Circular No. 3.134

CIRCULAR N. 003134 ------------------ Redefines the rules for compulsory reserve requirements and mandatory deposits on demand resources. The Board of Directors of the Central Bank of Brazil, in a session held on 10 July 2002, taking into account 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, and in Resolution 1.857, of 15 August 1991, D E C I D E D: Art. 1º To redefine the rules for compulsory reserve requirements and mandatory deposits on demand resources raised by multiple and investment banks, holders of a Banking Reserve account, commercial banks and savings banks. Art. 2º The balances recorded in the following subgroups and accounts of the Chart of Accounts for Institutions of the National Financial System - Cosif, adjusted as per art. 3º or, alternatively, art. 4º, constitute the Value Subject to Reserve Requirement - VSR, on each business day: I - 4.1.1.00.00-0 Demand Deposits; II - 4.1.4.10.00-6 Advance Notice Deposits; III - 4.5.1.00.00-6 Third-Party Funds in Transit; IV - 4.9.1.00.00-2 Collection and Receipt of Taxes and Similar; V - 4.9.9.05.00-1 Administrative Checks; VI - 4.9.9.12.10-4 Contracts for Assumption of Obligations - Linked to Operations Carried Out in the Country; VII - 4.9.9.27.00-3 Obligations for Provision of Payment Services; and VIII - 4.9.9.60.00-8 Funds from Realized Guarantees. Paragraph 1º The following are exempt from compulsory reserve requirements and mandatory deposits on demand resources: I - until 31 May 2003, demand deposits and advance notice deposits raised by pioneer branches existing on 23 June 2000, it being understood that, in the event the branch loses this status, the benefit will be maintained until that date; II - the amounts recorded in the following Cosif account items: a)4.1.1.85.03-2 - TEA - Linked; b)4.1.1.85.05-6 - TEA - Non-Linked; c)4.5.1.85.00-7 Payment Orders in Foreign Currencies; and d)4.5.1.90.00-9 Payment Orders in Foreign Currencies - Floating Rates; III - demand deposits and advance notice deposits raised by federal and state public financial institutions: a) of the respective governments; and b) of autarchies and mixed-capital companies in whose capital the respective governments hold a majority interest; IV - demand deposits and advance notice deposits raised by state public financial institutions held by municipal public entities of the respective federative unit. Paragraph 2º The amounts recorded in the Third-Party Funds in Transit item, subject to the requirement, are balanced with the respective asset counterparts, except that those of an eminently debtor origin are not counted for balancing purposes. Paragraph 3º The VSR relating to dates up to 6 August 2002, inclusive, must be calculated in accordance with the rules established in Circular 3.087, of 1 March 2002. Art. 3º The VSR must be adjusted each day considering the
documents processed by the Clearing House for Checks and Other Papers - Compe and that generate transfers between Banking Reserve accounts of financial institutions, as follows: I - check: a) receiving bank: deduct the amount of checks received on the day, for deposit or for any other purpose, drawn against other financial institutions; b) drawee bank: add the amount of checks with a value exceeding the threshold sent to Compe, on the day, by other financial institutions; II - Credit Document - DOC: a) sending bank: add the amount of DOCs sent to Compe on the day; b) receiving bank: reduce the amount of DOCs received from Compe on the day; III - collection slip: a) receiving bank: add the amount of collection slips paid at the institution on the day and sent to Compe; b) receiving bank: reduce the amount of collection slips paid, on the day, at other financial institutions and received from Compe. Paragraph 1º The adjustments referred to in this article, with respect to the items listed in items I and II of art. 2º, must be made at the level of each client's account. Paragraph 2º Client accounts that show a negative balance after the adjustments as provided in paragraph 1º must not be considered for the purpose of calculating the VSR. Paragraph 3º Documents processed by Compe that affect items exempt from compulsory reserve requirements and mandatory deposits must not be considered in the adjustments referred to in this article. Art. 4º In the transition period, from 7 August 2002 to 7 February 2003, financial institutions may, exceptionally, calculate the VSR without observing the provisions of paragraphs 1º, 2º and 3º of art. 3º. Sole paragraph. The financial institution that opts to calculate the VSR as provided in the caput may migrate, during the transition period, to the calculation system defined in art. 3º, and alternating between the criteria is prohibited. Art. 5º The calculation base for the requirement of compulsory reserve requirements and mandatory deposits on demand resources corresponds to the arithmetic average of the VSRs calculated in the calculation period, minus R$4,000,000.00 (four million reais). Sole paragraph. The calculation period begins on the Monday of one week and ends on the Friday of the following week. Art. 6º The requirement for compulsory reserve requirements and mandatory deposits on demand resources is calculated by applying the rate of 45% (forty-five percent) to the calculation base referred to in art. 5º. Art. 7º The financial institution that presents a requirement equal to or less than R$10,000.00 (ten thousand reais) is exempt from the obligation to hold reserves, but must nevertheless provide the information required in art. 10 of this circular. Art. 8 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 Wednesday of the second week of the calculation period and ends on the Tuesday of the second
subsequent week. Paragraph 1 For the purpose of the verification referred to in the caput of this article, position is considered to be the sum of: I - the daily closing balance of the Reserve Account; and II - the arithmetic average of the financial institution's available funds recorded under the heading "1.1.1.10.00-6 Cash", of Cosif, at the close of each business day of the respective calculation period, up to the limit of 15% (fifteen percent) of the calculation base determined for the institution. Paragraph 2 The arithmetic average of the financial institution's positions during the movement period must correspond to 100% (one hundred percent) of the requirement determined for the respective period. Paragraph 3 At the end of each day, the financial institution's position must be equivalent to at least 80% (eighty percent) of the requirement determined for the respective period. Art. 9 The financial institution that fails to observe the rules relating to compliance with the reserve requirement and mandatory deposit on demand resources incurs the payment of a financial cost in the form provided for in the regulations in force. Art. 10 The financial institution must provide, by the business day immediately preceding the start of the movement period, the pertinent data already known and the estimate for the remaining days of the calculation period. Paragraph 1 The financial institution is exempt from providing the respective information if the calculation base for the reserve requirement and mandatory deposit on demand resources remains unchanged in relation to that of the previous calculation period. Paragraph 2 In the event of absence of information relating to a calculation period by the deadline set in the caput of this article, the value relating to that of the previous period shall be attributed to the calculation base. Paragraph 3 The financial institution that informs or changes the data after the deadlines set in this article incurs the payment of a fine, in the form provided for in the regulations in force. Paragraph 4 The provisions of paragraph 3 do not apply in the case of changes to daily data made by the third business day following the end of the respective calculation period. Art. 11 Financial institutions are divided into two segments, called "Group A" and "Group B", for the purposes of the reserve requirement and mandatory deposit on demand resources. Paragraph 1 The calculation and movement periods of "Group A" have a one-week lag in relation to those of "Group B". Paragraph 2 The Department of Banking Operations and Payment System - Deban shall disclose the detailed lists of financial institutions belonging to each group. Art. 12 Deban shall adopt the necessary measures for the operationalization of the provisions of this regulation. Art. 13 This circular enters into force on 7 August 2002, when Circular 3.087 of 1 March 2002 shall be revoked. Brasília, 10 July 2002 Beny Parnes Director