Introduction to Deposit Certificate

The Deposit Certificate module manages the egistered fixed income security issued by CCB Brazil as time deposits, with remuneration and maturity negotiated at the time of the investment. The remuneration rate on CDBs can be fixed, linked to the CDI rate, the Selic rate or price indexes (IPCA or IGP-M), and taxed according to the regressive withholding tax.

Click here to understand the terms and abbreviations used in this module.

CDB Pre-fixed and Post-fixed Products

CDB pre and post fixed (banking deposit certificates) issued by the financial institutions, are a kind of products that have attributes that constitute the unique features of this type of private issue negotiated in the Brazilian market

These products allows in advance partial or total withdrawal transactions. When these types of transactions are generated, it is necessary to make transactional entries because some of these entries are necessary to include within the functionality of the Temenos Transact system to cover the regulatory requirement demanded by Brazil.

CBD products are classified as pre fixed and post fixed. These products allows in advance partial or total withdrawal transactions.

Information for the registration of the CDB Arrangements in Temenos Transact is shared with CETIP and CETIP sends the CEITP code information, which is updated in Temenos Transact.

CDB products are created according with Brazilian market conditions. All the products have the following:

• New properties.
• New tax rates.
• Basic rate and basic interest.
• Periodic interest.
• New soft property class.
• New balance types.
• New enquiry.
• New product conditions.
• New product group.
• New products.
• Maturity.

In the Brazilian market, Bank Deposit Certificates (CDB) are deposits placed by customers. During the life of the deposits, the customers can request partial or total withdrawal of a deposit.

When the customer requests for a withdrawal, different validations laid down by regulation are done and taxes are collected. The accounting is done as laid down by the regulation.

This functionality allows users to perform partial and total withdrawal of CDB deposits as per the regulatory requirement demanded by Brazil.

When a partial or total withdrawal transaction is raised, the user can view the various types of values calculated to comply with the regulatory requirement using the BRDEPO.ADVANCE.WITHDRAWAL enquiry.

The net amount requested is calculated, considering the negotiation rate, redemption income, tax amount IOF and tax amount IR. The transactional entries reverse the interests affected during the advance withdrawal.

A new EB.LOOKUP record called BRDEPO.CETIP.CODE*BR0010001 is created to store the CETIP account number for the particular branch of the bank. The CETIP account number will be stored in the Other Info field. This value is mapped to the CETIP account number in the BRDEPO.ADVANCE.WITHDRAWAL enquiry.

As per the regulation, some conditions have to be validated when an early withdrawal is requested by the customer.

Periodic attributes have been created and attached to the Activity Restriction product condition for the CDB products to perform the validations. Based on the periodic attributes classes created, new periodic attributes were created and attached to activity restriction product conditions to perform the required validations.

An activity restriction condition BRDEPO.CDB.PREFIXED-USD—20100101 is attached to the CDB prefixed products to validate the rules below:

• Number of withdrawals allowed in a day is 1.
• The withdrawal amount is less than or equal to the difference between the available principal and the locked amounts.
• There is no scheduled future withdrawal.
• The effective date of the withdrawal is not earlier than the latest backdated withdrawal.

Full Withdrawal Reports

The Full Withdrawal Reports functionality allows the user to generate an XML file for the positive register of the prefixado deposits for today’s date activities.

The BRBASE.POSITIVE.REGISTER*COMPANYCODE record from the EB.LOOKUP application is reused to store the company code of CETIP (Center for Custody and Financial Settlement of Certificates and Bonds).

The BRDEPO.EARLY.WITHDRAWAL.REPORT record is created in the DFE PARAMETER application to store the output directory for the early withdrawal report.

Two records are created in the DFE MAPPING application to store the mapping of the information of the registers of Prefixado deposits for today’s date activities which product attribute is CDB.WITHDRAWAL, the BRDEPO.EARLY.WTHDWL.REP.HEADER record for the header, and the BRDEPO.EARLY.WITHDRAWAL.REPORT record for the details.

The BRDEPO.EARLY.WITHDRAWAL.REPORT service is created in the TSA.SERVICE application to generate the file.

When a withdrawal is made, the CDB functionality will store the arrangement reference in a concat application to improve the performance of the interface. The interface will select the records from concat application instead of the arrangement application. Once the process is completed, the interface will delete the records from the concat application which are already processed.