Circular No. 1098 — Mandatory Reserve on Savings Deposits: 20% Requirement and Monthly Collection

CIRCULAR NO. 001098

To
Real Estate Credit Companies, Savings and Loan Associations, and Savings Banks

We communicate that the Board of Directors of the Central Bank, in view of the provisions of Resolution No. 1,220, of November 24, 1986, has decided that the mandatory reserve referred to in item I of the aforementioned Resolution shall be remitted to the Central Bank, observing a rate of 20% (twenty percent), applied to the balances of monthly balance sheets, starting with the one referring to the month of November of this year.

2. The percentage referred to in the previous item shall be achieved by applying a rate of 25% (twenty-five percent) on the net monthly collections of resources.

3. The remittance of the mandatory reserve and the deposits referred to in items I and X of Resolution No. 1,220, of November 24, 1986, shall be made on the 15th day of the month following the month in which the position was determined, or on the immediately subsequent business day if the 15th is not a business day.

4. The statements of the mandatory reserve due, instituted by the Department of Banking Operations, shall be delivered to this Body by the business day preceding the date fixed in accordance with the previous item.

5. The remuneration referred to in item II of Resolution No. 1,220, of November 24, 1986, shall be calculated taking into account the values maintained in deposits in this Body daily from December 15, 1986, as well as the daily yield of Central Bank Notes, increased by 8% per annum (eight percent per year), considering the period elapsed from the date of remittance (inclusive) until the date scheduled for the next remittance (exclusive).

6. The remuneration referred to in the previous item shall be made on the same date scheduled for the remittance of the mandatory reserve, it being established that, in the event of non-compliance with the provision of item 4 of this Circular, such remuneration shall be credited to a restricted account, until the delivery of the statement of the period to be adjusted, without right to any additional yield.

7. It is established that, while the percentage mentioned in item 1 of this Circular has not been reached, the release of the mandatory reserve already remitted shall not be admitted under any circumstances.

8. The pecuniary penalty provided for in item IX of Resolution No. 1,220, of November 24, 1986, shall be calculated daily based on the average "overnight" financing rate for federal securities operations (SELIC), increased by 15% per annum (fifteen percent per year), applied to the deficiency presented and debited, by notice, to the "Bank Reserves" accounts maintained by financial institutions with the Central Bank.

9. If the statement of exigibility is not delivered by the business day preceding the remittance date, this shall be made on the second business day following the date of delivery of the statement, with the application of the penalty provided for in item IX of Resolution No. 1,220, of November 24, 1986.

10. Observing the deadline established in item 3 of this Circular, the Central Bank Notes referred to in item III of Resolution No. 1,220, of November 24, 1986, shall be custodied in the Department of Operations with Securities and Financial Assets - DEMOB (Special Settlement and Custody System - SELIC), of this Body.

11. Real estate credit companies and savings and loan associations must maintain an agreement with a commercial bank that expressly authorizes the Central Bank to make all entries related to the remittances in question in their "Bank Reserves" account.

12. Circulars Nos. 997 and 1,064, of February 5, 1986, and August 27, 1986, respectively, are hereby revoked.

Brasília-DF, December 16, 1986

Persio Arida Luiz Carlos Mendonça de Barros Director Director