Circular Letter No. 1719 — Sets Criteria for Calculating Remuneration and Costs of Compulsory Deposit and Mandatory Reserve Deposits of Financial Institutions in the BCB Bank Reserves Account

Circular Letter No. 1,719, of September 11, 1987

CIRCULAR LETTER NO. 1,719

To Commercial Banks, Investment Banks, Development Banks, and Savings Banks

In view of the provisions of Resolution No. 1,378 and Circular No. 1,220, both dated August 24, 1987, and in complement to the provisions of Circular Letter No. 1,703, of the same date, we clarify that the calculation of remuneration and costs foreseen in items 3 and 4 of the aforementioned Circular will follow the following criterion:

Remuneration (item 3 of Circular No. 1,220, of August 24, 1987)

R = D . (F-1), where:

R = remuneration due, considering the result of the formula with two decimal places, abandoning the third and subsequent digits; D = value maintained in deposit with this agency, for the purpose in question, on the considered date (value limited to the maturity fixed for the date); and F = factor for calculating remuneration of Central Bank Letters on the considered date (obtained through SISBACEN - Central Bank Information System, transaction PTAX880, option 1, column "Daily Factor"), taken with eight decimal places;

Costs (item 4 of Circular No. 1,220, of August 24, 1987)

0.0039682539
C = (E — D) . [(1 + 1) - 1], where:

C = cost due, considering the result of the formula with two decimal places, abandoning the third and subsequent digits; E = maturity fixed for the date; D = as defined previously; i = rate fixed for costs, expressed in unitary form, per year, clarified, regarding the term (1 + i) 0.0039682539, that:
a) the indicated exponent corresponds to 1/252; and b) the factor (1 + i) 0.0039682539 – 1 must be considered with eight decimal places, abandoning the ninth and subsequent digits. Currently, as "i" corresponds to 0.07, such factor is 0.00026852.

Circular Letter No. 1,719, of September 11, 1987
2. In due course, we clarify that the maturity referred to in item 2 of the aforementioned Circular is recalculated based on the balance of time deposits ascertained in a new balance sheet (effective from the 1st business day of the month subsequent to the date fixed for the delivery of the position), and may also be modified due to any alteration in the percentage applied to the aforementioned balance, as provided in the initial item of that Circular.

Brasília (DF), September 11, 1987.
DEPARTMENT OF BANKING OPERATIONS
José Costa de Oliveira
CHIEF

This text does not replace the published version in the DOU and in Sisbacen.