Circular No. 1543 — Interbank Deposits: Complementary Standards to Resolution No. 1,647 of October 18, 1989

CIRCULAR NO. 001543

INTERBANK DEPOSITS -
Complementary Standards to Resolution
No. 1,647, of October 18, 1989

We communicate that the Board of Directors of the Central Bank of Brazil, in a meeting held on October 24, 1989, having regard to the provisions of Article 4 of Decree-Law No. 1,454 of April 7, 1976, as amended by Article 4 of Decree-Law No. 2,290 of November 21, 1986, Article 3 of Law No. 7,801 of July 11, 1989, and item II of Resolution No. 1,647 of October 18, 1989, decided to issue the following complementary standards regarding interbank deposits:

a) the amount of deposits made by a depositer with each depositary institution may not exceed 30% (thirty percent) of the net equity, adjusted in accordance with the regulations in force, of the depositing institution;

b) the amount of deposits received by a depositary financial institution, whose maturity dates are less than 30 (thirty) days, may not exceed 2.5 (two and five-tenths) times the value of its net equity, adjusted in accordance with the regulations in force;

c) the amount of deposits received by a leasing company may not exceed 2.5 (two and five-tenths) times the value of its net equity, adjusted in accordance with the regulations in force;

d) the minimum term of deposits shall be:

I - 1 (one) day, when received by financial institutions and remunerated at fixed market rates;

II - 30 (thirty) days, when received by leasing companies or when updated according to the variation in the nominal value of the National Treasury Bond (BTN) or the value of the Fiscal BTN, or by a price index whose series is calculated regularly and is publicly known, freely agreed upon by the parties;

e) the limits set forth in items "a", "b", and "c" do not apply to deposits made between institutions subject to the same shareholding control or affiliated.

2. Securities brokers and dealers are authorized to intermediate the interbank deposit operations covered by this Circular, observing the following:

a) the deposit must be made by said companies, with simultaneous transfer of their respective credit rights, by assignment, to one of the entities cited in item "b" of item I of Resolution No. 1,647/89, with the former, in the capacity of assignor, being liable for the existence of the credit, but not for its payment;

b) the redemption value of the deposit subject to the assignment, to be released in favor of the assignee on its respective maturity date, must correspond to the exact value - principal plus interest - agreed upon by the assignor with the depositing institution;

c) no more than one intermediation of the same deposit will be admitted.

3. The operations carried out in accordance with the preceding item will be computed for observance, by the assignee institutions, of the limit fixed in item "a" of item 1 of this Circular.

4. Deposit operations must be registered and financially settled through the Central Custody and Financial Settlement of Securities (CETIP).

5. The Central Bank will suspend the participation, in interbank deposit operations, of institutions that do not observe the limits fixed in this Circular.

6. This Circular will enter into force on the date of its publication, with Circulars No. 1,024 of April 16, 1986, and No. 1,266 of December 18, 1987, and item 2 of Circular No. 1,510 of July 12, 1989, being revoked.

Brasília-DF, October 25, 1989

Keyler Carvalho Rocha Wadico Waldir Bucchi Director Director

Odilon Gomes de Oliveira
Acting Director