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Report: Brazil's central bank to change mandatory deposits requirements


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Report: Brazil's central bank to change mandatory deposits requirements

Banco Central do Brasil is set to announce several changes to its mandatory deposits requirements in the coming days, O Estado de S. Paulo reported.

As part of the first stage in a broader tax reform process, the central bank reportedly plans to reduce the number of segments under the mantle of mandatory deposits by merging a number of segments together. In doing so, the regulator aims to better standardize requirements for demand, time and savings deposits so that banks can use those operational gains to lower loan rates, according to the report.

In a second stage, the BCB will look to gradually lower mandatory deposit levels in order to free up more capital for lending operations.

The government should also announce within days the effective implementation of measures to reduce credit cards interest rates, according to the report.

In December 2016, central bank chief Ilan Goldfajn announced several measures to bolster the country's economy, including the use of excess reserves to control liquidity and boost monetary policy efficiency.