Circular No. 3,528

CIRCULAR No. 003528 ------------------ Amends Circular No. 3,091 of 1 March 2002, and Circular No. 3,144 of 14 August 2002, which deal with the compulsory reserve requirement and the mandatory deposit on time deposits and the additional requirement on deposits, and Circular No. 3,520 of 6 January 2011, which deals with the compulsory reserve requirement and the mandatory deposit on short foreign exchange position. The Board of Governors of the Central Bank of Brazil, in a meeting held on 16 March 2011, having regard to the provisions of art. 10, items III and IV, of Law No. 4,595 of 31 December 1964, and Resolution No. 1,857 of 15 August 1991, D E C I D E D: Art. 1 The art. 5 of Circular No. 3,091 of 1 March 2002, shall henceforth have the following wording: "Art. 5 The requirement, calculated as per art. 4, shall be deducted from one of the following portions: I - R$3,000,000,000.00 (three billion reais), for independent financial institutions or those belonging to a financial conglomerate whose Tier I of the Reference Equity (PR) is less than R$2,000,000,000.00 (two billion reais); II - R$2,000,000,000.00 (two billion reais), for independent financial institutions or those belonging to a financial conglomerate whose Tier I of the PR is equal to or greater than R$2,000,000,000.00 (two billion reais) and less than R$5,000,000,000.00 (five billion reais); III - R$1,000,000,000.00 (one billion reais), for independent financial institutions or those belonging to a financial conglomerate whose Tier I of the PR is equal to or greater than R$5,000,000,000.00 (five billion reais) and less than R$7,000,000,000.00 (seven billion reais); and IV - zero, for independent financial institutions or those belonging to a financial conglomerate whose Tier I of the PR is equal to or greater than R$7,000,000,000.00 (seven billion reais). § 1 For the purposes of the deduction referred to in this article, the last available position of the amount corresponding to Tier I of the PR shall be considered, whose regulatory deadline for submission has expired, calculated as established by Resolution No. 3,444 of 28 February 2007, and reported to the Central Bank of Brazil through the Statement of Operational Limits (DLO) - Document 2041. § 2 For financial institutions starting operations, the amount corresponding to Tier I of the PR shall be considered zero while there is no available position under the terms of § 1 of this article. § 3 Financial institutions whose requirement is equal to or less than R$500,000.00 (five hundred thousand reais) are exempt from complying with the requirement referred to in this circular. § 4 Financial institutions exempt from the reserve requirement referred to in this circular are not released from providing information under the terms of art. 8." (NR) Art. 2 The art. 4-A of Circular No. 3,144 of 14 August 2002, shall henceforth have the following wording: "Art. 4-A The additional requirement, calculated as per art. 2, shall be deducted from
one of the following portions: I - R$3,000,000,000.00 (three billion reais), for independent financial institutions or those belonging to a financial conglomerate whose Tier I of the Reference Equity (PR) is less than R$2,000,000,000.00 (two billion reais); II - R$2,000,000,000.00 (two billion reais), for independent financial institutions or those belonging to a financial conglomerate whose Tier I of the PR is equal to or greater than R$2,000,000,000.00 (two billion reais) and less than R$5,000,000,000.00 (five billion reais); III - R$1,000,000,000.00 (one billion reais), for independent financial institutions or those belonging to a financial conglomerate whose Tier I of the PR is equal to or greater than R$5,000,000,000.00 (five billion reais) and less than R$7,000,000,000.00 (seven billion reais); and IV - zero, for independent financial institutions or those belonging to a financial conglomerate whose Tier I of the PR is equal to or greater than R$7,000,000,000.00 (seven billion reais). § 1 For the purposes of the deduction referred to in this article, the last available position of the amount corresponding to Tier I of the PR shall be considered, whose regulatory deadline for submission has expired, calculated as established by Resolution No. 3,444 of 28 February 2007, and reported to the Central Bank of Brazil through the Statement of Operational Limits (DLO) - Document 2041. § 2 For financial institutions starting operations, the amount corresponding to Tier I of the PR shall be considered zero while there is no available position under the terms of § 1 of this article. § 3 Financial institutions whose additional requirement is equal to or less than R$500,000.00 (five hundred thousand reais) are exempt from complying with the requirement referred to in this circular." (NR) Art. 3 The arts. 3 and 5 of Circular No. 3,520 of 6 January 2011, shall henceforth have the following wording: "Art. 3 ............................................. ....................................................... II - the amount corresponding to Tier I of the Reference Equity (PR), calculated as per art. 6." (NR) "Art. 5 ............................................. ....................................................... II - the amount corresponding to Tier I of the PR, calculated as per art. 6." (NR) Art. 4 The art. 6 of Circular No. 3,520 of 6 January 2011, shall henceforth have the following wording: "Art. 6 For the purposes of the deduction referred to in arts. 3 and 5, the last available position of the amount corresponding to Tier I of the PR shall be considered, whose regulatory deadline for submission has expired, calculated as established by Resolution No. 3,444 of 28 February 2007, and reported to the Central Bank of Brazil through the Statement of Operational Limits (DLO) - Document 2041. Sole paragraph. For financial institutions starting operations, the amount corresponding to Tier I of the PR shall be considered zero while there is no position
available under the terms of the caput of this article." (NR) Art. 5 This circular enters into force on the date of its publication, producing effects from: I - 4 April 2011, for the compulsory reserve requirement and mandatory deposit on short foreign exchange position; and II - the calculation period beginning on 20 June 2011 and ending on 24 June 2011, whose adjustments will occur on 1 July 2011, for the compulsory reserve requirement and mandatory deposit on time deposits, and on 4 July 2011, for the additional requirement on deposits. Art. 6 Carta-Circular No. 3.434, of 15 March 2010, is revoked. Brasília, 23 March 2011. Aldo Mendes Luiz Awazu Pereira da Silva Director of Monetary Policy Director of International Affairs