BCB. The principles were
reviewed and approved by the OECD Council in December
2022, and two new ones were included: Access and Inclusion
and Quality Financial Products.
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