Brazil: Central bank considers tighter capital rules

Banks under scrutiny over lending growth; Central bank praised for its supervision

  Brazilian central bank president, Henrique Meirelles

Henrique Meirelles: about to get tougher

The Brazilian central bank is considering obliging banks with fast-growing loan portfolios to increase their capital requirements. Brazilian banks already have some of the toughest capital requirements of any sizeable economy (at 11% compared with the international standard of 8%). Until the sub-prime crisis, some analysts were critical of this, believing it hindered the growth of the credit markets and put a brake on the economy. But in the wake of the financial crisis, experts now laud the Brazilian model for having been so prudent.

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