Financial institutions without authorization to operate as a bank are prohibited from using the terms “bank” or “bank” in their business names, brands, internet domains or any form of presentation to the public. The standard is part of a set of measures approved by the National Monetary Council (CMN) and comes into effect immediately.
Approved at the monthly CMN meeting on Thursday (27), the measure was only released by the Central Bank (BC) this Friday (28). According to the monetary authority, the restriction especially affects fintechs and technology companies that offer financial services, such as payment institutions or credit companies, but without a specific license to operate as a bank.
According to the BC, inappropriate use of nomenclature can lead customers to misinterpret the type of service provided.
“Institutions will be prohibited from using terms that suggest activity or type of institution, in Portuguese or in a foreign language, for which they do not have specific operating authorization,” stated the Central Bank, in a note.
The rule is detailed in Joint Resolution 17/2025 and applies to business name, trade name, brand, internet domain and any form of communication to the public. The determination also affects financial conglomerates: fintechs that are part of groups in which there is at least one authorized bank will be able to maintain the use of the denomination.
According to the BC, the standardization of nomenclature helps to reduce risks of interpretation on the part of users and reinforces transparency about which services each institution is authorized to offer. The measure also follows the advancement of fintechs in the market and the need for regulatory updates in the face of new business models in the national financial system.
Suitability deadlines
Institutions that are in disagreement must present to the BC, within 120 days, an adaptation plan containing procedures and implementation schedule. The maximum period for the adaptation to be completed is one year.
According to the BC Regulation director, Gilneu Vivan, the measure seeks to bring more clarity to consumers and reinforce the security of the financial system. “We have observed new business models in which the name used by the institution does not correspond to the authorized service. This can create confusion for the customer and risk for the system”, he stated.
Market impact
The monetary authority estimates that between 15 and 20 institutions will be affected. One of the best-known cases is Nubank, which has authorizations to act as a payment institution, credit company and securities broker, but not as a bank. The financial institution reported that it is analyzing the new regulations and that services continue to operate normally.
The rules were defined after a public consultation held from February to May this year. The topic had been discussed internally by the BC as part of an effort to standardize nomenclatures and expand supervision over financial institutions.
