LATIN AMERICA ADVISOR

Financial AMERICA ADVISOR

A daily publication Of the dialogue

October 31, 2023

Will New Loan Rules in Brazil Help Banks & Borrowers?

Brazil’s Congress in early October approved new loan guarantee rules. President Luiz Inácio Lula da Silva’s government has sought to expand access to credit in an effort to boost economic growth. // File Photo: Brazilian Government.

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Mario Mesquita, chief economist at Itaú Unibanco: “The measure aims to lower credit rates and increase approval rates, essentially boosting credit volumes at lower costs for the client and the bank. One of the main reasons behind Brazil’s high interest rates for loans stems from the hurdles banks face to recover assets given as collateral. Only 15 percent of guarantees are retrieved in Brazil as compared to an average of 40 percent in emerging countries and 80 percent in developed countries, according to Febraban. The main headwind for credit recovery is the lengthy and customer-centric judicial process required to retrieve the asset. The new guarantees regulation, approved in early October, aims to solve this issue as it…”

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Scotiabank Plans to Cut 3% of Work Force
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ABOUT THE financial services ADVISOR

Covering Latin America’s banking and insurance sectors, remittances trends and data, micro lending issues, new technologies in the industry, anti-money laundering regulations, and much more, the Inter-American Dialogue’s biweekly Financial Services Advisor, a sister publication of the Latin America Advisor, gives readers fresh insight and diverse viewpoints from financial sector leaders. To subscribe or for more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

Subscribers

Staff

Gene Kuleta
Editor
P. 202.463.2920
E. gkuleta@thedialogue.org

Carl David
Goette-Luciak
Reporter

Nili Blanck
Reporter

board of advisors

Ernesto Armenteros
Vice Chairman
of the Board,
Banco de Ahorro y Credito Union

Jimena Blanco
Chief Analyst,
Verisk Maplecroft

Richard Child
CEO,
Mattrix Group

Michael Diaz
Partner,
Diaz, Reus & Targ, LLP

Ernesto Fernández Holmann
Chairman of the Board,
Ayucus

Desiree Green
Vice President,
Int’l Gov’t Affairs,
Prudential Financial

Earl Jarrett
Deputy Chairman & CEO
The Jamaica National Group

Barbara Kotschwar
Professor of Political Economy,
Georgetown University

Thomas Morante
Attorney,
Carlton Fields

Manuel Orozco
Senior Fellow,
Inter-American Dialogue

Adalberto Palma Gómez
Senior Partner,
Aperture SC

Rodolfo Pittaluga
Adjunct Professor,
Florida International University
College of Law

Roberto Teixeira da Costa
Founder & Board Member Emeritus, CEBRI

Mario Trujillo
CEO,
DolEx Dollar Express

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