Brazil to Create Credit Cooperative Guarantee Fund
Brazil will soon create a credit cooperative guarantee fund with an aim to supporting the efficiency and reach of the country's financial system, Brazilian Central Bank President Alexandre Tombini said Monday.
Brazil will soon create a credit cooperative guarantee fund with an aim to supporting the efficiency and reach of the country’s financial system, Brazilian Central Bank President Alexandre Tombini said Monday.
The guarantee fund will be independent and organized nationally among credit cooperatives and cooperative banks, he said.
Tombini made the announcement among a series of measures to improve efficiency of payment systems at a forum on financial inclusion.
"This is an important step in the creation of the national cooperative system," he said. "The efficiency of the financial system and the stability of the purchasing power of the currency are objectives that go hand-in-hand."
Brazil’s credit cooperative system includes 1,200 cooperatives with more than six million members. He noted the system has expanded 39% over the past two years to offer a volume of 40 billion Brazilian reais ($20 billion) in credit.
Among other measures announced at the event Monday were government plans to direct funds from bank cash deposits toward increasing microcredit.
Mr. Tombini also said that the government was working on new legislation to submit to congress to update regulations for payment systems.
The new legislation was currently under review by Brazilian President Dilma Rousseff, he said