(Adds measure details, central bank director's comments,
BRASILIA Jan 24 Brazil's central bank said on
Tuesday it will streamline reserve requirement rules to reduce
the management costs of financial institutions without impacting
The central bank scrapped about 15 deduction rules, many
established during the 2008 global financial crisis, to simplify
the process for banks as well as to unify calculation periods
for term, demand and savings deposits.
The government of President Michel Temer has announced a
series of microeconomic measures to reduce the debt burden of
consumers struggling to pay their bills after two years of
"We are working to create a more positive macroeconomic
environment that in time will reduce credit costs," central bank
Monetary Policy Director Reinaldo Le Grazie told reporters,
adding that the bank cannot estimate how much the banks will
save with the measure. "We can't do magic."
In December, central bank Governor Ilan Goldfajn announced
the creation of a mechanism in which the bank pays interest on
excess reserves kept at the bank to increase the efficiency of
Under Goldfajn, the bank has stepped up monetary easing,
cutting its benchmark Selic rate by a whopping 75 basis points
to 13 percent at its last meeting on Jan. 11.
Goldfajn has also vowed to look for ways to reduce the
interest rates charged by credit card companies, which at times
top 400 percent a year in Brazil.
Reserve requirements are monetary policy tools in which
commercial banks are forced to keep part of their reserves at
the central bank to control the volume of money in the economy.
(Reporting by Alonso Soto and Silvio Cascione; Editing by Chris
Reese and Alan Crosby)