Circular No. 2500 — Establishes complementary procedures for implementing Regulations annexed II and IV to Resolution No. 2,099 of August 17, 1994

CIRCULAR NO. 002500

Dispenses with complementary procedures necessary for the implementation of Regulations annexed II and IV to Resolution No. 2,099, of August 17, 1994.

The Board of Directors of the Central Bank of Brazil, in a session held on October 26, 1994, based on Article 7 of Resolution No. 2,099, of August 17, 1994,

DECIDED:

Article 1. The calculation of the value of paid-in capital and minimum net worth referred to in Regulation annexed II to Resolution No. 2,099, of August 17, 1994, shall follow the methodology provided in the document annexed to this Circular, observed also, with regard to the aforementioned Regulation annexed II, that:

I - the expression "carry out committed operations", contained in Article 1, item IV, refers to the qualification for carrying out operations of the kind provided for in Resolution No. 1,088, of January 30, 1986;

II - the head office or parent agency shall be considered in the computation of agencies for capitalization purposes;

III - in the case of installation of agencies in a number greater than that referred to in Article 2, the capital calculation shall be carried out considering, as a priority, for the purpose of computing the 10 (ten) agencies exempt from capitalization, those for which an increase of 1% (one percent) is required.

Article 2. For the purpose of calculating the limit of 70% (seventy percent) referred to in paragraph 2 of Article 1 of the aforementioned Regulation annexed II, only the branches for which an increase in capitalization is required under Article 2 of the same Regulation shall be considered.

Article 3. Institutions that adopt the calculation of the net worth value on a consolidated basis, as provided for in Article 4 of Regulation annexed IV to the aforementioned Resolution No. 2,099/94, shall also observe that:

I - the holding of the general assembly referred to in paragraph 2 of the cited Article 4 is waived when it concerns a wholly-owned subsidiary;

II - if the option provided for in the main text was used, the return to the non-consolidated calculation method shall also be the subject of a decision in an extraordinary general assembly and shall only be valid from the exercise following the option;

III - the use of the option provided for in this article must be communicated to this Central Bank/Department of Registration and Information (DECAD), with a minimum advance notice of one month.

Article 4. The option for centralization of accounting, referred to in the sole paragraph of Article 2 of Regulation annexed III to the aforementioned Resolution No. 2,099/94, refers to the use of a single "Daily Balances and Balance Sheets" or "Daily Book" for recording the accounting movements of agencies in the same municipality.

Sole Paragraph. In the event of adoption of the option referred to in this article, the accounting books must be maintained in a single agency, belonging to the same municipality, to be indicated by the institution.

Article 5. This Circular enters into force on the date of its publication.

Brasília, October 26, 1994

Cláudio Ness Mauch
Director of Standards and Organization of the Financial System

ANNEX

| Operation | Instructions | Value
-------------------------------------------------------------------- (1) | Basic Value (*) | According to the type of institution, among those provided for

	in items I to V of Article 1 of Regulation annexed II
	of Resolution No. 2,099/94

-------------------------------------------------------------------- (2) | (1) x 2 | In the case of an agency of a financial institution domiciled

	abroad or of a commercial bank or multiple bank with a commercial
	portfolio under foreign control, direct or indirect. If not the
	case, repeat the value of (1)

-------------------------------------------------------------------- (3) | (2) x 0.8 | In the case of a multiple bank. When not the case, repeat
| | the value of (2)

-------------------------------------------------------------------- (4) | (3) x 0.7 | In the case where the F.I. has its headquarters and, at least,

	70% of its branch network outside Rio de Janeiro (RJ) and
	São Paulo (SP). When not the case, repeat the value of (3)

-------------------------------------------------------------------- (5) | (4) + 0.01 x a x (4) | a = number of agencies located outside the states of RJ

	and SP, above the limit of 10. If not the case, repeat the
	value of (4)

-------------------------------------------------------------------- (6) | (5) + 0.02 x b x (4) | b = number of agencies located in the states of RJ and SP,

	above the limit of 10. If not the case, repeat the
	value of (5)

-------------------------------------------------------------------- (7) | (6) + 0.30 x c x (4) | c = number of agencies installed abroad. If not the
| | case, repeat the value of (6)

-------------------------------------------------------------------- (8) | (7) + 3,000,000.00 (*) | In the case where the institution operates in foreign exchange. If not the
| | case, repeat the value of (7)

-------------------------------------------------------------------- (*) - Value subject to update, according to paragraph 6 of Article 1 of Regulation annexed II to Resolution No. 2,099, of August 17, 1994.