BRASILIA, Oct 10 (Reuters) - Banco do Brasil, Brazil’s largest lender, agreed on Wednesday to end exclusivity contracts that prohibited some of its clients from acquiring payroll-deductible loans from other banks.
The deal was approved by Brazil’s antitrust regulator CADE, ending a 2010 case brought by civil servants who complained about the exclusivity contracts imposed by Banco do Brasil.
“This ends the requirement by Banco do Brasil for exclusivity in payroll-deductible (loan) contracts linked to public institutions,” said Marcos Paulo Verissimo, a member of the CADE board.
The deal applies to the current and future payroll-deductible contracts of civil servants.
As part of the deal, the bank will also pay 65 million reais ($31.87 million) to a fund administered by the justice ministry.
Shares of Banco do Brasil were down 0.61 percent at 1:15 p.m. local time (16:15 GMT) after starting the day in positive territory.
$1 = 2.0399 Brazilian reals Reporting By Leonardo Goy, Writing by Alonso Soto; Editing by Tim Dobbyn