Circular No. 1905 — Establishes Complementary Standards to Resolution No. 1,647 of October 18, 1989, Regarding Interbank Deposits

CIRCULAR NO. 001905

ESTABLISHES COMPLEMENTARY STANDARDS TO RESOLUTION NO. 1,647, OF 10.18.89, WHICH DEALS WITH INTERBANK DEPOSITS.

WE COMMUNICATE THAT THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BRAZIL, IN A MEETING ON 02.21.91, HAVING REGARD TO THE PROVISIONS OF ART. 4 OF DECREE-LAW NO. 2,290, OF 11.21.86, ART. 3 OF LAW NO. 7,801, OF 07.11.89, ARTS. 8 AND 9 OF PROVISIONAL MEASURE NO. 294, OF 01.31.91, AND ITEM II OF RESOLUTION NO. 1,647, OF 10.18.89, DECIDED TO ISSUE THE FOLLOWING COMPLEMENTARY STANDARDS ON INTERBANK DEPOSITS:

ART. 1. THE AMOUNT OF DEPOSITS MADE BY A DEPOSITOR WITH EACH DEPOSITORY INSTITUTION MAY NOT EXCEED 30% (THIRTY PERCENT) OF THE NET EQUITY, ADJUSTED IN ACCORDANCE WITH THE REGULATIONS IN FORCE, OF THE DEPOSITING INSTITUTION.

ART. 2. THE AMOUNT OF DEPOSITS RECEIVED BY A FINANCIAL DEPOSITORY INSTITUTION, WHOSE MATURITIES ARE LESS THAN 30 (THIRTY) DAYS, MAY NOT EXCEED TWO AND A HALF TIMES THE VALUE OF ITS NET EQUITY, ADJUSTED IN ACCORDANCE WITH THE REGULATIONS IN FORCE.

SINGLE PARAGRAPH. IN THE EVENT THAT THE DEPOSITORY INSTITUTION IS A DEVELOPMENT BANK, THE LIMIT SHALL BE ONE TIME THE VALUE OF THE NET EQUITY, ADJUSTED IN ACCORDANCE WITH THE REGULATIONS IN FORCE.

ART. 3. THE AMOUNT OF DEPOSITS RECEIVED BY A LEASING COMPANY MAY NOT EXCEED TWO AND A HALF TIMES THE VALUE OF ITS NET EQUITY, ADJUSTED IN ACCORDANCE WITH THE REGULATIONS IN FORCE.

ART. 4. THE LIMITS PROVIDED FOR IN ARTICLES 1, 2, AND 3 OF THIS CIRCULAR DO NOT APPLY TO DEPOSITS MADE BETWEEN AFFILIATED INSTITUTIONS OR INSTITUTIONS UNDER THE SAME SHAREHOLDER CONTROL.

ART. 5. 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 AND REMUNERATED AT FIXED MARKET RATES;

III - 90 (NINETY) DAYS, WHEN REMUNERATED BASED ON THE REFERENCE RATE - TR OR DAILY REFERENCE RATE - TRD;

IV - 360 (THREE HUNDRED AND SIXTY) DAYS, WHEN REFERENCED TO A PRICE INDEX, THE SERIES OF WHICH IS REGULARLY CALCULATED AND OF PUBLIC KNOWLEDGE, FREELY AGREED UPON BY THE PARTIES.

ART. 6. SECURITIES BROKERAGE AND DISTRIBUTION COMPANIES ARE AUTHORIZED TO INTERMEDIATE THE INTERBANK DEPOSIT OPERATIONS COVERED BY THIS CIRCULAR, OBSERVING THE FOLLOWING:

I - THE DEPOSIT MUST BE MADE BY SAID COMPANIES, WITH THE SIMULTANEOUS TRANSFER OF THE CORRESPONDING CREDIT RIGHTS, VIA ASSIGNMENT, TO ONE OF THE ENTITIES CITED IN ALINÉA "B" OF ITEM I OF RESOLUTION NO. 1,647/89, THE FORMER RESPONDING, IN THE CAPACITY OF ASSIGNORS, FOR THE EXISTENCE OF THE CREDIT, BUT NOT FOR ITS PAYMENT;

II - THE REDEMPTION VALUE OF THE DEPOSIT SUBJECT TO ASSIGNMENT, TO BE RELEASED IN FAVOR OF THE ASSIGNEE ON THE RESPECTIVE MATURITY DATE, MUST CORRESPOND TO THE EXACT VALUE - PRINCIPAL PLUS INTEREST - AGREED UPON BY THE ASSIGNOR WITH THE DEPOSITORY INSTITUTION;

III - NO MORE THAN ONE INTERMEDIATION OF THE SAME DEPOSIT SHALL BE ADMITTED.

ART. 7. THE OPERATIONS CARRIED OUT IN ACCORDANCE WITH THE PREVIOUS ARTICLE SHALL BE COMPUTED FOR COMPLIANCE, BY THE ASSIGNEE INSTITUTIONS, OF THE LIMIT FIXED IN ARTICLE 1 OF THIS CIRCULAR.

ART. 8. THE USE OF A REMUNERATION BASE OR INDEX THAT DOES NOT MEET THE CONDITIONS PROVIDED FOR IN THIS REGULATORY IS PROHIBITED IN RELATION TO THE OPERATIONS REFERRED TO IN THIS CIRCULAR.

ART. 9. DEPOSIT OPERATIONS MUST BE REGISTERED AND FINANTIALLY SETTLED THROUGH THE CENTRAL CUSTODY AND FINANCIAL SETTLEMENT OF SECURITIES (CETIP).

ART. 10. THE CENTRAL BANK WILL SUSPEND PARTICIPATION, IN INTERBANK DEPOSIT OPERATIONS, OF INSTITUTIONS THAT DO NOT OBSERVE THE LIMITS FIXED IN THIS CIRCULAR.

ART. 11. THIS CIRCULAR ENTERS INTO FORCE ON THE DATE OF ITS PUBLICATION.

ART. 12. CIRCULAR NO. 1,543, OF 10.25.89, IS HEREBY REVOKED.

BRASÍLIA (DF), FEBRUARY 27, 1991

GUSTAVO JORGE LABOISSIÈRE LOYOLA
DIRECTOR