11/26/2008 11h02
Central Bank changes reserve requirement and BNDES receives US$ 2.7 billion
DCI 11/26/2008
The bank that invests in the Brazilian Development Bank (BNDES) will have a discount in the reserve requirement. The announcement was made yesterday by the Central Bank and it may inject R$ 6.2 billion (US$ 2.7 billion) in the public institution of promotion of development. "The measure complements the actions of the Central Bank in the sense of improving the distribution of funds in the financial system and the conditions of credit market for small- and average-sized enterprises", emphasized the monetary authority, by means of a press release. According to the new rules, the Central Bank authorizes the application in interbank deposits made by the institutions in the BNDES to be deducted from the reserve requirement for the time deposits, whose rate is 15%. The time limit to perform new applications eligible to such deduction from the reserve requirement is December 31 this year. "Until then the institutions will have an incentive to carry out or renew operations for longer terms", explained the Central Bank. The Central Bank also informed that, for all applications in interbank deposits with discount of the reserve requirement for time deposit, only Interbank Deposits (DIs) between 6 to 18 months will be accepted. "The limits aim at avoiding distortions in operations of liquidity in the short term as well as making the applications compatible with the credit operations carried out by the financial institutions. The funds from the applications that become due after the publication of the circular will start being deposited in cash again, without remuneration in the Central Bank, in the due date", informed the monetary authority in an announcement. The other conditions for the discount in the collection of the reserve requirement for time deposits remain the same, as informed the Central Bank.
