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On May 5, 2026, the Brazilian Central Bank (Banco Central do Brasil) published Resolution CMN No. 5.302, which amends the annex to Resolution CMN No. 4.995 of March 24, 2022. The resolution updates annual credit operation limits that financial institutions and other entities authorised to operate by the Central Bank must observe when contracting credit operations with public sector bodies. The amended resolution establishes differentiated credit limits for 2026 based on the type of public entity and operation. For operations with Union guarantee, the limit is set at R$5,000,000,000. For operations without Union guarantee for state, federal district, and municipal entities, the limit is R$5,000,000,000. The total combined limit for 2026 is R$23,625,000,000. Additionally, specific limits apply to targeted programmes and entities: R$1,800,000,000 for operations under the New Growth Acceleration Programme (Novo Programa de Aceleração do Crescimento – PAC); R$1,700,000,000 for additional PAC operations; R$1,500,000,000 for public-private partnership (Parcerias Público Privadas – PPPs) contracts; R$625,000,000 for Union entities; and R$8,000,000,000 for the Brazilian Postal and Telegraph Company (Empresa Brasileira de Correios e Telégrafos – Correios). The resolution applies to all financial institutions and authorised entities conducting credit operations with public sector bodies. The amendment entered into force on the date of publication, May 7, 2026, in the Official Gazette of the Union (Diário Oficial da União). **Reference:** Resolution CMN No. 5.302, May 5, 2026, published in the Official Gazette of the Union on May 7, 2026.

On May 7, 2026, the Board of the Financial Market Commission approved a series of structural adjustments intended to streamline the regulator’s supervisory and regulatory functions and improve institutional agility. The reforms include: the merger of the General Directorates of Market Conduct Regulation and Prudential Regulation into a unified General Directorate of Regulation; the creation of a Licensing Area reporting directly to the Council through the consolidation of Prudential Licensing and Conduct Licensing functions; the establishment of a Prudential Insurance Regulation Directorate; and the reassignment of the international area to the General Directorate of Studies. According to the CMF, the changes are intended to improve the balance and execution of its supervisory mandates while enabling the regulator to respond more effectively to evolving financial market challenges. The regulator stated that the restructuring also reflects international recommendations associated with the “twin peaks” supervisory model, under which prudential and market conduct supervision functions remain separated while regulatory functions are integrated to support consistent processes and criteria. The reforms take effect on May 8, 2026.

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Brazil's Central Bank Updates Annual Credit Operation Limits for Public Sector Entities

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Chile Financial Market Commission Approves Structural Reorganization to Streamline Regulatory Functions