Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 243

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 5
Chunk 243
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 for it to be canceled or converted into common shares, at the discretion of the competent regulatory authority, upon the occurrence of an “activation event”.
  
155 – Form 20-F 2024 | Bradesco
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In Brazil, Basel III is being implemented through a set of rules issued by the CMN and Central Bank of Brazil, pursuant to the international schedule, which has been recommending the gradual adoption of the definitions and requirements of capital since 2013.
 In 2017, the BCBS approved the final reforms of Basel III. The reforms had two stages, the first one contemplated: (i) improving the quality of the regulatory capital; (ii) raising levels of capital; (iii) improving the measurement and weight of risks, including global standards of market risk, counterparty credit risk and securitization; (iv) the aggregation of macro-prudential elements, such as capital buffers in the regulatory framework; (v) a restriction for the excessive leverage of banks; and (vi) an introduction of the indicators of control of liquidity risk. The second step complemented the overall regulatory improvements, aiming to restore credibility in the calculation of risk-weighted assets (RWA) and allow greater comparability between financial institutions by means of: (i) an increase in the robustness and sensitivity to the risk of standardized approaches for credit risk, credit valuation adjustment (CVA) and operational risk; (ii) a restriction on the use of the internal model, with limits on certain parameters used to calculate the capital requirements for credit risk and removal of the use of approaches of the internal model for the risk of CVA and operational risk; (iii) the introduction of a leverage ratio buffer for important global banks (G-SIBs); and (iv) the replacement of the existing standard in Basel II with standard more sensitive to risk.
 BCB Resolution No. 84/21, as amended by BCB Resolution No. 328/23, establishes that financial institutions authorized to operate by the Central Bank of Brazil should prepare and forward to the Central Bank of Brazil, on a monthly basis, information regarding (i) exposures to market risk, (ii) exposures related to the calculation of the RWA for market risk, used for the purpose of calculating minimum requirements for RE, Tier I, Common Equity and Additional of Common Equity; and (iii) exposures to the risk of interest rate variation in instruments classified in the banking portfolio.
 In accordance with the rules set forth by the CMN Resolution No. 4