Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 172

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 4
Chunk 172
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 whether any loans must be reclassified as a result of these minimum classifications. If so, they must adjust their regulated accounting provisions accordingly.
 The regulations specify a minimum provision for each category of loan (BR GAAP), which is measured as a percentage of the total amount of the loan and advance operation, as follows:
  
102 – Form 20-F 2024 | Bradesco
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Classification of Loan   Minimum Provision %
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AA                                         -
A                                        0.5
B                                          1
C                                          3
D                                         10
E                                         30
F                                         50
G                                         70
H (1)                                    100
 (1) Financial institutions must write off any loan six months after its initial classification as an H loan.
 Loans and advances of up to R$10,000 may be classified by the method used by the financial institution itself or the arrears criteria, described above. Classifications should be at least level A, according to the Central Bank of Brazil.
 Financial institutions must make their lending and loan classification policies available to the Central Bank of Brazil and their independent accountants. They are also required to submit information relating to their loan portfolio to the Central Bank of Brazil, together with their financial statements. This information must include:
 
·   a breakdown of the business activities and nature of borrowers;
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·   maturities of their loans; and
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·   amounts of rescheduled, written-off and recovered loans.
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 The Central Bank of Brazil requires authorized financial institutions to compile and submit information on their portfolio of loans and advances.
 For further information about treatment of loans and advances, in accordance with IFRS Accounting Standards, see Note 40.2 to our consolidated financial statements in “Item 18. Financial Statements”.
 As of January 1, 2025, CMN Resolution No. 4,966/21 came into force with the main objective of improving credit risk assessment and aligning accounting practices with IFRS Accounting Standards. The implementation of CMN Resolution No. 4,966/21 primarily impacts the calculation of provisions for credit losses and other financial instruments based on expected loss. This resolution establishes a broader scope than CMN Resolution No. 2,682/99 and a more comprehensive forward-looking approach. The initial adjustments in adopting the resolution had a net effect, excluding fiscal effects, of approximately R$3 billion on Equity.
 
4.B.70.02-12 Exclusivity in loans and advances to