CMN Resolution No. 5047 — Provisions on the Establishment and Operation of Development Banks

CMN RESOLUTION NO. 5,047, OF NOVEMBER 25, 2022

Provisions on the establishment and operation of development banks.

The Central Bank of Brazil, in accordance with Article 9 of Law No. 4,595, of December 31, 1964, makes it public that the National Monetary Council, in a session held on November 24, 2022, based on Article 4, item VIII, of the aforementioned Law,

R E S O
L V E U :

CHAPTER I
ON THE OBJECT AND SCOPE OF APPLICATION

Article 1. This Resolution regulates the establishment and operation of development banks.

Sole paragraph. The provisions of this Resolution do not apply to a financial institution controlled by the Union, created or whose creation has been authorized by specific law.

CHAPTER II
ON ESTABLISHMENT AND AUTHORIZATION FOR OPERATION

Article 2. Development banks are public financial institutions created and controlled by a unit of the Federation, constituted in the form of a corporation, in accordance with Law No. 6,404, of December 15, 1976.

§ 1. In the name of the institutions mentioned in the caput, the expression "Development Bank" must appear, followed by the name of the unit of the Federation that holds its shareholding control, and the use of a name or trade name containing terms characteristic of other institutions of the National Financial System or similar expressions, in Portuguese or in a foreign language, is prohibited.

§ 2. The development bank must have its headquarters in the Capital of the unit of the Federation that holds its shareholding control.

Article 3. The operation of development banks depends on authorization from the Central Bank of Brazil.

CHAPTER III
ON MINIMUM CAPITAL AND NET EQUITY LIMITS

Article 4. Development banks must permanently observe the minimum limits of paid-up share capital and net equity of R$12,500,000.00 (twelve million and five hundred thousand reais).

Sole paragraph. For development banks that operate in the foreign exchange market, R$6,500,000.00 (six million and five hundred thousand reais) must be added to the paid-up share capital and net equity values established in the caput.

Article 4
(Revoked by Joint Resolution No. 14, of 3/11/2025.)

CHAPTER IV
ON THE OBJECTIVE

Article 5. The primary objective of development banks must be to provide the timely and adequate supply of resources necessary for financing, in the medium and long term, programs and projects aimed at promoting the economic and social development of the respective units of the Federation that hold their shareholding control, with priority given to supporting the private sector.

Sole paragraph. Exceptionally, when the venture aims to benefit interests of common interest, development banks may provide assistance to programs and projects developed in a neighboring unit of the Federation to their area of operation.

Article 6. To meet its objective, development banks may support initiatives aimed at:

I - expanding the productive capacity of the economy, through the implementation, expansion and/or relocation of ventures;

II - encouraging productivity improvement, through reorganization, rationalization, modernization of companies and formation of stocks, at adequate technical levels, of raw materials and final products, or through the formation of integrated commercialization companies;

III - promoting the organization of sectors of the regional economy and the cleanup of companies through incorporation, merger, association, assumption of shareholding control and of assets and/or liquidation or consolidation of onerous liabilities or assets;

IV - fostering rural production through integrated investment projects aimed at the formation of fixed or semi-fixed capital; or

V - promoting the incorporation and development of production technology, managerial improvement, and the training and improvement of technical personnel, and, for this purpose, may foster technical assistance programs, preferably through specialized companies and entities.

Sole paragraph. In the case of the ventures referred to in item IV, operating financing, as defined in the legislation governing rural credit, may be carried out directly by the development bank or through other financial institutions authorized to carry out this type of activity.

CHAPTER V
ON OPERATIONS AND ACTIVITIES

Article 7. Development banks may only operate with:

I - natural persons residing and domiciled in the Country, provided that the resources granted are linked to the execution of a project approved by the institution itself, to the paid-up share capital or to the acquisition of shareholding control of business companies whose activities are important for the state or regional economy;

II - private law legal entities headquartered in the Country, observing the provisions of Articles 33 to 35 of Decree No. 55,762, of February 17, 1965; and

III - public law legal entities or entities directly or indirectly controlled by them.

Sole paragraph. The operations provided for in item I of the caput may be carried out separately or jointly with other operations contracted directly with the respective company.

Article 8. Development banks may carry out the following operations and activities, provided they are compatible with their objective, observing the specific legislation and regulation applicable to each case:

I - loans and financing;

II - leasing operations, including with resources from federal public development institutions;

III - provision of guarantees;

IV - subscription of shares or debentures for resale in the market;

V - subscription guarantee;

VI - participation in the share capital of business companies;

VII - subscription of quotas of funds that have Union participation, constituted with the objective of guaranteeing the risk of credit operations, in accordance with Articles 7 to 13 of Law No. 12,087, of November 11, 2009; and

VIII - other operations and activities admitted in the legislation and regulation.

§ 1. The participation referred to in item VI of this article must be temporary and minority.

§ 2. For the purposes of the provision of § 1, temporary is considered the period necessary for the maturation of the investment or financial recovery of the company, stipulated in accordance with the conclusions of the economic viability analysis of the project or financial assistance plan carried out by the development bank.

§ 3. Development banks may subscribe, acquire or receive shares or quotas that result in the disqualification of the minority participation referred to in § 1 due to:

I - the exercise of rights relating to:

a) conversion into shares of debentures convertible into shares;

b) preference in subscription; and

c) receipt of bonus titles; and

II - the liquidation of a loan of difficult or doubtful solution.

§ 4. In the cases referred to in § 3, development banks must sell, within a period of up to one year from their subscription, acquisition or receipt, the shares or quotas that result in the disqualification of the minority participation referred to in § 1.

§ 5. In the event that market conditions prove unfavorable up to thirty days before the expiration of the period for the sale of shares or quotas stipulated in § 4, the occurrence must be justified to the Central Bank of Brazil.

Article 9. It is prohibited for development banks to:

I - operate in acceptances of negotiable instruments for placement in the capital market;

II - constitute, administer and manage investment funds;

III - finance land subdivisions and construction of real estate for resale or incorporation, except for operations related to the implementation of industrial districts; and

IV - acquire real estate not intended for own use, except in the cases admitted by the legislation and regulation.

CHAPTER VI
ON SOURCES OF RESOURCES

Article 10. Development banks may employ in their activities, observing the specific legislation and regulation applicable to each case, in addition to their own resources, those derived from:

I - time deposits, with or without the issuance of a certificate;

II - loans and financing obtained in the Country and abroad;

III - credit operations or contributions from the federal, state or municipal public sector;

IV - issuance or negotiation of mortgage bonds and real estate credit bonds;

V - negotiation of titles, bonds and certificates of the agribusiness;

VI - issuance of agribusiness credit letters;

VII - issuance of financial letters;

VIII - negotiation of certificates of bank credit bonds; and

IX - other forms of fundraising admitted by the legislation and regulation.

Article 11. The fundraising through time deposits must be carried out at market rates, with a maturity date equal to or greater than 360 days.

Article 12. Development banks that issue financial letters must meet the following conditions:

I - constitution of an audit committee in accordance with current regulation; and

II - the balance of financial letters issued, added to the balance of time deposits collected, must not exceed 50% (fifty percent) of the institution's net equity value.

Sole paragraph. Non-compliance with the conditions mentioned in the caput implies suspension of new issuances of financial letters by the issuing institution.

CHAPTER VII
FINAL PROVISIONS

Article 13. Development banks may not maintain agencies.

Sole paragraph. Development banks may enter into agreements with institutions authorized to operate by the Central Bank of Brazil to carry out operations compatible with their objectives.

Article 14. The Central Bank of Brazil will adopt, in accordance with its legal competencies, the necessary measures to execute the provisions of this Resolution.

Article 15. The following are revoked:

I - Resolution No. 394, of November 3, 1976;

II - item VIII of Resolution No. 1,559, of December 22, 1988;

III - Resolution No. 2,152, of April 27, 1995;

IV - Resolution No. 3,593, of July 31, 2008;

V - Resolution No. 3,756, of July 1, 2009;

VI - Article 3 of Resolution No. 3,834, of January 28, 2010; and

VII - Resolution No. 4,143, of September 27, 2012.

Article 16. This Resolution enters into force on January 1, 2023.

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