Brazil Economy Profile 2012

The National Financial System (SFN) can be understood as a set of instruments, mechanisms and institutions that drive the capabilities of the savings (the act of saving, not the savings book itself) for investment. In other words, they enable the transfer of money part the sectors that contain the resources to the parties that want or need funds. The SFN is composed of normative agencies that regulate amount components of the system, the supervisory bodies that oversee the compliance, inclunding the operators, who put into practice amount financial transactions available. Amount these bodies are segmented into major markets:

Money market

It is where most operations to control money supply and interest rates of short term happen. It aims to ensure the liquidity of the economy. The Central Bank of Brazil works in this market practicing the so-called monetary policy.

Credit market

It consists of financial and non-financial institutions that deliver short and medium term intermediation services for individuals or companies that need resources to consumption or capital. The Central Bank of Brazil is the major agency responsible for control, regulation and supervision of this market.

Capital market

Channels resources to medium and long-term business operations through the purchase and sale of securities, made between companies, investors and intermediaries. The Securities Commission is the major organ responsible for control, standardization and supervision of this market.

Foreign Exchange market

Is where foreign exchanges for real are traded. The Central Bank of Brazil is the responsible for government, supervision and control of exchange rate operations acting through its Foreign Exchange Policy.



See the current structure of the National Financial System

1st. Regulatory Bodies:

National Monetary Council (CMN), National Council of Private Insurance

(CNSP), Management Board of Pension Funds (CGPC).

2nd. Supervisors:

Central Bank of Brazil, the Brazilian Securities Commission (CVM), Superintendency of Private Insurance (Susep), Department of Supplementary Pension Funds (SPC).

3rd. Operators:

Financial Institutions, Stock Markets, Reinsurers, Insurance, Entities of Open Pension Funds, Entities Closed Pension Fund, Capitalization Companies.