CMN Resolution No. 1235 — Lowering Standards for Receiving Free Savings Deposits from Legal Entities and Their Yield Credit

RESOLUTION NO. 001235

THE CENTRAL BANK OF BRAZIL, in accordance with Article 9 of Law No. 4,595 of December 31, 1964, makes public that the President of the MONETARY COUNCIL, by act of December 29, 1986, based on Article 1, Paragraph 2 of Decree No. 83,323 of April 11, 1979, with the wording given to it by Article 1 of Decree No. 85,776 of February 26, 1981, "ad referendum" of that Council, and having in view the provisions of Article 7 of Decree-Law No. 2,291 of November 21, 1986,

RESOLVES:

I - Establish that institutions authorized to receive free savings deposits may only credit yields to deposits from legal entities every 3 (three) months.

II - The deposits mentioned in the previous item shall be remunerated at an interest rate of 1.5% (one and five tenths percent) per quarter, applied to their updated values in the manner of Decree-Law No. 2,311 of December 23, 1986.

III - The remuneration mentioned in the previous item shall be applied:

a) on the simple arithmetic mean of the minimum balances presented by the account in each calendar month of the immediately preceding quarter, provided that, during the two last calendar months of the period, there has been no withdrawal;

b) on the minimum balance presented by the account in the immediately preceding calendar quarter, if, during the two last calendar months of the period, there has been a withdrawal.

IV - The Central Bank will publish the remuneration indices for savings deposits, being authorized to lower the standards and adopt the measures necessary for the execution of the provisions of this Resolution.

V - Resolutions, Circulars, Instructions, and other standards issued by the extinct National Housing Bank (BNH), including those regarding funds administered by it, remain in force, except those that have been expressly revoked or modified by specific provisions.

VI - This Resolution enters into force on the date of its publication, with Resolution No. 1,217 of November 24, 1986, being revoked.

Brasília-DF, December 30, 1986

Fernão Carlos Botelho Bracher
President