Resolution CMN No. 367 - Rules for the Capital Market and Open Market - Repurchase or Purchase and Sale Commitments for Fixed Income Securities Traded in the Capital Market (Resolution 366) - Resource Capture and Application by Commercial Banks, Investment Banks, and Others

RESOLUTION NO. 000367

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 April 7, 1976, having regard to the provisions of Article 4, items VI, VIII, IX, and XI of the aforementioned Law; Articles 2, items III and V, 10, item VI, 14, 28, and 29 of Law No. 4,728, of July 14, 1965; as well as Decree-Laws Nos. 13 and 14, of July 18 and 29, 1966, respectively, and Article 4 of Decree-Law No. 1,454, of April 7, 1976,

RESOLVES:

I - The capture of resources by commercial banks, investment banks, and credit, financing, and investment companies - whether through the receipt of fixed-term deposits, with or without the issuance of certificates, or through the placement of exchange bills accepted by them, in the case of the latter institutions cited - shall be made at market rates.

II - Commercial banks and investment banks may receive fixed-term deposits, with the issuance of certificates, provided that, in any event:

a) the term shall be equal to or greater than 90 (ninety) days;

b) the total value of deposits with terms less than 180 (one hundred and eighty) days shall not represent more than 20% (twenty percent) of the total value of fixed-term deposits, with or without the issuance of certificates, of the institution.

III - Commercial banks and investment banks may receive fixed-term deposits, without the issuance of certificates, with a term equal to or greater than 60 (sixty) days, established that the value of deposits without the issuance of certificates, with terms less than 180 (one hundred and eighty) days, shall also be computed for the purpose of calculating the 20% (twenty percent) limit fixed in item "b" of the previous item.

IV - Compulsory deposits shall not apply to fixed-term deposits.

V - It remains optional for commercial banks and investment banks to receive fixed-term deposits, with the issuance of certificates, from brokerage firms and securities distribution companies and from autonomous agents.

VI - Commercial banks and investment banks may not attribute payment of commission or grant of premium of any nature to depositors, due to the deposits collected, except for the specific case of payment of placement fees to institutions of the Distribution System provided for in Article 5 of Law No. 4,728, of July 14, 1965.

VII - Credit, financing, and investment companies may accept, for placement in the market, based on active consumer financing operations, exchange bills with a minimum term of 90 (ninety) days, observing the limitation provided for in item "a" of item XIV of this Resolution.

VIII - The attribution of monthly income to fixed-term deposits, with or without the issuance of certificates, and to exchange bills shall only be permitted when the term, counted from the date of receipt or issuance, respectively, is equal to or greater than 360 (three hundred and sixty) days.

IX - In the capture of resources, whether through the receipt of fixed-term deposits, with or without the issuance of certificates, or through the placement of exchange bills accepted by credit, financing, and investment companies, the following shall be observed:

a) for deposits and titles with a term less than 360 (three hundred and sixty) days, counted from the date of receipt or issuance, respectively, prefixed monetary correction shall always be used;

b) for deposits and titles with a term of 360 (three hundred and sixty) to 720 (seven hundred and twenty) days, counted from the date of receipt or issuance, respectively, prefixed monetary correction or monetary correction identical to that of the National Treasury Adjustable Obligations may be used;

c) for deposits and titles with a term greater than 720 (seven hundred and twenty) days, counted from the date of receipt or issuance, respectively, monetary correction identical to that of the National Treasury Adjustable Obligations shall always be used, except as provided in item X of this Resolution.

X - Financing with prefixed monetary correction granted to the final consumer by credit, financing, and investment companies may be made for terms of up to 36 (thirty-six) months, when intended for the purchase of new machines and equipment of national production or vehicles also manufactured in the Country, consequently admitting that the corresponding exchange bills, with prefixed monetary correction, are issued for a term of up to 36 (thirty-six) months.

XI - The application of resources by investment banks and credit, financing, and investment companies, in their respective operational fields, shall be made at market rates.

XII - Investment banks may carry out lending operations with a minimum term of 180 (one hundred and eighty) days.

XIII - It is prohibited, in active operations carried out by investment banks and credit, financing, and investment companies, as a form of disbursement, the delivery of titles to the financed party or their consignment to an intermediary society in the name of the financed party. In this way, the net resources of the operation must be delivered to the financed party by the financial institution, concomitantly with the formalization of the financing contract.

XIV - The maturities of the exchange bills accepted by credit, financing, and investment companies do not necessarily need to bear a direct relationship with the maturities of the exchange titles guaranteeing consumer financing or the final user of goods and services, provided that the following norms are observed:

a) exchange bills that have backing in installments of financing for consumers or final users of goods and services, with maturities for terms less than 180 (one hundred and eighty) days, may have a minimum term of 90 (ninety) days;

b) exchange bills that have backing in installments of financing for consumers or final users of goods and services, with maturities for terms of 180 (one hundred and eighty) to 360 (three hundred and sixty) days, may have a minimum maturity term of 180 (one hundred and eighty) days;

c) exchange bills that have backing in installments of financing for consumers or final users of goods and services, with maturities for terms greater than 360 (three hundred and sixty) days, may have a minimum term of 360 (three hundred and sixty) days.

d) the present value of the exchange bills accepted by credit, financing, and investment companies shall not exceed the present value of all active consumer financing operations or final user of goods and services carried out by the institution.

XV - Acting as an autonomous investment agent always on behalf and order of the society that accredited it, in accordance with item II of Resolution No. 238, of November 24, 1972, the faculty provided for in item V of this Resolution may not be used to form a own portfolio of bank deposit certificates for resale.

XVI - Commercial banks are permitted to acquire fixed income titles, observing that any excess between the total value of these applications - minus the value of National Treasury Letters not linked to repurchase or sale commitments - and the total value of fixed-term deposits captured by the institution shall be computed in the range of non-priority applications.

XVII - The provisions of item XI of this Resolution do not apply to operations carried out with resources from official financial institutions.

XVIII - The Central Bank shall issue complementary instructions that are necessary for the execution of the provisions of this Resolution.

XIX - The following are revoked:

a) item I of Resolution No. 95, of July 19, 1968;

b) items V and IX of Resolution No. 104, of December 10, 1968;

c) item II of Resolution No. 105, of December 10, 1968;

d) Resolutions Nos. 115, of May 21, 1969; 136, of February 18, 1970; 137, of February 18, 1970; 210, of February 2, 1972; 212, of February 2, 1972; 227, of July 4, 1972; 243, of January 16, 1973; 245, of January 16, 1973; 286, of May 3, 1974; 293, of July 23, 1974; 322, of April 15, 1975; 324, of May 30, 1975; and 361, of March 12, 1976.

Brasília-DF, April 9, 1976

Paulo H. Pereira Lira
President