RegAlertRule · BCB · 5 Jan 1988 · Circular 1277
Circular No. 1277 — Brazilian Savings and Loan System (SBPE) — Mandatory Reserve on Savings Deposits
Savings and Loan Associations, Savings Banks, and Real Estate Credit Companies must collect a 15% mandatory reserve on monthly balance sheet balances starting January 1988. Collected resources are unavailable to depositing institutions, and excesses cover future collections. Institutions failing to meet the reserve percentage while reporting via "Mandatory Reserve Statement - MAPA 1" face blocked remunerations. Non-compliance triggers daily monetary penalties calculated on the deficiency using the Central Bank Letters - LBC Fiscal variation rate plus 30% annually, charged to the "Bank Reserves" account. This circular replaces specific items of Circular No. 1,098 of 16.12.86.
CIRCULAR NO. 001277
To
Savings and Loan Associations, Savings Banks, and Real Estate Credit Companies
We communicate that the Board of Directors of the Central Bank of Brazil, in a meeting held on 16.12.87, in view of the provisions of item VII of Resolution No. 1,220 of 24.11.86, decided that the mandatory reserve referred to in item I of the aforementioned Resolution shall be collected by this Agency, observing a rate of 15% (fifteen percent), applicable to the balances of monthly balance sheets, starting from the one referring to the month of January 1988.
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The percentage referred to in the previous item shall be achieved through the application of a rate of 40% (forty percent) on the monthly net collections of resources.
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The resources already collected shall be unavailable to the depositing institutions, and any excesses existing henceforth shall be used to cover the collections due in the next positions.
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Institutions that have not yet reached the percentage referred to in item 1 of this Circular, and that report their positions through the "Mandatory Reserve Statement - MAPA 1", established by Circular-Letter No. 1,715 of 08.09.87, shall have their mandatory reserve remunerations referred to in item 1 of Circular No. 1,135 of 27.02.87 blocked, which shall be considered for the purpose of classifying the entity in future positions, as provided in the previous item.
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Item 8 of Circular No. 1,098 of 16.12.86 is hereby amended, which shall henceforth read as follows:
"8. The monetary penalty provided for in item IX of Resolution No. 1,220 of 24.11.86 shall be calculated daily based on the variation rate of the Central Bank Letters - LBC Fiscal, or another title that replaces them, increased by 30% (thirty percent) per year, applicable to the deficiency presented and charged to the debit of the "Bank Reserves" account maintained by financial institutions with the Central Bank."
- This Circular shall enter into force on the date of its publication, with items 1, 2, and 7 of Circular No. 1,098 of 16.12.86 being revoked.
Brasília-DF, January 5, 1988
Wadico Waldir Bucchi Luiz Aranha Corrêa do Lago Director Director
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- Obligation 2
- Definition / condition 6
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Lineage: No known changes
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The links and the sentences they come from (1)
- Amends
- Circular No. 1098 — Mandatory Reserve on Savings Deposits: 20% Requirement and Monthly Collection1986 · BCB
“Item 8 of Circular No. 1,098 of 16.12.86 is hereby amended”
Mentions (3): 1 document this one mentions and 2 documents that mention it, without changing it
- Refers to
“established by Circular-Letter No. 1,715 of 08.09.87”
- Referred to by
“...with the new wording given by item 5 of Circular No. 1,277, of January 05, 1988.”
“...with the new wording given by item 5 of Circular Letter No. 1,277, of January 5, 1988.”
Timeline
This document amends: Circular No. 1098 — Mandatory Reserve on Savings Deposits: 20% Requirement and Monthly Collection
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