Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 247

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 5
Chunk 247
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 market practices and regulatory requirements, observing additional impacts generated by stress scenarios, qualitative risks and risks not captured by the regulatory model.
 The results of our capital projections are submitted for evaluation by Senior Management, in accordance with established governance. In addition, the sufficiency of our regulatory capital is demonstrated by the periodic calculation of the Basel Index, Tier I Index and the Common Equity Index.
 
5.B.60 Recovery Plan for Systematically Relevant Financial Institutions
 Related to the ongoing process of adopting international regulatory best practices in Brazil, on June 30, 2016, CMN Resolution No. 4,502/16 was published, as amended, establishing the minimum requirements to be observed in the preparation and execution of recovery plans by financial institutions and other institutions authorized to operate by the Central Bank of Brazil. The main objective of CMN Resolution No. 4,502/16 is to restore adequate levels of capital and liquidity and preserve the feasibility of such institutions, thereby ensuring the resilience, stability and smooth operation of the national financial system. We are in compliance with all regulatory capital requirements.
 
5.B.70 Interest rate sensitivity
 Managing interest rate sensitivity is a key component of our asset and liability policy. Interest rate sensitivity is the relationship between market interest rates and net interest income due to the maturity or repricing characteristics of interest-earning assets and interest-bearing liabilities. For any given period, the pricing structure is considered balanced when an equal amount of these assets or liabilities matures or is repriced during that period. Any mismatch of interest-earning assets and interest-bearing liabilities is known as a gap position. A negative gap denotes loss sensitivity and normally means that a decline in interest rates would have a negative effect on net interest income. Conversely, a positive gap denotes gain sensitivity and normally means that a decline in interest rates would have a positive effect on net interest income. These relationships can change significantly from day to day, as a result of both market forces and Management decisions.
 Our interest rate sensitivity strategy takes into account:
 
·   rates of return;
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·   the underlying degree of risk; and
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·   liquidity requirements, including minimum regulatory banking reserves, mandatory liquidity ratios, withdrawal
                       and maturity of deposits, capital costs and additional demand for funds.                  
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 We monitor our maturity mismatches and positions and manage them within established limits. The positions are analyzed and reconsidered every second and fourth Friday of each month in our Treasury Executive Committee for Asset and Liability Management.
 The following table shows the maturities of our interest-earning