Tuesday, September 07, 2010
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Posts Tagged ‘bcb’

BNDES making “life harder” at BCB, but public sector bank role real question

Brazilian development bank BNDES is clearly making the monetary policy role of central bank BCB more difficult, but the real question is what is the new norm for public sector banks in Brazil, Marcio Nakane of consulting firm Tendencias told BNamericas. Read more: BNDES making “life harder” at BCB, but public sector bank role real question

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CEF to hit markets for US$560mn in coming days, aims to diversify funding

Brazilian federal savings bank Caixa Economica Federal (CEF) will hit private sector capital markets for about 1bn reais (US$560mn) in coming days, as the bank works to diversify its funding base to keep up with strong loan growth, finance VP Marcio Percival told BNamericas. Read more: CEF to hit markets for US$560mn in coming days, aims to diversify funding

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BCB reworks capital requirements, leaving BB a little more pressed for cash

Brazil’s central bank BCB has announced a change in the capital requirement calculation based on talks at the G-20 and guidelines from the Bank for International Settlements (BIS) – a move that could put a little more pressure on the balance sheet of federally controlled Banco do Brasil (BB). Read more: BCB reworks capital requirements, leaving BB a little more pressed for cash

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Credit data shows public sector banks still lending, but spreads manage to rise

The data from Brazilian central bank BCB out on Wednesday (June 23) showed public sector banks staying just ahead of their private sector counterparts in lending, but the sectors showed an ability to hold up spreads in May, which may bode well for Bradesco and Itau Unibanco. Read more: Credit data shows public sector banks still lending, but spreads manage to rise

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Niche banks continue to hold their own in consignado, SME, but risks loom

Brazil’s niche banks in the consignado payroll-linked lending and SME segments are holding their own and making a good case for their unique business models, but they still face risks from bigger banks, Moody’s VP and senior credit officer Ceres Lisboa told BNamericas. Read more: Niche banks continue to hold their own in consignado, SME, but risks loom

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Credit growth in March of 1.1% marks more progress, with falling spreads, NPLs

Brazilian credit totaled 1.45tn reais (US$837bn) at end-March, up 1.1% from end-February, as falling spreads and non-performing loan (NPL) ratios marked further improvement in Latin America’s largest credit market, according to central bank BCB.

Credit was up 16.8% from end-March 2009, as retail credit again outperformed corporate. Retail hit 488bn reais, up 2.0% in the month and 18.6% in the 12-month comparison, while overall corporate reached 487bn reais, up just 0.2% and 4.6% respectively. Read more: Credit growth in March of 1.1% marks more progress, with falling spreads, NPLs

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BCB head says bank liquidity cushion still stands at US$46.7bn

Central bank BCB head Henrique Meirelles said that Brazilian banks still had a liquidity cushion of 81.9bn reais (US$46.7bn), even after moves by BCB to rein in stimulus measures on reserve requirements. In March, banks had 234bn reais in so-called compulsory deposits, Meirelles said in a presentation in the city of Porto Alegre. However, under the rules in place before the September 2008 crisis, banks would have been required to hold 316bn reais in reserves. Reining in this effective stimulus … Read more: BCB head says bank liquidity cushion still stands at US$46.7bn

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Meirelles Inclined to Stay at Brazil Central Bank, Reuters Says

March 31 (Bloomberg) — Brazilian Central Bank President Henrique Meirelles signaled to members of his party that he will remain in his post instead of resigning this week to run for office, Reuters said, citing an interview with a lawmaker. Read more: Meirelles Inclined to Stay at Brazil Central Bank, Reuters Says

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Banks’ option for 2-year bonds could make up 15% of funding by February 2011

With the decision to allow Brazilian banks to do local issues with a minimum term of two years, this new funding option could make up as much as 15% of the financial industry’s funding by February 2011, the president of midsize banking association ABBC, Renato Oliva, told BNamericas. Financial institutions received permission from national monetary council CMN to start the programs, which will be known as “Letras Financeiras” (LF), central bank BCB said in a statement on February 25. Read the full article.

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Public sector banks surpass domestic private sector, as credit grows 1.54% in November

Credit in Brazil totaled 1.39tn reais (US$789bn) at end-November, rising 1.54% from the end of October and 14.9% from end-November 2008, as the credit portfolios of the country’s public sector banks surpassed their domestic private sector peers, central bank BCB said in its monthly credit report. Retail credit grew 1.3% and 18.9% in the same comparison, reaching 465bn reais, while corporate credit came to 481bn reais, up 1.5% from end-October and 2.0% from end-November 2008. Read the full article.

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Macro stability best way to bring down interest rates, spreads – BCB head

Maintaining Brazil’s macroeconomic stability is the best way to help drive down long-term interest rates and spreads between funding costs and charged interest rates, central bank BCB head Henrique Meirelles said in a presentation to the congress of Brazilian construction. Such stability will drive down risk premiums on all credit and investment activity and lead to gains in credit access for housing and infrastructure, Meirelles said. Read the full article.

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Large-scale efforts to slow credit growth trend could be politically costly, says Febraban

Large-scale efforts to flatten Brazil’s credit growth path, as have been suggested by the central bank BCB, could be politically costly, chief economist Rubens Sardenberg at banking federation Febraban told BNamericas. “There’s a debate on what kind of measures the central bank might adopt in the future, in order to reduce the growth in the second half of next year, with an aim of reducing inflation in 2011 rather than in 2010,” Read the full article.

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Govt guidelines for card market regulation get tepid approval from analysts

The three-entity panel crafting Brazil’s changing regulation for its credit card industry has announced the broad strokes of its reform proposals, prompting tepid approval from analysts, who have been awaiting the moves for months. The central bank BCB, finance ministry and the justice ministry said in a joint statement that they would push for the end of exclusive arrangements between card brands and acquirers and the interoperability of POS terminals. Read the full article.

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Central bank to consider capital requirement on fast growers

Brazil’s central bank BCB will be considering a special capital requirement scheme on banks that it believes are growing too fast, Moody’s Brasil VP and senior analyst on Brazilian banks Ceres Lisboa told BNamericas. The idea would be to prevent the large growth of the loan portfolio of a single bank “from becoming a boom,” taking into account a given bank’s credit risk and growth that looks to be eating away at its capital base faster than expected, she said. Read the full article.

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Credit growth in July highest since October, pulled up by public sector banks

Brazil’s total credit portfolio grew to 1.31tn reais (US$701bn) at end-July, up 2.62% from end-June, showing the highest monthly growth rate since October last year as the country’s public sector banks markedly increased their market share, the latest data from central bank BCB show. Credit was 20.8% higher than 12 months prior, as retail credit worked its way up to 442bn reais, an increase of 1.7% from end-June and 19.7% from end-July 2008. Corporate credit fell 0.69% on the month, but was up … Read the full article.

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June credit growth shows fastest monthly pace in 2009, up 1.35%

Lending in Brazil in June showed its fastest monthly growth rate in 2009, reaching a total of 1.28tn reais (US$680bn) at the end of the month, up 1.35%, the latest figures from central bank BCB show. This marked a 19.7% rise over end-June 2008, as daily average credit disbursements in June hit 7.26bn reais, up 3.6% over May, but only 0.8% higher than June last year. Retail credit drove the upward push, rising 1.4% over May and 20.2% over 12 months before, ending June at 434bn reais. Read the full article.

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Financial institutions see profits down 36.6% in Q1

Brazil’s banks and other non-bank financial institutions had total net income of 8.40bn reais (US$4.33bn) in the first quarter of 2009, falling 36.6% from 1Q08, the latest figures from central bank BCB showed. BCB, which releases the composite figures for the over 1,800 institutions in the country each quarter, also found however that their total assets had increased 22.4% to 3.33tn reais. Total deposits were up 36.6% to 1.27tn reais, while shareholder equity hit 303bn reais, for an increase o … Read the full article.

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CEO: Standard Chartered’s bank license about client footprint, not BCB crackdown

Although Brazilian central bank BCB has been cracking down on representative offices, the local unit of UK bank Standard Chartered is angling for a local banking license in order to take advantage of increasing trade flows from Brazil to its clients in Asia, Africa and the Middle East, unit CEO Airton Villafranca told BNamericas. Standard Chartered has had a representative office in Brazil for more than 35 years, but the increasing trade between Brazil and the countries where it has built its c … Read the full article.

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Central bank head: Credit flows growing again after US$72.3bn in measures

Brazil’s average daily credit flows have passed the 2008 average, after the central bank BCB freed up close to 142bn reais (US$72.3bn) through its regulatory moves since September, the head of the institution, Henrique Meirelles, said in testimony to congress on Wednesday (Jun 3). Specifically, BCB has freed up 99.8bn reais in compulsory deposits for all banks and added 41.8bn in liquidity for midsize banks through a number of measures, including programs from deposit insurance fund FGC.

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