Resolution CMN No. 3488 — Establishes Limit for Total Exposure in Gold, Foreign Currency, and Operations Subject to Exchange Rate Variation

RESOLUTION NO. 003488

Establishes limit for the total exposure in gold, in foreign currency and in operations subject to exchange rate variation.

The CENTRAL BANK OF BRAZIL, in accordance with Article 9 of Law No. 4.595, of December 31, 1964, makes public that the MONETARY NATIONAL COUNCIL, in a session held on August 29, 2007, having in view the provisions of Article 4, items VIII and XI, of the aforementioned law, in Law No. 4.728, of July 14, 1965, in Article 20 of Law No. 4.864, of November 29, 1965, in Law No. 6.099, of September 12, 1974, with the alterations introduced by Law No. 7.132, of October 26, 1983, in Law No. 10.194, of February 14, 2001, with the alteration given by Law No. 11.110, of April 25, 2005, in Article 6 of Decree-Law No. 759, of August 12, 1969, and in Article 7 of Decree-Law No. 2.291, of November 21, 1986,

R E S O L V E S:

Art. 1 The limit of Reference Equity (PR), calculated in accordance with Resolution No. 3.444, of February 28, 2007, for the exposure in gold, in foreign currency and in operations subject to exchange rate variation of financial institutions and other institutions authorized to function by the Central Bank of Brazil, except for microentrepreneur credit societies and the institutions mentioned in Article 1 of Resolution No. 2.772, of August 30, 2000, calculated according to the procedures and parameters established by the aforementioned agency, is 30% (thirty percent).

§ 1 The calculation of exposure must include branches abroad.

§ 2 For institutions that are part of a financial conglomerate, in accordance with the Accounting Plan of the Institutions of the National Financial System - Cosif, the value of exposure must be calculated on a consolidated basis.

§ 3 For institutions that are part of a financial conglomerate and of the economic-financial consolidation, the value of exposure must be calculated on a consolidated basis, both for the financial conglomerate and for the economic-financial consolidation.

Art. 2 The processes and controls related to the limit established in this resolution are the responsibility of the director responsible for the risk management of the institution.

§ 1 The institutions mentioned in Article 1 must keep updated with the Central Bank of Brazil the indication of the director responsible for the risk management of the institution.

§ 2 For the purposes of the responsibility referred to in the caput, it is admitted that the indicated director performs other functions in the institution, except for that related to the administration of third-party resources and treasury operations.

Art. 3 The Central Bank of Brazil may alter the exposure limit in gold, in foreign currency and in operations subject to exchange rate variation, referred to in Article 1, observing the minimum limit of 15% (fifteen percent) and the maximum limit of 75% (seventy-five percent).

Art. 4 This resolution enters into force on the date of its publication.

Art. 5 Resolution No. 2.606, of May 27, 1999, is hereby revoked, and the citations and the basis of validity of normative acts issued by the Central Bank of Brazil, based on the now-revoked norm, shall have this resolution as their reference.

Brasília, August 29, 2007.

Alexandre Antonio Tombini
President, substitute