CMN Resolution No. 4579 - Reduces the percentage of rural credit allocation from Rural Savings (MCR 6-4) from 74% to 65% and increases the mandatory reserve requirement from 15.5% to 21%

The Central Bank of Brazil, pursuant to Article 9 of Law No. 4,595 of December 31, 1964, makes public that the Monetary National Council, in an extraordinary session held on June 7, 2017, considering the provisions of Articles 4, items VI and XIV, of said Law, Articles 4, 14, 15, item I, and 21 of Law No. 4,829 of November 5, 1965, and Article 81, item III, of Law No. 8,171 of January 17, 1991,

R E S O L V E S:

Article 1 Items 2 and 17 of Section 4 (Rural Savings) of Chapter 6 (Resources) of the Rural Credit Manual (MCR) shall enter into force with the following wording:

“2 - Allocation of rural savings resources is the obligation of the financial institution to maintain applied in rural credit operations a value corresponding to 65% (sixty-five percent) of the arithmetic mean of the Value Subject to Collection (VSR) related to rural savings deposits calculated during the calculation period, considering for compliance with this requirement:

......” (NR)

“17 - ......

a) 21% (twenty-one percent), as a mandatory reserve at the Central Bank of Brazil, exclusively in cash, initiated by the financial institution, which shall be remunerated in accordance with applicable regulation;

......

c) up to 14% (fourteen percent), in operations permitted to said institutions, in accordance with current regulation.” (NR)

Article 2 This Resolution enters into force on the date of its publication, producing effects regarding the allocation referred to in:

I - MCR 6-4-2, starting from the calculation period beginning on June 1, 2017, and the compliance period beginning on July 1, 2017; and

II - MCR 6-4-17-“a” and “c”, starting from the calculation period of June 26 to 30, 2017, whose adjustment begins on July 10, 2017.

Ilan Goldfajn
President of the Central Bank of Brazil