Resolution CMN No. 2283 — Consolidated Calculation of Operational Limits and Permanent Asset Application Cap

RESOLUTION NO. 2283

Provides for the consolidated calculation of operational limits and establishes a limit on the application of resources in Permanent Assets.

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 June 5, 1996, having regard to the provisions of Article 4, items VIII and XI, of the aforementioned Law,

RESOLVES:

Article 1. Financial institutions and other institutions authorized to operate by the Central Bank of Brazil, which are part of a conglomerate, are permitted to calculate, based on consolidated financial data, the following operational limits:

I - net worth compatible with the risk degree of the structure of their assets;

II - risk diversification;

III - application of resources in Permanent Assets.

Paragraph 1. For the purposes of this article, the concept of conglomerate adopted by the Accounting Plan of the Institutions of the National Financial System (COSIF) shall be used.

Paragraph 2. The option for consolidated calculation applies to all operational limits mentioned in this article.

Paragraph 3. If non-compliance with the aforementioned operational limits is verified, the restrictions provided for in the current regulations shall apply to each member of the conglomerate.

Article 2. The option to use the facility provided for in the preceding article must be communicated to the Central Bank of Brazil, after the holding of a general meeting of each of the institutions comprising the conglomerate.

Paragraph 1. The communication referred to in this article may be made until the last business day of any month and shall be valid from the month immediately following the communication, and the document used for this purpose must:

I - contain the name and registration number in the General Register of Taxpayers (CGC) of the institutions comprising the conglomerate;

II - indicate the institution of the conglomerate that will be responsible for the calculation and compliance with the consolidated limits;

III - be signed by an administrator or legal representative of each of the institutions comprising the conglomerate.

Paragraph 2. The return to non-consolidated calculation must also be the subject of a decision in a general meeting and shall prevail from the fiscal year following the option, and the decision must be communicated until the last business day of December.

Paragraph 3. The holding of a general meeting is waived when it concerns a wholly-owned subsidiary.

Paragraph 4. The options communicated to the Central Bank of Brazil by the financial institutions referred to in the preceding article, regarding the calculation of operational limits in consolidated form under the regulations in force on the date of publication of this Resolution, shall be valid until July 31, 1996.

Paragraph 5. The provisions contained in the current regulations regarding the monetary fine for late delivery of consolidated financial statements shall apply to the institution indicated in item II of this article.

Article 3. The total of resources applied in Permanent Assets may not exceed 90% (ninety percent) of the value of the adjusted net worth (PLA) of financial institutions and other institutions authorized to operate by the Central Bank of Brazil, as per current regulations.

Paragraph 1. For the purpose of verifying compliance with the limit provided for in this article, the following are not taken into account:

I - deferrals authorized in specific regulations;

II - shareholdings acquired under the National Privatization Program (PND), when of a permanent nature, during a period of 3 (three) years counted from the date of the auction in which the acquisition was made;

III - values corresponding to leasing operations.

Paragraph 2. It is admitted that any excess verified on the date of publication of this Resolution resulting from applications in equity units of the Central Custody and Financial Settlement of Securities (CETIP) and in equity securities of stock exchanges and commodity and futures exchanges, owned by the institutions authorized to carry out operations in the markets administered by them, may be regularized until June 30, 1997.

Article 4. The limit fixed in the preceding article shall be gradually reduced, observing the following schedule:

I - 80% (eighty percent) of PLA, from June 30, 1998;

II - 70% (seventy percent) of PLA, from June 30, 2000;

III - 60% (sixty percent) of PLA, from June 30, 2002.

Article 5. The Central Bank of Brazil is authorized to exclude from the limit provided for in Article 3 other applications characterized as permanent in nature, as well as to lower norms and adopt the necessary measures 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 1 and paragraphs 1 and 2 of Article 2 of Resolution No. 1,820 of April 24, 1991, Resolutions Nos. 1,942 of July 29, 1992, and 1,990 of June 30, 1993, and Articles 4 of Regulation Annex IV of Resolution No. 2,099 of August 17, 1994, 5 of Resolution No. 2,122 of November 30, 1994, and 1 and 3 of Circular No. 2,571 of May 17, 1995, are hereby repealed.

Brasília, June 5, 1996

Gustavo Jorge Laboissière Loyola
President