Circular No. 3.144

CIRCULAR N. 003144 ------------------ Establishes additional requirement on deposits. The Board of Directors of the Central Bank of Brazil, in a session held on 14 August 2002, having regard to the provisions of art. 10, items III and IV, of Law 4.595, of 31 December 1964, as amended by arts. 19 and 20 of Law 7.730, of 31 January 1989, in arts. 66 and 67 of Law 9.069, of 29 June 1995, in Resolution 1.857, of 15 August 1991, and in Resolution 3.009, of 14 August 2002, D E C I D E D: Art. 1 Establish additional requirement of compulsory reserve and mandatory deposit on deposits raised by multiple banks, investment banks, commercial banks, development banks, savings banks, credit, financing and investment companies, real estate credit companies and savings and loan associations, hereinafter referred to as additional requirement. Art. 2 The additional requirement shall correspond to the sum of the following portions, deducted of R$30,000,000.00 (thirty million reais), calculated on each business day of the calculation period: I - 3% (three percent) on the arithmetic average of the Amount Subject to Reserve - VSR related to time deposits, resources of exchange acceptances, pledge of debentures, securities of own issue and contracts of assumption of obligations linked to operations carried out abroad, established in art. 2 of Circular 3.091, of 1 March 2002; II - 5% (five percent) on the arithmetic average of the Amount Subject to Reserve -VSR related to resources of savings deposits, established in art. 2 of Circular 3.093, of 1 March 2002; and III - 3% (three percent) on the arithmetic average of the Amount Subject to Reserve - VSR related to demand resources, dealt with in articles 2 to 4 of Circular 3.134, of 10 July 2002. Sole paragraph. The calculation period comprises the business days of a week, starting on Monday and ending on Friday. Art. 3 The additional requirement must be fulfilled, in cash, by means of deposit in a specific account, on the business days of the second week following the end of the corresponding calculation period. Paragraph 1 The daily closing balance of the respective deposit account must correspond to 100% (one hundred percent) of the additional requirement. Paragraph 2 The deposit of the additional requirement must be made exclusively through an institution holding a Banking Reserves account, which shall command the respective transfer to the credit of the deposit account. Paragraph 3 The deposit account may be freely operated by the holding institution, to the credit of a Banking Reserves account of its free choice at each operation. Paragraph 4 The operation of the deposit account observes the time established for the functioning of the Reserve Transfer System (STR) of the Central Bank of Brazil. Paragraph 5 Financial institutions must comply with the additional requirement as from the position relating to the calculation period beginning on 12 August 2002 and ending on 16 August 2002. Art. 4 The daily closing balance
of the deposit account, at the Central Bank of Brazil, limited to the respective additional requirement, is entitled to remuneration calculated based on the Selic Rate, dealt with in art. 2 of Circular 2.900, of 24 June 1999, with the amendment introduced by Circular 3.119, of 18 April 2002, as follows: 1/252 R = S x [(1+Selic) - 1], where R = remuneration to be credited, expressed with two decimal places, with mathematical rounding; S = closing balance of the deposit account, limited to the respective requirement; Selic = annual Selic Rate, in unit format, expressed with four decimal places, referring to the date of the balance to be remunerated. Paragraph 1 The remuneration dealt with in the "caput" is credited to the respective deposit account at 16:30 of the following business day. Paragraph 2 The partial results of multiplication, division and exponentiation used in the algebraic expression of the remuneration calculation must contain eight decimal places, with mathematical rounding. Art. 5 The financial institution that fails to comply with the rules relating to the maintenance of balance in the deposit accounts at the Central Bank of Brazil, relating to the additional requirement, shall incur the payment of financial cost on each daily deficiency calculated (Cot), due on the business day following the date of the deficiency and calculated as follows: 1/252 1/252 Cot = [(1 + Selic) x (1 + r) -1] x dot, where: Cot = financial cost on each daily deficiency calculated, expressed with two decimal places, with mathematical rounding; Selic = annual Selic Rate, in unit format, expressed with four decimal places, of the day of the deficiency; r = addition to the Selic Rate, corresponding to 14% (fourteen percent) per year, expressed with four decimal places; dot = daily deficiency referring to the respective requirements on day "t", where dot = E - St, for all St < E, being that: St = closing balance of the respective deposit account on business day "t"; E = respective requirement in force on business day "t". Art. 6 The additional requirement is, exceptionally, reduced by 50% (fifty percent) in the calculation periods beginning on 12 and on 19 August 2002, whose adjustments shall occur, respectively, on 26 August and 2 September 2002. Art. 7 The financial institution subject to the additional requirement, not holding a Banking Reserves account, must indicate the financial institution holding a Banking Reserves account to which the charges pertaining to financial costs shall be sent, and to which eventual refunds shall be credited. Art. 8 The additional requirement shall be calculated by the Central Bank of Brazil based on the information already provided by the financial institutions for calculation of the VSRs. Art. 9 The Department of Banking Operations and Payment System - Deban is authorized to adopt the necessary measures for the operationalization of the provisions of this regulation. Art. 10. This circular enters into force on the date of
its publication, with effects from the calculation period of 12 to 16 August 2002, whose adjustment will occur on 26 August 2002. Brasília, 14 August 2002 Luiz Fernando Figueiredo Director