Arab Today, arab today brazil eases reserve rules to support smaller lenders
Last Updated : GMT 00:57:03
Arab Today, arab today
Arab Today, arab today

Brazil eases reserve rules to support smaller lenders

Arab Today, arab today

Arab Today, arab today Brazil eases reserve rules to support smaller lenders

Brasilia - Arabstoday

Barazil\'s central bank provided a lifeline to small-sized lenders facing a funding squeeze amid Europe\'s deepening debt crisis by encouraging bigger rivals to purchase some of their assets. Under new rules by the monetary authority banks will be allowed to use part of their reserve requirements to purchase credit portfolios and longer-term bonds — known as letras financeiras — from banks whose capital doesn\'t exceed 2.2 billion reais (Dh4.33 billion). If they don\'t, they\'ll be punished by losing 11 per cent interest payments on some of the funds they\'re required to deposit at the central bank. \"The measure is positive and helps increase the volume of credit in the Brazilian economy because middle-sized banks have a capacity to generate credit that bigger ones don\'t,\" said Ricardo Gelbaum, executive financial director for Banco. Compliance scrutiny Article continues below The shift in reserve rules comes as President Dilma Rousseff\'s administration is trying to expand credit to reignite economic growth that stalled in the third quarter. Starting February 24, the central bank will no longer pay interest on 27 per cent of funds that banks are required to hold at the monetary authority as reserve requirements for time deposits. That threshold will rise to 36 per cent starting on April 27. Currently reserve requirements on time deposits are paid the country\'s benchmark rate, which stands at 11 per cent. Authorities have boosted efforts in the past year to promote consolidation in Brazil\'s banking industry as overleveraged, smaller lenders lose access to overseas funding at the same time they\'re preparing to adhere to tougher, new accounting standards. In April, the nation\'s guarantee deposit bank, known as the FGC, funded the acquisition of Banco Schahin by Banco BMG, a lender focused on payroll-deductible loans. In October, the central bank then ordered the liquidation of Banco Morada.  

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today brazil eases reserve rules to support smaller lenders Arab Today, arab today brazil eases reserve rules to support smaller lenders

 



Arab Today, arab today
Arab Today, arab today Heart of Turkish Riviera is Alluring Seaside Escape

GMT 11:11 2017 Tuesday ,28 March

Heart of Turkish Riviera is Alluring Seaside Escape
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Russia, Iran ink economic deals

GMT 08:03 2017 Wednesday ,29 March

Russia, Iran ink economic deals
Arab Today, arab today Media host gives priority to problems of people

GMT 07:00 2017 Tuesday ,28 March

Media host gives priority to problems of people
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Disaster costs nearly double to $175bn

GMT 10:42 2017 Tuesday ,28 March

Disaster costs nearly double to $175bn
Arab Today, arab today Campaign fights sexual harassment in Egypt

GMT 11:14 2017 Tuesday ,28 March

Campaign fights sexual harassment in Egypt
Arab Today, arab today Trump moves to roll back Obama climate measures

GMT 08:39 2017 Wednesday ,29 March

Trump moves to roll back Obama climate measures
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Mercedes, VW recall million vehicles in China

GMT 09:16 2017 Wednesday ,29 March

Mercedes, VW recall million vehicles in China
Arab Today, arab today Uber grounds self-driving cars

GMT 09:11 2017 Monday ,27 March

Uber grounds self-driving cars
Arab Today, arab today Trump poised to roll back climate protections

GMT 09:28 2017 Tuesday ,28 March

Trump poised to roll back climate protections

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 11:10 2017 Monday ,27 March

Trump to roll back Obama clean power plan

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 11:55 2017 Wednesday ,29 March

Need ‘gymspiration?’ The top fun fitness bloggers

GMT 09:02 2017 Thursday ,23 March

Laptop ban sparks ire

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 05:17 2017 Wednesday ,29 March

Samsung to sell refurbished Galaxy Note 7s

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday