RegAlert

Rule · BCB · 15 Jun 1994 · Circular 2425

Circular No. 2425 — Establishes conditions for access to the "Bank Reserves" account

capital

Commercial banks, savings banks, and institutions holding a commercial portfolio must conduct all Central Bank fund movements through the "6115.10.10-9 - Bank Reserves" account. Other financial institutions lacking direct access must route transactions via these eligible entities under agreements submitted to the regulator, ensuring entries are challenged by the holding institution by the first business day following the transaction. Non-eligible institutions must close existing "Bank Reserves" accounts within thirty days of publication and formalize such agreements. This Circular replaces Circulars Nos. 492, 1,197, and specific provisions of Circular No. 902.

BrazilBanco Central do Brasil

CIRCULAR NO. 002425

Establishes conditions for access to the "Bank Reserves" account.

The Board of Directors of the Central Bank of Brazil, in a session held on June 15, 1994, having regard to the provisions of Article 10, items III and IV, of Law No. 4,595, of December 31, 1964, with the wording given by Articles 19 and 20 of Law No. 7,730, of January 31, 1989,

D E C I D E D:

Article 1 All movement of funds between the Central Bank and financial institutions shall be made through the "6115.10.10-9 - Bank Reserves" account.

Paragraph 1 It is exclusive to commercial banks, savings banks, and institutions holding a commercial portfolio to access the "6115.10.10-9 - Bank Reserves" account.

Paragraph 2 The other financial institutions, which do not have access to the "6115.10.10-9 - Bank Reserves" account, must necessarily effect the movement of funds with the Central Bank through the aforementioned account of a commercial bank or institution holding a commercial portfolio, via an agreement between the parties and submitted to this Body.

I - The agreement celebrated for this purpose does not imply any responsibility of the institution holding the aforementioned account towards the Central Bank, provided that the entries made as a result of this agreement are challenged by it until the first business day following that on which they were made.

Article 2 The "Bank Reserves" accounts currently held by institutions that are not commercial banks, savings banks, or holders of a commercial portfolio shall be closed within a period of 30 (thirty) days from the publication of this Circular, and the agreements referred to in paragraph 2 shall be formalized.

Article 3 This Circular enters into force on the date of its publication.

Article 4 Circulars Nos. 492 and 1,197, respectively dated January 7, 1980, and June 25, 1987, and paragraph 3 of Circular No. 902, dated December 13, 1984, are hereby repealed.

Brasília, June 15, 1994

Alkimar Ribeiro Moura Gustavo H. B. Franco Director of Monetary Policy Director of International Affairs

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Annotations and obligations
4 obligations · 4 definitions
  • Obligation 4
  • Definition / condition 4
  • background, boilerplate

Lineage: In force

Law No. 4595 dated 1964-12-31Law No. 4595 dated 1964-12-31Law No. 7730 dated 1989-01-31Law No. 7730 dated 1989-01-31Circular No. 1197 — Refinancing…1987Circular No. 1197 — Refinancing Instituted by Resolution 1335 of June 10, 1987: Determination That Fund Movements Between the Central Bank and Financial Institutions Without a 'Bank Reserves' Account Must Be Effected Through a Commercial Bank's 'Bank Reserves' Account (1987-06-25)Circular No. 492 dated 1980-01-…Circular No. 492 dated 1980-01-07Circular No. 902 dated 1984-12-…Circular No. 902 dated 1984-12-13Circular No. 2425 —Establishes conditions for ac…1994-06-15 · this documentCircular No. 2425 — Establishes conditions for access to the "Bank Reserves" account (1994-06-15)Circular No. 2608 — Redefines R…1995Circular No. 2608 — Redefines Rules for Mandatory Reserve Collection Based on Savings Deposits (1995-08-24)Resolution CMN No. 2194 — Estab…1995Resolution CMN No. 2194 — Establishes New Fine Values and Criteria for Application by the Central Bank of Brazil (1995-08-31)Circular No. 2758 — Establishes…1997Circular No. 2758 — Establishes procedures for the collection under Article 9, paragraph 1, of Resolution No. 1,980/93 and alters remuneration of resources corresponding to letters of credit collected by the Central Bank (1997-05-23)
amendssupersedesissued underrefers toproposed or not in RegAlertarrows run from the older text to the one that changes it

Timeline

This document supersedes: Circular No. 1197 — Refinancing Instituted by Resolution 1335 of June 10, 1987: Determination That Fund Movements Between the Central Bank and Financial Institutions Without a 'Bank Reserves' Account Must Be Effected Through a Commercial Bank's 'Bank Reserves' Account

What changed in the obligations

Against Circular No. 1197 — Refinancing Instituted by Resolution 1335 of June 10, 1987: Determination That Fund Movements Between the Central Bank and Financial Institutions Without a 'Bank Reserves' Account Must Be Effected Through a Commercial Bank's 'Bank Reserves' Account (1987-06-25)

1 new obligation

3 obligations are the same in both texts.

New in this text (1)
  • Article 2 The "Bank Reserves" accounts currently held by institutions that are not commercial banks, savings banks, or holders of a commercial portfolio shall be closed within a period of 30 (thirty) days from the publication of this Circular, and the agreements referred to in paragraph 2 shall be formalized. in this text

“Not carried over” means the sentence has no counterpart in this text; the rule can still be in force in another text.

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