Circular Letter No. 4.026

The Head of the Department of Banking Operations and Payment System (Deban), using the authority conferred upon him by art. 23, item I, subitem "a", of the Internal Regulations of the Central Bank of Brazil, annexed to Administrative Rule No. 84.287, of 27 February 2015, and in view of the provisions of arts. 5-B, 5-C and 5-D of Circular No. 3.916, of 22 November 2018,

R E S O L V E S :

Art. 1 For the provision of information relating to the reserve requirement on time deposits, addressed in Circular No. 3.916, of 2018, institutions must observe the following procedures:

• I – Institutions participating in the Reserve Transfer System (STR) with primary access via the National Financial System Network (RSFN): use the RSFN; and

• II – Other institutions: use the STR-Web application.

Art. 2 For the provision of information, the following codes from the Domain Dictionary associated with the Catalog of Services of the National Financial System must be used:

• I- Institutions participating in the STR with primary access via the RSFN: use the message "RCO0002 - IF informs Statement", from the RCO Services Group, contained in the Catalog of Services of the National Financial System, filling in the field "CodRCO" with the code "9- Time Deposits", observing the following codes from the Domain Dictionary:

  • a) CodItem 9001 - total balance of the account "4.1.5.10.00-9 Time Deposits", of Cosif (item V, art. 2 of Circular No. 3.916);

  • b) CodItem 9002- total balance of the account "4.3.1.00.00-8 Resources of Bills of Exchange", of Cosif (item VI, art. 2 of Circular No. 3.916);

  • c) CodItem 9003 - total balance of the account "4.3.4.50.00-2 Pledged Debenture Certificates", of Cosif (item VII, art. 2 of Circular No. 3.916);

  • d) CodItem 9004 - total balance of the account "4.2.1.10.80-0 Own-Issue Securities", of Cosif (item VIII, art. 2 of Circular No. 3.916);

  • e) CodItem 9005 - total balance of the account "4.9.9.12.20-7 Contracts of Assumption of Obligations - Linked to Operations Carried Out Abroad", of Cosif (item IX, art.2 of Circular No. 3.916);

  • f) CodItem 9024 – total balance of time deposits resulting from assistance or financial support operations contracted with funds or other mechanisms constituted by institutions of the National Financial System in the form of § 1 of art. 28 of Complementary Law No. 101, of 4 May 2000, including those addressed in art. 12, item IV, of Complementary Law No. 130, of 17 April 2009;

  • g) CodItem 9025 - Updated outstanding balance of financings granted under the Emergency Employment Support Program, addressed in article 5-A of Circular 3.916, of 22 November 2018;

  • h) CodItem 9026 - Balance of Financial Letters of own issue repurchased by the issuing financial institution, addressed in the caput of article 5-B of Circular 3.916, of 2018, and which comply with the provisions of §7 of the same article; and

  • i) CodItem 9027 – total value of debentures acquired by the financial institution addressed in § 4 of article 5-B of Circular 3.916, of 2018;

• II - other institutions: use the STR-Web application, to inform the data provided for in item I.

§ 1 For CodItems 9025, 9026 and 9027, only the value informed referring to the last business day of the calculation period will be considered in the calculation of the deduction in the corresponding movement period.

§ 2 The values informed in Coditems 9026 and 9027 must correspond to the amount effectively paid in the acquisition or repurchase of the assets, while in possession of them.

Art. 3 The blocked balance of the reserve requirement on time deposits referred to in arts. 5-A and 5-B of Circular No. 3.916, of 2018, used for the application of deduction limits, corresponds to that of the end of the last business day of the calculation period.

Art. 4 The calculations of the deductibility deductions established in arts. 5-A and 5-B of Circular No. 3.916, of 2018, and consequently of the requirement to be collected, will be performed as follows:

DeducFopa = Lower value between (Pre_Exigível – DeducPR1 – SBLTEL; 15% x CodItem 9025)

DeducLF = Lower value between (CodItem 9026; CodItem 9027; Pre_Exigível – DeducPR1 – DeducFopa – SBLTEL; 15% x (Pre_Exigível – DeducPR1 – DeducFopa); Higher between (0; 30% x (Pre_Exigível – DeducPR1 – DeducFopa) – SBLTEL))

Requirement to be Collected= Pre-Exigível – DeducPR1 – DeducFopa – DeducLF

Where:

• Pre_Exigível = requirement without deductions, as per art. 4 of Circular 3.916, of 2018;

• SBLTEL = balance blocked as collateral for operations of the Special Temporary Liquidity Line (LTEL-Debentures) in reserve requirement on time deposits on the last day of the calculation period;

• DeducPR1 = deduction established in art. 5 of Circular 3.916, of 2018;

• DeducFopa = deduction used from the Emergency Employment Support Program, established in art. 5 A of Circular 3.916, of 2018;

• DeducLF = deduction used from repurchased own-issue Financial Letters, established in art. 5B of Circular 3.916, of 2018.

Art. 5 From the calculation period beginning on 4 May 2020, the deduction of repurchased own-issue Financial Letters must observe the provisions established in arts. 5-C and 5-D of Circular No. 3.916, of 2018, with no further need for the provision of information relating to CodItems 9026 and 9027.

Art. 6 The supporting documentation for the information subject to this Circular Letter, unless otherwise provided, must be kept at the disposal of the Central Bank of Brazil for a period of five years, counted from the date to which each information refers, under the terms of the provisions of art. 1 of Law No. 9.873, of 23 November 1999.

Art. 7 Circular Letter 4.021, of 7 April 2020, is revoked.

Art. 8 This Circular Letter enters into force on the date of its publication, producing effects from the calculation period of 13 to 17 April 2020, whose adjustment will occur on 27 April 2020.

Flávio Túlio Vilela