The goal is to increase the amount available to banks for lending so they can lower their interest rates, finance spending by companies and households and help boost the slowing Brazilian economy.
The central bank said compulsory bank reserves had risen from 194 billion reais ($88.18 billion) at the end of 2009 to 405 billion reais ($184.09 billion) at present, and that some of that money could be freed up to boost liquidity.
To increase the amount of available funds for lending, the central bank will allow financial institutions to use up to 50 percent of their reserve requirements on term deposits to either make new loans or acquire loan portfolios from other banks.
The central bank also increased – from 58 to 134 – the number of banks that can use up to 20 percent of their reserve requirements on loans to finance capital-goods investment.
It also eased minimum capital requirements for loans.