Circular No. 3975 — Establishes Compulsory Deposit on Savings Deposit Resources in Substitution for Mandatory Reserve on Savings Deposit Resources

CIRCULAR NO. 3,975, OF JANUARY 8, 2020
Establishes the compulsory deposit on savings deposit resources in substitution for the mandatory reserve on savings deposit resources.

The Collegiate Board of the Central Bank of Brazil, in a session held on January 8, 2020, based on art. 10, items III and IV, of Law No. 4,595, of December 31, 1964, and on art. 66 of Law No. 9,069, of June 29, 1995,

R E S O L V E:

Art. 1º A compulsory deposit on savings deposit resources captured by multiple banks with a real estate credit portfolio, commercial banks, real estate credit companies, savings and loan associations, savings banks, and credit cooperatives authorized by the Central Bank of Brazil to capture savings deposits in accordance with current regulation is hereby established, in substitution for the mandatory reserve on savings deposit resources, as provided for in Circular No. 3,093, of March 1, 2002, without interruption.

Sole Paragraph. In the case of credit cooperatives that are part of a cooperative system, the proof of compliance with the exigibility, as well as the deposit and payment of financial costs provided for in art. 6 of this Circular, is the responsibility of:
I - the central credit cooperative, in a two-level system; II - the credit confederation, in a three-level system; and III - the cooperative bank, in a three-level system in which the confederation is not a credit confederation.

Art. 2º Values Subject to Deposit (VSR) consist of the balances recorded in the following accounting items of the Accounting Plan of the Institutions of the National Financial System (Cosif):
I - 4.1.2.00.00-3 Savings Deposits; and
II - 6.2.1.00.00-3 APE - Resources of Saving Associates.

Sole Paragraph. The values recorded in the accounting item "4.1.2.60.40-7 Linked Savings Deposits - Linked to Letter of Credit" of Cosif are exempt from the compulsory deposit.

Art. 3º The calculation base for the exigibility of compulsory deposit on savings deposit resources corresponds to the arithmetic mean of the sum of the balances recorded in the items referred to in items I and II of art. 2 of this Circular, relating to business days of the calculation period.

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

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Art. 4º The exigibility of compulsory deposit for each savings modality is determined by applying a rate of 20% (twenty percent) to the calculation base referred to in art. 3.

Art. 5º The exigibility of compulsory deposit determined for each savings deposit modality is valid from Monday of the second week following the closing of the calculation period until the following Friday.

§ 1º The deposit must be made exclusively in cash, through an institution holding a Bank Reserves Account or a Settlement Account, which will command the respective credit transfer to the collection account corresponding to each savings deposit modality.

§ 2º The daily closing balance of the collection account corresponding to each savings deposit modality must correspond to 100% (one hundred percent) of the exigibility.

§ 3º The collection account corresponding to each savings deposit modality may be freely operated by the holding institution, to the credit of a Bank Reserves Account or a Settlement Account of its free choice at each operation.

§ 4º The operation of the collection account corresponding to each savings deposit modality observes the time established for the operation of the Reserve Transfer System (STR) of the Central Bank of Brazil.

Art. 6º The financial institution that does not observe the rules regarding the maintenance of a balance in the collection account corresponding to each savings deposit modality incurs the payment of a financial cost, as provided for in the current regulation.

Art. 7º The daily closing balance of the collection account corresponding to each savings deposit modality, at the Central Bank of Brazil, is entitled to remuneration, credited to the respective collection account by 4:30 p.m. on the next business day and calculated based on the Reference Rate (TR), plus the interest below, as follows:

R = S x (1 - P) x (1 + TR)^(1/n) x (1 + A)^(m/365) + S x P x (1 + TR)^(1/n) x (1 + B)^(m/365) - S,

where:
R = remuneration to be credited, expressed with two decimal places, with mathematical rounding; S = daily closing balance of the collection account corresponding to each savings deposit modality, limited to the respective exigibility; P = quotient of the division of the daily average balance, in the calculation period, of savings deposits made after May 3, 2012, by the daily average balance of the total of savings deposits, expressed in unit format with eight decimal places and with mathematical rounding, for each savings deposit modality; TR = TR of each business day, expressed with four decimal places, valid for the period ending on the corresponding day of the following month, converted to unit format;

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n = number of business days between the reference day of the TR used for the calculation of remuneration and the day corresponding to the reference day of the TR in the following month; A = addition to the TR, corresponding to:
I - 0.03 (three hundredths), in the case of compulsory deposit on savings deposits of the linked savings modality; II - 0.0617 (six hundred and seventeen thousandths), in the case of compulsory deposit on the other savings deposit modalities; m = number of calendar days between the date of the balance to be remunerated and the date of the credit of the respective remuneration; B = addition to the TR, corresponding to:
I - 0.03 (three hundredths), in the case of compulsory deposit on savings deposits of the linked savings modality; II - in the case of compulsory deposit on the other savings deposit modalities:
a) 0.0617 (six hundred and seventeen thousandths), while the Selic annual target rate, defined by the Central Bank of Brazil, is higher than 8.5% (eight and five tenths percent); or b) 70% (seventy percent) of the Selic annual target rate, defined by the Central Bank of Brazil, in force on the date of the balance to be remunerated, while the target rate of said rate is equal to or lower than 8.5% (eight and five tenths percent).

§ 1º When the day corresponding to the reference day of the TR in the following month does not exist, the first day of the subsequent month will be considered as the end of the period.

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

Art. 8º The financial institution must provide, until the business day immediately preceding the date on which the validity of the respective exigibility begins, the daily data relating to the corresponding calculation base.

§ 1º The financial institution is exempt from providing the information referred to in this article if the values subject to deposit and others relating to the compliance with the exigibility and deductions of deposit remain unchanged in relation to the last reported position.

§ 2º In the event of absence of information relating to one or more days of the calculation period until the end of the deadline fixed in the caput, each unreported position will be attributed the value relating to the last reported position.

§ 3º The financial institution that reports or alters the data after the deadline fixed in this article is subject to the penalties provided for in the current regulation.

Art. 9º In addition to the daily information for the calculation of the exigibility of compulsory deposit, financial institutions must provide the data necessary for the verification of the

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mandatory allocation of resources of savings captured by the entities integrated into the Brazilian Savings and Loan System (SBPE), until the last business day immediately preceding the date of verification of compliance with the allocation.

Sole Paragraph. The financial institution that reports or alters the data after the deadline fixed in this article is subject to the penalties provided for in the current regulation.

Art. 10. The financial institution subject to the compulsory deposit referred to in this Circular, not holding a Bank Reserves Account or a Settlement Account, must indicate the financial institution holding a Bank Reserves Account to which the charges, pertinent to financial costs, and any eventual refunds will be forwarded.

Art. 11. The Department of Banking Operations and Payment Systems (Deban) is authorized to adopt the necessary measures for the execution of the provisions of this Circular.

Art. 12. The following are revoked:
I - Circular No. 3,093, of March 1, 2002; and
II - Circular No. 3,529, of March 29, 2011.

Art. 13. This Circular enters into force on the date of its publication.

Bruno Serra Fernandes
Monetary Policy Director

This text does not replace the published in the DOU of 1/10/2020, Section 1, p. 31, and in Sisbacen.