As part of a broad government effort to reduce regulation and associated costs for businesses, the Brazilian Central Bank on Wednesday streamlined rules for reserve requirements. Such requirements refer to minimum cash amounts private banks must maintain on deposit with the Central Bank. The new rules sweep away a series of exemptions and deductions applied over the years to reserve requirements. They also unify compliance rules, making it necessary for banks to report reserves only once per week. The objective of the new rules is to simplify compliance, reduce banking costs and, ultimately, pass on savings to consumers in the form of lower interest charges on loans.
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