Brazil central bank raises deposit requirements

Thu Jan 31, 2008 6:16pm EST

BRASILIA, Jan 31 (Reuters) - Brazil's central bank said on Thursday it will increase mandatory deposit requirements from March 2008 on funds that banks receive from leasing companies.
All banks must make deposits with the central bank according to increasing rates that reach a maximum in January 2009 of 25 percent on total funds received from leasing companies, the central bank said in a statement.
The central bank did not specify what type of leasing companies the regulation would apply to.
"The continuing rise of such deposits made this source of funds important in comparison to the bank liabilities subject to obligatory deposits," the statement said.
Brazil's financial system had an estimated 160 billion ($90.9 billion) reais in deposits by leasing companies in November last year, the bank said. That compared to 130 billion reais in short-term deposits and 245 billion reais in savings deposits in December 2007.
$1=1.76 reais
(Reporting by Isabel Versiani and Raymond Colitt)