BRASILIA, Dec 16 (Reuters) - Brazil’s central bank loosened reserve requirement rules for banks in need of financial assistance, excluding emergency liquidity facilities from the calculation of reserve ratios, the bank said in a statement on Wednesday.
The central bank will also allow financial institutions to deduct up to 70 million reais ($17.94 million) in cash deposits from the calculation of their reserve requirements, up from 44 million reais previously.
Brazilian banks will be able to deduct up to 3 billion reais in credit operations for infrastructure projects from the calculation of reserve requirements for savings account deposits, the bank added in the statement.
The changes will help improve Brazil’s rules for reserve requirements, the bank said.
$1 = 3.9020 Brazilian reais Reporting by Silvio Cascione; Editing by Dominic Evans