Brazil banks to gain with new central bank rule

BRAZIL - A new regulation that requires banks to increase their deposit reserves with the central bank is expected to cause a gain of nearly 900mn reals (US$291mn) a year for the financial system as a whole, Brazilian daily Folha de Sao Paulo reported.

Funds deposited with the central bank will accumulate 18% interest, the same as the country's bench market interest rate.

The rule's objective is to increase the return on government bonds and slow the outflow of investment funds, which are

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