Resolution CMN No. 1064 - Free Interest Rates for Active Operations

RESOLUTION NO. 001064

THE CENTRAL BANK OF BRAZIL, in accordance with Article 9 of Law No. 4,595, of December 31, 1964, makes public that the MONETARY COUNCIL, in a session held on December 4, 1985, considering the provisions of Article 4, items VI, VII, VIII, and IX, of the aforementioned Law, and Article 29 of Law No. 4,728, of July 14, 1965,

RESOLVED:

I - Except as provided in item III, the active operations of commercial, investment, and development banks will be conducted at freely agreed interest rates.

II - Active operations subject to monetary correction must have such pre- or post-fixed adjustment, in the latter case having as the maximum limit the variation of the National Treasury Readjustable Obligations (ORTN) occurred during the period.

III - Incentivized active operations continue to be governed by specific regulation, remaining prohibited any practices that imply exceeding their respective maximum remuneration limits, which may be considered serious offenses by the Central Bank for the purposes of Article 44 of Law No. 4,595, of December 31, 1964.

IV - The Central Bank may adopt the measures deemed necessary for the execution of this Resolution.

V - This Resolution enters into force on the date of its publication, with item I of Resolution No. 912, of April 5, 1984, Resolution No. 844, of July 13, 1983, as well as Circulars No. 615, of March 25, 1981, and No. 888, of September 19, 1984, being revoked.

Brasília-DF, December 5, 1985

Fernão Carlos Botelho Bracher
President