Resolution CMN No. 2193 — Provisions on the Establishment and Operation of Commercial Banks with Exclusive Participation by Credit Cooperatives

RESOLUTION NO. 002193

Dispenses with the establishment and operation of commercial banks with exclusive participation by credit cooperatives.

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 August 30, 1995, considering the provisions of Article 4, items VI, VIII, XI, XIII, and XXXIII, of the aforementioned Law, with the alterations introduced by Decree-Law No. 2.290 of November 21, 1986, and Articles 88 and 103 of Law No. 5.764 of December 16, 1971,

RESOLVES:

Article 1. It is permitted the establishment of commercial banks with exclusive participation by singular credit cooperatives, except those of the "luzzatti" type, and central credit cooperatives, as well as federations and confederations of credit cooperatives.

Sole Paragraph. The commercial banks referred to in this article must be constituted as closed corporations, in accordance with Law No. 6.404 of December 15, 1976.

Article 2. In the establishment of the commercial bank mentioned in the preceding article, only the controlling legal entities must publish a statement of purpose and prove economic capacity compatible with the undertaking, in accordance with the regulations in force.

Article 3. The commercial banks referred to in this Resolution:

I - must obligatorily include the expression "Banco Cooperativo" in their name;

II - have their activities restricted to the States in which the headquarters of the controlling legal entities are located;

III - may enter into service provision agreements with credit cooperatives located within their area of operation;

IV - must maintain an adjusted net equity value compatible with the degree of risk of their asset structure, for the purposes provided in Resolution No. 2.099 of August 17, 1994, according to the following formula, considering the variables also defined in the cited regulation: PLE = 0.15 (Apr) + 0.015 (SW).

Article 4. The following are prohibited for the commercial banks referred to in this Resolution:

I - participation in the share capital of financial institutions and other institutions authorized to operate by the Central Bank of Brazil;

II - the execution of "swap" operations on behalf of third parties.

Article 5. The Central Bank of Brazil is authorized to issue norms and adopt measures deemed necessary for the execution of the provisions of this Resolution.

Article 6. This Resolution enters into force on the date of its publication.

Article 7. Article 46 of the Regulation annexed to Resolution No. 1.914 and Circular No. 2.143, both dated March 11, 1992, are hereby repealed.

Brasília, August 31, 1995

Gustavo Jorge Laboissière Loyola
President