Brazil: BCB opens up credit fintechs to foreign capital
Central bank taking further action to lower credit costs through competition; Banco Inter’s post-IPO growth shows digital banking opportunity.
Brazilian president Michel Temer signs decree 9,544 before leaving office
Brazil’s central bank (BCB) has taken another step to increase the competitive forces in the country’s highly consolidated banking system by authorizing foreign investors to own up to 100% of credit fintechs.
Brazilian president Michel Temer, who will leave office on January 1, signed decree 9,544 as part of BCB’s ‘+ Agenda’, which aims to stimulate innovation and competition in the credit markets.
The bank said it expects this will speed up foreign entrants into the market for providing loans to Brazilian consumers and companies.
This is the latest rule change to foster competition in the banking system and follows BCB’s introduction of a lighter regulatory regime for fintechs, as well as its decision not to allow Itaú to pursue its majority purchase of XP Investimentos.