The Central Bank of Brazil issued a resolution allowing financial institutions to deduct mandatory advance payments of contributions to the Credit Guarantee Fund (FGC) from required reserves on demand and time deposits. The change is intended to neutralise the liquidity impact of the FGC’s advance collection. The FGC’s Board of Directors decided in February to require an advance of ordinary monthly contributions from its participants to rebuild its capital base. Under Resolution BCB No. 551, institutions may choose how to allocate the deduction between required reserves on demand deposits and on time deposits. The Central Bank estimates the measure could release BRL 30 billion in 2026, with required reserves rebuilt monthly as each advanced contribution comes due.
Central Bank of Brazil 2026-03-03
Central Bank of Brazil allows banks to deduct advance FGC contributions from reserve requirements, with an estimated BRL 30 billion liquidity release in 2026
The Central Bank of Brazil issued Resolution BCB No. 551, allowing financial institutions to deduct mandatory advance payments to the Credit Guarantee Fund (FGC) from required reserves on demand and time deposits. This measure aims to neutralize the liquidity impact of the FGC's advance collection and could release BRL 30 billion in 2026. Institutions can choose how to allocate the deduction between demand and time deposits.