“The challenge now is to keep micro, small and medium-sized companies up and running. A crisis never seen before requires an effort never made before ”. With these words, Roberto Campos Neto highlighted the main objective of the measures announced at the press conference on Tuesday (23).

Campos Neto emphasized that the BC basically operates in three dimensions. First, the monetary authority aims to keep the Financial System sound, liquid and capital, so that credit is flowing normally. In addition, there must be direction for credit to reach sectors that need it most at the present time. The third group of measures aims to guarantee the stability of the markets.

The BC president (photo) also said that the measures previously taken by the BC were important to mitigate the initial effects of Covid-19 on the economy and that, now, the announced measures are focused on directing credit and liquidity to credit companies. small and medium size.

Reduced capital requirements for smaller institutions 

Temporarily, institutions in the S5 segment have less capital requirements. The action, which will mainly benefit cooperatives and other small institutions, has the potential to release up to R $ 1.3 billion from the capital requirement, in addition to allowing an increase in the credit granting capacity by up to R $ 16.5 billion.

Working Capital for Business Preservation (CGPE) 

The measure is complementary and auxiliary to the programs already announced by the Government with regard to working capital, providing credit for micro, small and medium-sized companies. The idea is that the sector's assets resulting from temporary differences have a treatment that allows the optimization of capital use by banks. The loans will have a minimum term of three years, with a grace period of six months. The credit risk of these operations will be fully assumed by the financial institutions. The measure has the potential to grant new loans in the amount of up to R $ 127 billion.

Purchase of private securities 

At the press conference, the regulation of the purchase of private securities by the Central Bank in the secondary market was also announced (possibility opened after the approval of Constitutional Amendment No. 106). The purpose is to provide liquidity to the private credit market, allowing the sector to function better. Click to view Circular No. 4,028.

With this, the monetary authority intends to minimize the effects of the pandemic on the private credit market, where the impact was significant. “The difference is that the BC will act directly on the market. The objective is to increase liquidity comprehensively ”, explained the BC Monetary Policy director, Bruno Serra Fernandes, emphasizing that the purchase of private securities by the BC is yet another available instrument, with no obligation to use this type of performance. Any such operations will be analyzed on a case-by-case basis, in detail, by the Central Bank's Board of Directors.

In order to meet the transparency requirements contained in EC No. 106, the BC will disclose, on its website, on a daily basis, the operations settled individually, including the identification of the beneficiaries.

Compulsory 

Another measure allows financial institutions to deduct credit operations for micro and small companies and also the balance of investments in DPGE, in an amount of up to 30%, from the balance of compulsory savings deposits. Click to read Circular No. 4,033.

The initiative has the potential to direct up to R $ 55.8 billion in credit to micro and small companies and DPGE. "Credit operations for working capital financing are aimed at companies with annual sales of up to R $ 50 million", explained BC's Director of Inspection, Paulo Souza.

The deduction in compulsory savings deposits by the FIs can be made for up to three years. Financial institutions that fail to comply with the minimum requirements for the allocation of funds for working capital for small companies will lose their remuneration on the 30% of the savings reserve balance.

For FIs that fail to put the measure into practice, there is the possibility of investing resources in Time Deposits with Special Guarantee (DPGE) in institutions in the S3, S4 and S5 segments.

Risk weighting 

The Risk Weighting Factor (FPR) in Time Deposit operations with Special Guarantee (DPGE) was reduced from 50% to 35%. For this, the depositor must be an institution associated with the Credit Guarantee Fund (FGC). Click to read Circular No. 4,030. It may release R $ 12.7 billion.

"There is a potential for increasing the credit granting capacity by up to R $ 12.7 billion," stated the director of the Financial and Resolution System Organization, João Manoel Pinho de Mello.

The Central Bank considers that the measure may promote incentives that make the flow of funds feasible to guarantee the liquidity conditions of small financial institutions, which often operate in segments that are poorly served by the largest institutions in the banking sector.

Property as collateral for more than one loan 

The measure provides that people who have paid part of their real estate financing can use the same property as collateral in other credit operations, including or not financing for the acquisition of property, with the same interest rate as the original real estate financing. In case of default of one of the guaranteed operations, the others are due in advance.

The potential is the generation of a credit volume of up to R $ 60 billion. “Anyone who has already paid part of a property can use that property as a guarantee in another banking operation,” explained BC Regulation Director, Otávio Ribeiro Damaso.