CIRCULAR No. 3.916, OF 22 NOVEMBER 2018

Defines and consolidates the rules on reserve requirements on time deposits.

The Board of Governors of the Central Bank of Brazil, in a meeting held on 21 November 2018, based on art. 10, items III and IV, of Law No. 4.595, of 31 December 1964, and on art. 66 of Law No. 9.069, of 29 June 1995, 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 This Circular provides for the reserve requirements on time deposits, to which commercial banks, multiple banks, development banks, investment banks, exchange banks, savings banks and credit, financing and investment companies are subject.

Art. 2 The Amount Subject to Reserve Requirements (VSR) consists of the sum of the balances recorded in the following accounting accounts of the Chart of Accounts for Institutions of the National Financial System (Cosif):

I - 4.1.3.10.60-1 Related - Leasing Company;

II - 4.1.3.10.65-6 Related with Guarantee - Leasing Company;

III - 4.1.3.10.70-4 Unrelated - Leasing Company;

IV - 4.1.3.10.75-9 Unrelated with Guarantee - Leasing Company;

V - 4.1.5.10.00-9 Time Deposits;

VI - 4.3.1.00.00-8 Resources from Bills of Exchange;

VII - 4.3.4.50.00-2 Pledged Debenture Certificates;

VIII - 4.2.1.10.80-0 Own-Issue Securities; and

IX - 4.9.9.12.20-7 Contracts for Assumption of Obligations - Linked to Transactions Carried Out Abroad.

Sole paragraph. Time deposits resulting from assistance or financial support operations contracted with funds or other mechanisms constituted by institutions of the National Financial System under the terms of § 1 of art. 28 of Complementary Law No. 101, of 4 May 2000, including those referred to in art. 12, item IV, of Complementary Law No. 130, of 17 April 2009, do not form part of the VSR.

Art. 3 The calculation base for the reserve requirement on time deposits corresponds to the arithmetic average of the VSRs determined on the business days of the calculation period, minus R$30,000,000.00 (thirty million reais).

Sole paragraph. The calculation period comprises the business days of one week, beginning on Monday and ending on Friday.

Art. 4 The reserve requirement is determined by applying the rate of 33% (thirty-three percent) to the calculation base referred to in art. 3.

Art. 5 The requirement, calculated as provided in art. 4, shall be deducted from the following amounts:

I - R$3,600,000,000.00 (three billion six hundred million 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$2,400,000,000.00 (two billion four hundred million reais), for independent financial institutions or those belonging to a financial conglomerate whose Tier I of the Reference Equity (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$1,200,000,000.00 (one billion two hundred million reais), for independent financial institutions or those belonging to a financial conglomerate whose Tier I of the Reference Equity (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); and

IV - zero, for independent financial institutions or those belonging to a financial conglomerate whose Tier I of the Reference Equity (PR) is equal to or greater than R$15,000,000,000.00 (fifteen billion reais).

§ 1 For the purposes of the deduction referred to in this article, the Tier I of the PR relating to 30 June 2018, determined as established by Resolution No. 4.192, of 1 March 2013, shall be considered for independent financial institutions or those belonging to a financial conglomerate.

§ 2 In the event of absence of information on Tier I of the PR relating to 30 June 2018, the information on the last Tier I of the PR prior to 30 June 2018 provided by the institution shall be considered as the criterion for the deduction referred to in this article.

§ 3 For financial institutions starting operations, the deduction amount shall be calculated according to the first position of Tier I of the PR reported to the Central Bank of Brazil or zero, while it is not reported.

§ 4 Financial institutions whose requirements are equal to or less than R$500,000.00 (five hundred thousand reais) are exempt from the reserve requirement referred to in this Circular, but must provide the information as established in art. 8 of this Circular.

Art. 6 The determined requirement is effective from the Monday of the second week following the end of the calculation period, or the next business day, if Monday is not a business day, until the following Friday, and must be met in cash, by deposit into a specific account.

§ 1 The daily closing balance of the respective reserve account must correspond to 100% (one hundred percent) of the requirement.

Circular No. 3.916, of 22 November 2018 Page 3 of 4 § 2 The requirement must be deposited exclusively by an institution holding a Banking Reserve account or a Settlement Account, which shall command the respective transfer to the credit of the reserve account. § 3 The reserve account may be freely operated by the holding institution, to the credit of its Banking Reserve account or Settlement Account, during the hours established for the operation of the Reserve Transfer System (STR) of the Central Bank of Brazil. § 4 An institution that does not hold a Banking Reserve account or a Settlement Account may operate its reserve account to the credit of a Banking Reserve account of its free choice for each operation. Art. 7 The financial institution that does not observe the rules regarding the maintenance of balance in the collection accounts at the Central Bank of Brazil, related to the reserve requirement on time deposits, incurs the payment of a financial cost, as established in the regulations in force. Art. 8 The institution must provide, by the business day immediately preceding the date on which the respective requirement period begins, the daily data related to the VSR of the calculation period. § 1 The financial institution is exempt from providing the information referred to in this article if the amounts subject to collection and others related to compliance with the requirement and collection deductions remain unchanged from the last reported position. § 2 In the event of absence of information for one or more days of the calculation period until the end of the deadline set in the caput, each unreported position shall be assigned the value of the last reported position. § 3 The financial institution that reports or changes the data after the deadline set in this article is subject to the penalties provided for in the regulations in force. Art. 9 The financial institution subject to the reserve requirement referred to in this Circular, not holding a Banking Reserve account or a Settlement Account, must indicate the financial institution holding a Banking Reserve account to which the charges related to financial costs will be forwarded and to which any refunds will be credited. Art. 10 The daily closing balance of the collection account at the Central Bank of Brazil, limited to the amount of the requirement, shall receive the following remuneration, calculated based on the Selic Rate, referred to in §§ 1 and 2 of art. 1 of the Regulation Annex to Circular No. 3,868, of December 19, 2017: 𝑅 = 𝑆 𝑥 [(1 + 𝑆𝑒𝑙𝑖𝑐) 1⁄252 − 1], where: R = remuneration to be credited, expressed with two decimal places, with mathematical rounding; S = closing balance of the collection account, limited to the amount of the requirement;

Selic = Annual Selic Rate, in unit format, expressed with four decimal places, referring to the date of the balance to be remunerated.

§ 1 The remuneration referred to in the caput is credited to the respective collection account by 4:30 p.m. of the following business day.

§ 2 The partial results of multiplication, division, and exponentiation used in the algebraic expression for calculating the remuneration must contain eight decimal places, with mathematical rounding.

Art. 11 The following are revoked:

I - Circular No. 3,528, of March 23, 2011;

II - Circular No. 3,569, of December 22, 2011;

III - Circular No. 3,576, of February 10, 2012;

IV - Circular No. 3,594, of May 21, 2012;

V - Circular No. 3,609, of September 14, 2012;

VI - Circular No. 3,613, of November 8, 2012;

VII - Circular No. 3,660, of July 1, 2013;

VIII - Circular No. 3,712, of July 24, 2014;

IX - Circular No. 3,715, of August 20, 2014;

X - Circular No. 3,723, of October 15, 2014;

XI - Circular No. 3,756, of May 28, 2015; and

XII - Circular No. 3,775, of December 16, 2015.

Art. 12 This Circular enters into force on the date of its publication, producing effects from the calculation period beginning on December 17 and ending on December 21, 2018, whose adjustment will occur on December 31, 2018.

Reinaldo Le Grazie
Director of Monetary Policy

This text does not replace the one published in the DOU of 23/11/2018, Section 1, p. 227/228, and in Sisbacen.