Circular No. 2240 — Provisions Regarding Compliance with Risk Diversification Limits for Financial Institutions and Other Institutions Authorized by the Central Bank

CIRCULAR NO. 002240

PROVISIONS REGARDING COMPLIANCE WITH THE RISK DIVERSIFICATION LIMIT TO WHICH FINANCIAL INSTITUTIONS AND OTHER INSTITUTIONS AUTHORIZED TO OPERATE BY THE CENTRAL BANK ARE SUBJECT.

WE COMMUNICATE THAT THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BRAZIL, IN A SESSION HELD ON 07.10.92, BASED ON ITEM X OF RESOLUTION NO. 1,559, OF 22.12.88, AND ARTICLE 3 OF RESOLUTION NO. 1,948, OF 29.07.92, DECIDED:

ART. 1. WHEN DEALING WITH THE PARTICIPATION OF FINANCIAL INSTITUTIONS AND OTHER INSTITUTIONS AUTHORIZED TO OPERATE BY THE CENTRAL BANK IN A PRIMARY PLACEMENT PROCESS OF SECURITIES, COMPLIANCE WITH THE RISK DIVERSIFICATION LIMIT REFERRED TO IN ITEM III OF RESOLUTION NO. 1,559, OF 22.12.88, AND ARTICLE 1 OF RESOLUTION NO. 1,948, OF 29.07.92, WILL ONLY BE REQUIRED AFTER THE END OF THE DISTRIBUTION PERIOD, WITH THE ELIMINATION OF ANY EXCESS ALLOWED IN THE FOLLOWING MANNER:

I - 50% WITHIN A MAXIMUM PERIOD OF THIRTY DAYS COUNTED FROM THE DATE OF THE END OF THE SAID PERIOD;

II - 100% WITHIN A MAXIMUM PERIOD OF SIXTY DAYS COUNTED FROM THE DATE OF THE END OF THE SAID PERIOD.

ART. 2. THIS CIRCULAR ENTERS INTO FORCE ON THE DATE OF ITS PUBLICATION.

BRASÍLIA (DF), OCTOBER 7, 1992

GUSTAVO JORGE LABOISSIÈRE LOYOLA
DIRECTOR