November 13, 2018 / 11:45 PM / a year ago

UPDATE 1-Bradesco CEO says Brazil banks to deliver proposal to cut loan rates

(Adds context, quotes from interview)

By Tatiana Bautzer, Carolina Mandl and Rodrigo Campos

NEW YORK, Nov 13 (Reuters) - Brazil’s main banking lobby is going to deliver proposals aimed at reducing loan interest rates to President-elect Jair Bolsonaro once he is inaugurated in January, Bradesco’s Chief Executive Octavio de Lazari told Reuters on Tuesday.

Lazari said in an interview on the sidelines of an event hosted by the bank in New York that the proposals from industry group Febraban will include revamping Brazil’s bankruptcy law and reducing mandatory notary services that elevate credit costs.

The move comes as Brazil’s central bank has been looking for ways to cut consumer interest rates that average around 260 percent annually for revolving credit lines, according to central bank data. That compares with 6.5 percent for the country’s benchmark Selic rate.

Lazari said the bank expects its loan book to grow at a faster pace in 2019 than this year, as the Brazilian economy accelerates. Its corporate loan book is expected to grow close to 10 percent in 2019, and credit to individuals may grow at even higher rates, he said.

Bradesco expects to close 150 branches this year and another 150 branches next year, Lazari said.

Lazari said Bradesco expects its digital bank Next to reach break-even by June. The digital-only bank has 500,000 clients, a fraction of Bradesco’s 24 million checking account holders. (Reporting by Tatiana Bautzer, Carolina Mandl and Rodrigo Campos; editing by Christian Plumb and Cynthia Osterman)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below