BCB regulation expands scope for local consumer loan product

Bnamericas Published: Wednesday, February 04, 2009
Brazil's central bank BCB has changed regulation on a local consumer loan pool product known as "consórcios", allowing administrators to offer financing of services of any type instead of just real estate and physical goods, BCB said in a statement. Consórcios are lottery-financing businesses where participants pay monthly installments towards a house or a car, for example. Unless the participant who has paid the most into the group opts to buy the month's item, a lottery is held. The new rules, which also establish new fines and punishments for administrators and require better separation of administrators' property from that of their clients, come into effect on February 6. There were 3.6mn members of consórcios in Brazil by end-November 2008, up 4.6% from the same time in 2007, according to the latest figures from the national consórcios administrators association ABAC. Bradesco (NYSE: BBD), Itaú (NYSE: ITU), HSBC (NYSE: HBC), Panamericano, Porto Seguro, Santander (NYSE: STD) and several automaker-connected banks are among the banks and insurers that act as administrators in this segment.

To continue reading, subscribe to BNamericas to get all the information in this article and access to related news items and reports.

Subscribe to BNamericas and gain access to thousands of project profiles, key contacts and news.

Other projects

Get key information on thousands of projects in Latin America, from current stage, to capex, related companies, key contacts and more.

  • Project: Iman
  • Current stage: Blurred
  • Updated: 3 days ago
  • Project: Block 95
  • Current stage: Blurred
  • Updated: 3 days ago

Other companies in: Banking (Brazil)

Get critical information about thousands of Banking companies in Latin America: their projects, contacts, shareholders, related news and more.

  • Company: Câmara Interbancária de Pagamentos  (CIP)
  • Câmara Interbancária de Pagamentos (CIP) is a non-profit organization that operates as clearing house for the Brazilian Payment System (SPB). It is in engaged in creating, devel...
  • Company: Banco Daycoval S.A.  (Banco Daycoval)
  • Brazilian lender Banco Daycoval S.A. focuses on serving corporate clients such as small and medium-sized enterprises. In 2006, it entered the retail lending segment, providing v...
  • Company: Banco Original S.A.  (Banco Original)
  • Banco Original is a Brazilian financial institution that supports the agribusiness sector through loans, working capital, and financial and strategic consultancy. Its services i...
  • Company: Serasa Experian S.A.  (Serasa Experian)
  • Serasa Experian is a Brazilian credit research firm that offers digital certification, marketing and sales consultancy, fraud protection, and economic analysis, among other serv...