CMN Resolution No. 4716 - Establishes rules for authorization of rural savings collection by credit cooperatives and disciplines compliance with mandatory application in rural credit and mandatory reserve requirements

The Central Bank of Brazil, in accordance with Article 9 of Law No. 4,595 of December 31, 1964, makes public that the National Monetary Council, in a session held on April 25, 2019, considering the provisions of Article 4, items VI and VIII, of the aforementioned Law, Articles 4 and 21 of Law No. 4,829 of November 5, 1965, Article 81, item III, of Law No. 8,171 of January 17, 1991, and Articles 12, item III, 14, and 15 of Complementary Law No. 130 of April 17, 2009,

R E S O L V E D:

Art. 1 The Section 4 (Rural Savings) of Chapter 6 (Resources) of the Rural Credit Manual (MCR) shall be effective with the following alterations:

“1-A - The following single credit cooperatives, provided they have authorization from the Central Bank of Brazil to operate in rural credit, may request authorization to collect rural savings deposits:

a) when part of cooperative systems organized in 3 (three) levels that present Combined Adjusted Equity greater than R$900,000,000.00 (nine hundred million reais), from July 1, 2019;

b) when part of cooperative systems organized in 2 (two) levels that present Combined Adjusted Equity greater than R$600,000,000.00 (six hundred million reais), from October 1, 2019;

c) when not affiliated with central credit cooperatives, provided they present Adjusted Equity greater than R$300,000,000.00 (three hundred million reais) and are classified in the full category, in accordance with Article 15 of Resolution No. 4,434 of August 5, 2015, from January 1, 2020.” (NR)

“1-B - The application for authorization to collect rural savings deposits must be submitted to the Central Bank of Brazil, in the manner regulated by it:

a) by the confederation constituted by central credit cooperatives or by the central credit cooperative, in the cases covered by items “a” and “b” of item 1-A, respectively;

b) by the single credit cooperative itself, in the case covered by item “c” of item 1-A.” (NR)

“1-C - The approval of the application for authorization to collect rural savings deposits is subject to the following conditions:

a) compliance with current regulations, including operational limits, conditions established in item 1-A, and other obligations towards the Central Bank of Brazil;

b) absence of irregularities and restrictions in public or private registration and information systems containing data pertinent to the requested authorization, on the part of the applying cooperative and its administrators; and

c) adherence to the systemic operation guidelines established by the respective confederation or, in its absence, by the central credit cooperative, for cooperatives that are part of cooperative systems.” (NR)

“1-D - The Central Bank of Brazil may, in the analysis of the processes covered by item 1-C, considering the circumstances of each concrete case and the context of the facts, exceptionally and in the face of public interest, waive compliance with the conditions specified in item 1-C.” (NR)

“1-E - Regarding the direction covered by item 2-A and the mandatory reserve covered by item 17, the following conditions must be observed for the cases provided for in items “a” and “b” of item 1-A:

a) the resources collected by single credit cooperatives must be transferred in the same amounts collected, observing a maximum deadline of up to one business day:

I - to the credit confederation or cooperative bank, in the cases provided for in item “a” of item 1-A;

II - to the central credit cooperative, in the cases provided for in item “b” of item 1-A;

b) it is the responsibility of the credit confederation, the cooperative bank, or the central credit cooperative to demonstrate the direction towards rural credit and the mandatory reserve to the Central Bank of Brazil;

c) the credit confederation, the cooperative bank, or the central credit cooperative that incurs a deficiency in application in compliance with the direction towards rural credit is subject to the financial cost covered by MCR 6-8.” (NR)

“2-A - Regarding the direction covered by item 2, the institutions mentioned in item “f” of item 4 of this Section must observe the following percentages:

a) in the first compliance period: 20% (twenty percent);

b) in the second compliance period: 40% (forty percent);

c) from the third compliance period onwards: the percentage covered by item 2.” (NR)

“3-A - Exceptionally for the first compliance period, the institutions mentioned in item “f” of item 4 of this Section must observe that the calculation period and the compliance period will coincide and will begin on the first business day of collection and end on the last business day of June of the compliance period.” (NR)

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f) the credit confederations, the central credit cooperatives, and the single credit cooperatives covered by items “a”, “b”, and “c”, respectively, of item 1-A.” (NR)

Art. 2 This Resolution enters into force on the date of its publication.

Roberto de Oliveira Campos Neto
President of the Central Bank of Brazil