Capital and Risk Management

In order to ensure compliance with applicable laws, regulations, codes of conduct and rules, and adopt the best Risk, Capital, Control and Compliance Management practices, in line with the Basel recommendations, Law 9,613/98 and Resolutions 2,554/98, 3,380/06, 3,464/07, 3,721/09, 3,988/11 and 4,090/12, Banpará created the Control and Risk Management Superintendence (Sucor), the unit responsible for the Bank‘s Corporate Risk Management, Capital Management, Internal Controls, Compliance and Prevention of Money Laundering, linked to the Controllership, Planning and Investor Relations Department (DICOP).

Risk is defined as any situation that may affect the company‘s ability to achieve its goals.

The management of capital and corporate risks combines the Basel recommendations, the best practices adopted by the financial industry and internal and external rules aimed at generating systematized information which will serve as a basis for identifying, evaluating, measuring, mitigating and monitoring the various organizational risks.

In order to ensure the broad reach of the information from the area responsible for risk and capital management, as well as the implementation of mitigating actions in due time, the members of the top management and the installed committees receive reports prepared every two weeks, quarterly, semi-annually, annually or extraordinarily in situations of potential exposure to risks which demand immediate rectification.

Banpará has been constantly improving its corporate risk management, in an integrated manner, allowing the Bank to achieve its goals with an acceptable level of exposure to risks, without compromising its healthy performance.

Risk Management and Capital Management Structure

The Risk Management and Capital Management Structure includes:

  • Procedures that allow for the identification and assessment of the relevant risks incurred by the institution, including those not covered by the RWA;
  • Policies and strategies for managing capital as well as credit, market, liquidity, and operational risks, with guidelines aimed at maintaining the institution‘s capital compatible with the risks incurred, as well as with its appetite for risk;
  • Procedures for determining total RWA, and the portions of RBAN;
  • Procedures for determining the Regulatory Capital and the Additional Capital;
  • Procedures for determining the Capital Indexes and defining the minimum operating limits;
  • Procedures for determining the Leverage Ratio;
  • Procedures for preparing the Capital Plan;
  • Procedures for conducting stress tests which consider severe events and extreme market conditions and evaluating their impacts on capital;
  • Preliminary analysis of the risks of launching products/services and their adjustment to the procedures and controls adopted by the institution;
  • Preparation of periodic managerial reports on capital adequacy and the portions composing the RWA.