Circular No. 1220 — Regulates Resolution CMN 1378/87, Providing for Compulsory Collection and Mandatory Reserve Requirements for Commercial Banks, Investment Banks, Development Banks, and Savings Banks

CIRCULAR NO. 001220

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

We communicate that the Board of Directors of the Central Bank, in view of the provisions of Resolution No. 1,378, of 08/24/87, has decided to issue the following norms regarding the compulsory collection and mandatory reserve requirements provided for therein.

2. Financial institutions shall deposit with this Body, in cash, starting from 08/26/87, a value corresponding to a percentage of up to 30% (thirty percent) applied to the balance of their time deposits (excluding Interbank Deposit Certificates - CDI), including interest charges and monetary updates related to the time elapsed from the date of the deposit contract, calculated based on the balance sheet position from two months prior to the collection month.

3. The values collected in accordance with this Circular shall be maintained in a deposit in a specific account at this Body and, until the due date, shall earn remuneration, the rate of which will be periodically published.

4. A financial institution that presents a deficiency relative to the fixed requirement shall be subject to costs, the rate of which will be periodically published.

5. The remuneration provided for in item 3 and the cost referred to in the previous item shall be due on the second business day following the date of occurrence.

6. The Department of Banking Operations - DEBAN will periodically publish, at least two business days before its entry into force, the collection percentage referred to in item 2, as well as the remuneration and cost rates provided for in items 3 and 4 of this Circular.

7. All movement of resources related to the collection referred to shall be carried out through the "Bank Reserves" account maintained by institutions with the Central Bank.

8. Financial institutions that do not have a "Bank Reserves" account shall enter into an agreement with a commercial bank that expressly authorizes the Central Bank to make the entries referred to in the previous item in their account.

9. The Department of Banking Operations - DEBAN will, when appropriate, publish the accounting titles to be considered for the calculation of the requirements of the institutions.

Brasília-DF, August 24, 1987

Wadico Waldir Bucchi Alkimar Ribeiro Moura Director Director

Luiz Aranha Corrêa do Lago
Director