Bradesco, Unibanco buy loan portfolios from rivals

SAO PAULO, Oct 14 (Reuters) - Two of Brazil's largest banks on Tuesday said they purchased loan portfolios of smaller rivals, taking advantage of benefits the central bank offered as part of a bid to strengthen the domestic financial system.

Bradesco (BBDC4.SA)(BBD.N), the country's largest private-sector bank, bought a portfolio of personal loans backed by workers' salaries and a vehicle financing portfolio, a spokesman for the bank said. It did not say if the portfolios belonged to one financial firm or two.

"Bradesco has always bought credit portfolios of other banks," the spokesman said, without providing further details of the transactions.

Unibanco UBBR11.SAUBB.N said it purchased payroll-backed loan portfolios from two firms. It declined to provide additional details about the deals, including the name of the firms that sold the portfolios.

Unibanco did say, however, that it was studying the acquisition of loan portfolios owned by three other financial firms. It added that recent measures taken by the central bank to facilitate the acquisition of loan portfolios of companies in distress made the purchases possible.

Brazil's central bank has eased reserve requirements several times in recent weeks, freeing up cash for banks to acquire credit portfolios from smaller businesses in distress. (Reporting by Alberto Alerigi Jr, Writing by Todd Benson; Editing by Maureen Bavdek)