DLO And Its Complexities In The COVID-19 Era

Financial institutions and other institutions authorized to operate by the Central Bank of Brazil must follow several rules for the construction of the Demonstrativo de Limites Operacionais (DLO) and face its complexity, which implies several challenges for Brazilian entities in an environment impacted by COVID- 19.

As well as many other regulatory reports that financial institutions must send to the Central Bank of Brazil, DLO is also being impacted by the new standards issued by the Central Bank due to the recent measures to reduce the impact of the effects of the pandemic on the functioning of the financial market.

DLO challenges for Brazilian entities in an environment impacted by COVID-19

Financial Institutions require a strong data architecture, integrity and parallel calculations that need a tight integration of finance and risk management functions. In terms of data capture, DLO is powered by several systems and the list of reports that integrates it, is a sample of how complex it is for financial institutions to build this report. The large amounts of data require a platform that allows an easy and consistent audit, and this is only part of the challenges that would be easy to face if they had the ideal architecture that encompasses those multiple approaches and a set of highly detailed rules, among other complexities.

In a time of rapid regulatory changes by COVID-19, it is even more important than ever that financial institutions have complete transparency in their data, calculations and all processes, and are prepared to manage the changes and comply with DLO in a transparent and efficient manner.

We invite you to learn more about the DLO, the challenges that come with it and how AxiomSL can help Financial Institutions in Brazil to efficiently address this complex report.

 

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