Covid-19 Pandemic Crisis and Macroprudential Policy Measures in Brazil

Fernanda Bandeira and José Ornelas

No 642, Working Papers Series from Central Bank of Brazil, Research Department

Abstract: This article investigates the impact of macroprudential measures adopted in response to the initial shock of the Covid-19 crisis in Brazil, aimed at preserving bank capital and maintaining the credit flow. The restricted macroprudential space motivated the adoption of ad-hoc measures: a partial release of the Capital Conservation Buffer (CCoB) and a temporary restriction on dividends´ payment for the whole 2020 fiscal year. Overall, results provide evidence that the policy space created by the partial release combined with dividends restrictions helped sustain credit while preserving solvency during the pandemic.

Date: 2026-04
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