Circular No. 3.169

CIRCULAR No. 003169 ------------------ Redefines the rules for compulsory reserve requirements and mandatory deposits on demand resources. The Collegiate Board of the Central Bank of Brazil, in a session held on 18 December 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. 1 Redefine the rules for compulsory reserve requirements and mandatory deposits on demand resources raised by multiple and investment banks, holders of Reserve Bank accounts, commercial banks and savings banks. Art. 2 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. 3, 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 1 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 clarified 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) from the respective governments; and b) from 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 2 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 computed for balancing purposes. Art. 3 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 Reserve Bank 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 the financial institutions receiving these checks; 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. Art. 4 The calculation base for the requirement of compulsory reserve 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. 5 The requirement for compulsory reserve and mandatory deposits on demand resources is calculated by applying the rate of 45% (forty-five percent) on the calculation base referred to in art. 4. Art. 6 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 deposit, but must provide the information provided for in art. 9 of this circular. Art. 7 Verification of compliance with the requirement is based on the positions calculated 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 subsequent second week. Paragraph 1 For the purpose of the verification referred to in the caput of this article, position is considered the sum of: I - the daily closing balance of the Reserve Bank account; and II - the arithmetic average of the financial institution's available funds recorded in the item "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 calculated 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 calculated 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 calculated for the respective period. Art. 8 The financial institution that does not observe the rules relating to compliance with the requirement of compulsory reserve deposits and mandatory holdings on demand resources incurs the payment of a financial cost in the form provided for in the regulation in force. Art. 9 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 compulsory reserve deposits and mandatory holdings 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 amount 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 regulation 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 after the end of the respective calculation period. Art. 10 The financial institutions are divided into two segments, called "Group A" and "Group B", for the purposes of compulsory reserve deposits and mandatory holdings on demand resources. Paragraph 1 The calculation and movement periods of "Group A" have a lag of one week in relation to those of "Group B". Paragraph 2 The Department of Banking Operations and Payment System - Deban shall disclose the itemized lists of the financial institutions belonging to each group. Art. 11 Deban shall adopt the necessary measures for the operationalization of the provisions of this regulation. Art. 12 This circular enters into force on 10 February 2003, when Circular 3.134 of 10 July 2002 shall be revoked. Brasília, 19 December 2002 Luiz Fernando Figueiredo Director