Circular No. 3,823

The Board of Directors of the Central Bank of Brazil, in a session held on 20 January 2017, based on art. 10, items III and IV, of Law No. 4,595, of 31 December 1964, and in view of the provisions of Circular No. 3,529, of 29 March 2011,

R E S O L V E S :

Art. 1 The caput of art. 6 of Circular No. 3,632, of 21 February 2013, shall henceforth be in force with the following wording:

“Art. 6 The verification of compliance with the requirement is made based on the positions determined on each business day of the movement period, which begins on the Monday of the second week following the end of the calculation period and ends on the Friday of the subsequent week.” (NR)

Art. 2 The caput of art. 6 of Circular No. 3,569, of 22 December 2011, shall henceforth be in force with the following wording:

“Art. 6 The calculated requirement is in force from the Monday of the second week following the end of the calculation period, or the next business day, if the Monday is not a business day, until the subsequent Friday, and must be complied with in cash, by deposit into a specific account.” (NR)

Art. 3 The caput of art. 6 of Circular No. 3,090, of 1 March 2002, shall henceforth be in force with the following wording:

“Art. 6 The calculated requirement is in force from the Monday of the second week following the end of the calculation period until the Friday of the subsequent week.” (NR)

Art. 4 The art. 2 of Circular No. 3,655, of 27 March 2013, shall henceforth be in force with the following wording:

“Art. 2 ........................................................

• I - 0% (zero percent) on the arithmetic average of the Amount Subject to Deposit (VSR) related to the reserve requirement on time deposits, defined in accordance with the pertinent regulations in force;

............................................................” (NR)

Art. 5 The caput of art. 4 of Circular No. 3,569, of 2011, shall henceforth be in force with the following wording:

“Art. 4 The reserve requirement is calculated by applying the rate of 36% (thirty-six percent) to the calculation base referred to in art. 3.” (NR)

Art. 6 The art. 5 of Circular No. 3,569, of 2011, shall henceforth be in force with the following wording:

“Art. 5 ........................................................

• 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$3,000,000,000.00 (three 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$3,000,000,000.00 (three billion reais) and less than R$10,000,000,000.00 (ten 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$10,000,000,000.00 (ten billion reais) and less than R$15,000,000,000.00 (fifteen billion reais);

............................................................” (NR)

Art. 7 Circular No. 3,569, of 2011, shall henceforth be in force with the addition of the following art. 11-B:

“Art. 11-B The deposit referred to in art. 6 shall be made, from the compliance period beginning on 3 February 2017 until the compliance period ending on 27 December 2019, with deduction of the time-base amount, observing the following schedule:

• I - 100% (one hundred percent) of the amount referred to in the caput, until the compliance period ending on 29 December 2017;

• II - 50% (fifty percent) of the amount referred to in the caput, from the compliance period beginning on 2 January 2018 until the compliance period ending on 28 December 2018; and

• III - 30% (thirty percent) of the amount referred to in the caput, from the compliance period beginning on 31 December 2018.

Sole paragraph. The time-base amount is the deduction amount considered in the compliance of 20 January 2017, related to the operations listed in arts. 11 and 11-A of this Circular.” (NR)

Art. 8 For the deduction from the compliance with the reserve requirement on demand deposits established in Circular No. 3,745, of 23 January 2015, the demand-base amount shall be considered, from the compliance period beginning on 22 February 2017, for group A institutions, and from the compliance period beginning on 15 February 2017, for group B institutions, observing the following schedule:

• I - 100% (one hundred percent) of the amount referred to in the caput, until the compliance period ending on 29 December 2017, for group A institutions, and until the compliance period ending on 22 December 2017, for group B institutions;

• II - 50% (fifty percent) of the amount referred to in the caput, from the compliance period beginning on 2 January 2018 until the compliance period ending on 28 December 2018, for group A institutions, and from the compliance period beginning on 26 December 2017 until the compliance period ending on 21 December 2018, for group B institutions;

• III - 30% (thirty percent) of the amount referred to in the caput, from the compliance period beginning on 31 December 2018 until the compliance period ending on 27 December 2019, for group A institutions, and from the compliance period beginning on 24 December 2018 until the compliance period ending on 20 December 2019, for group B institutions; and

• IV - 0% (zero percent) of the amount referred to in the caput, from the compliance period beginning on 30 December 2019, for group A institutions, and from the compliance period beginning on 23 December 2019, for group B institutions.

Sole paragraph. The value used in the deductions for compliance with the requirements of 25 and 18 January 2017, respectively for institutions in groups A and B, is called the base value at sight.

Art. 9 The following are revoked:

• I - Circulars nos. 3,548, of 8 July 2011, 3,619, of 18 December 2012, and 3,659, of 25 June 2013;

• II - as from 3 February 2017, arts. 11 and 11-A, 12, 13, 14 and 15 of Circular No. 3,569, of 22 December 2011;

• III - as from 22 February 2017, Circular No. 3,745, of 23 January 2015.

Art. 10 This Circular enters into force on the date of its publication, producing effects:

• I - as regards art. 1, as from the calculation period of 17 to 28 April 2017, whose compliance shall occur from 8 to 19 May 2017, for institutions belonging to Group "A", and as from the calculation period of 10 to 20 April 2017, whose compliance shall occur from 2 to 12 May 2017, for institutions belonging to Group "B"; it being clarified that compliance for the immediately preceding periods shall be extended to 5 May and 28 April 2017, respectively, for groups "A" and "B";

• II - as regards art. 2, as from the calculation period of 24 to 28 April 2017, whose compliance shall occur from 8 to 12 May 2017, it being clarified that compliance for the immediately preceding period shall be extended until 5 May 2017;

• III - as regards art. 3, as from the calculation period of 17 to 28 April 2017, whose compliance shall occur from 8 May to 19 May 2017, it being clarified that compliance for the immediately preceding period shall be extended to 5 May 2017; and

• IV - as regards arts. 4, 5 and 6, as from the calculation period of 24 to 28 April 2017, whose compliance shall occur from 8 to 12 May 2017.

Reinaldo Le Grazie Director of Monetary Policy