Circular No. 2190 — Authorizes Early Settlement and Consolidates Provisions on Interbank Deposits

Circular No. 2190, of June 26, 1992

CIRCULAR NO. 2190

Authorizes Early Settlement and Consolidates Provisions on Interbank Deposits.

We communicate that the Board of Directors of the Central Bank of Brazil, in a session held on 25.06.92, in view of the provisions of Art. 4 of Decree-Law No. 2,290, of 21.11.86, Art. 3 of Law No. 7,801, of 11.07.89, Arts. 8 and 9 of Law No. 8,177, of 01.03.91, and item II of Resolution No. 1,647, of 18.10.89, decided to issue the following complementary norms regarding interbank deposits:

Art. 1. The amount of interbank deposits made by a depositor with each depository institution may not exceed 30% (thirty percent) of the net equity, adjusted in accordance with current regulations, of the depositor institution.

Art. 2. The amount of deposits received by a financial depository institution, whose maturity dates are less than 30 (thirty) days, may not exceed two and a half times the value of its net equity, adjusted in accordance with current regulations.

Sole Paragraph. When the depository institution is a development bank, the limit referred to in this article shall be one times the value of its net equity, adjusted in accordance with current regulations.

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 current regulations.

Art. 4. The limits provided for in Arts. 1, 2, and 3 of this Circular do not apply to deposits made between affiliated institutions or those subject to the same shareholding control.

Art. 5. The minimum term for deposits shall be:
I - 1 (one) day, when received by a financial institution and remunerated at fixed market rates; II - 30 (thirty) days, when received by a leasing company 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 in a price index, the series of which is regularly calculated and publicly known, freely agreed upon by the parties.

Sole Paragraph. The use of a remuneration basis or index that does not meet the conditions provided for in this article is prohibited with respect to the operations referred to in this Circular.

Circular No. 2190, of June 26, 1992

Art. 6. Institutions authorized to make interbank deposits may negotiate such deposits, observing the following conditions:
I - The operation must be contracted by the depositor, through the assignment of respective credit rights to an institution authorized to make interbank deposits; II - Negotiations of the respective deposits on their maturity dates will not be admitted; III - Early settlement of the deposits will be permitted, after the minimum terms stated in the previous article have been fulfilled.

Sole Paragraph. The provisions of this article do not apply to Interbank Deposits Linked to Rural Credit - DIR.

Art. 7. Interbank deposit operations must be registered and financially settled through the registration and financial settlement system for securities, administered by the Central Custody and Financial Settlement of Securities (CETIP).

Art. 8. The Central Bank will suspend the participation, in interbank deposit operations, of institutions that do not observe the limits fixed in this Circular.

Art. 9. This Circular enters into force on the date of its publication.

Art. 10. Circulars No. 1,905 and 1,906, both of 27.02.91, are hereby repealed.

Brasília (DF), June 26, 1992.

Gustavo Jorge Laboissière Loyola
Director

This text does not replace the published version in the DOU and Sisbacen.