Connect with us


Central Brazil’s coping mechanism

For their reputation for outstanding performances during the crisis, the Brazilian banks have earned the trust. With the resilience to financial crises because of capitalization level which are higher than the international average with strict controls and prudent regulations with the implementations of Basel guidelines. The characteristics seem to have developed since the late 1990s when the process of banking consolidation strongly decreased the number of financial institutions, modernized customer service and diversified products, services and approaches of payment with the severe use of technology as well as the merging of a nationally integrated payments system. The professionalization of bank administration has been complemented by the official improvement of the sector, which presently seeks to adjust its business models to the guidelines for shielding and sharing customer data and for environmental, social and corporate governance (ESG).

During the course of 2019, a new strategic placement for BRB was accepted by its regulatory shareholders, and a drive for the transformation and innovation arose to improve the bank´s ability to compete and carry superior service, providing a unique experience to both individual and corporate customers, and clearly impacting the economic and social development of the Federal District. This new strategy plan was custom made to make advances in the expansion of the business and to diversify the customer base. Also to expand digital relationships with customers, recommence the institution’s capacity to donate to the economic and social development of the region in accumulation of improving the governance and internal controls, snowballing operational efficiency, training staff and mostly changing the organizational structure.

The impact of Covid, necessitated many social isolation and banned economic activities while spreading fear significantly impacted BRB’s agendas. An effort to re organize the internal processes to enable the remote working teams with automated assistance.  BRB also implemented government policies in Federal districts. A special credit program called Overcome Supera-DF in Portuguese was launched. This aimed at debt restructuring and offered the capital mainly to SMEs. 1, 50,000 families were served by the Federal District Government income transfer programs, which was also executed by the BRB. The registrations of eligible families were handled through mobile applications and electronic transfers of resources to debit cards that could be used in registered establishments digitally.

BRB’s presentation during the pandemic is echoed in figures presenting the expansion of its customer base by 25 percent and progress in its credit portfolio’s balance of 47.4 per cent. In return the share prices have increased, and the market capitalization of BRB has surpassed R$13.46 billion, a growth of 1,098 percent paralleled to the value of R$1.1 billion witnessed at the end of 2018.

On the future approach, The Brazilian Federation of Banks (FEBRABAN) pointed out that, since 2018, mobile banking (banking access via smartphone) has exceeded internet banking in account payments and transfers. On the other hand competition is also increasing in digital finances and its services provisions. The need for providing the financial products and services by the non-banking companies from the tech sector, lately called as fintechs has raised recently, especially after the pandemic struck and lockdown restrictions were high at stake.

 In addition, Brazil’s regulatory environment has pursued to strengthen the competition between traditional financial institutions and fintechs with the depiction of Open Banking’s rules for data sharing. 

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


Goldman banker hired by the Citi bank

Citigroup has hired Luisa Leyenaar-Huntingford from Goldman Sachs. This new hire is to co-head its global infrastructure franchise. Because, it seeks to win more business from cash-rich investment firms focusing on infrastructure deals. Leyenaar-Huntingford will be based in London. Responsibility will be shared with Todd Guenther in New York.

The pair will work closely with industry teams covering healthcare, industrials, natural resources and clean energy transition (NRCET), technology and communications. Leyenaar-Huntingford helped in the establishment of the Goldman’s infrastructure franchise in her time at the Wall Street bank. They will team up with Citi’s Iberia co-head of banking, capital markets and advisory (BCMA) Jorge Ramos will continue to be a senior member of the global infrastructure franchise.

The infrastructure sector is poised for further growth, according to the memo. The memo was released by Citi’s global co-heads of the alternative assets group Anthony Diamandakis and John Eydenberg, and its EMEA head of BCMA Nacho Gutierrez-Orrantia. There was significant private investment demand across the globe to deal with environmental, energy, transportation, waste, communication, digital and other social needs.

Continue Reading


Banks make slow progress on UK gender pay

Major banks in Britain made a slight dent in their gender pay gaps. Several insurers went backwards. Companies in Britain with more than 250 employees have been required to publish the difference between the pay and bonuses of their male and female employees. They got a reprieve due to the pandemic, last year. The financial services sector has shown one of the largest genders pay gaps in Britain. The lack of women in senior jobs is the main reason.

Pay gap data from 21 major financial institutions showed a narrowing in their average mean gender pay gap. This is just 0.4 percentage points. Banks alone had a pay gap which narrowed by one percentage point. Ann Francke, chief executive of the Chartered Management Institute said that the UK’s financial services industry has often been singled out. It really does have to get its house in order. Goldman Sachs had the widest gender pay gap in the year to April 2020. Goldman posted a gender pay gap of 51.8%. The bank told the staffs that narrowing the gap further was a critical priority. A spokesperson for banking lobby group UK Finance said, that there is clearly more still to be done.

FTSE 100 insurers Prudential, Legal & General and M&G reported a widening in their pay gaps. Prudential’s UK gender pay gap widened to 45.2%. M&G also reported a widening in its pay gap in the most recent year to 30.5%. The M&G spokesperson said that they are determined to narrow their gender pay gap and will do this by achieving better representation of women in all roles at all levels of our organization. Legal & General’s mean gender pay gap widened to 30.8%.

The insurer said that the legal & general is tackling the underlying causes of its pay gap. This is by creating a more diverse workforce and a more inclusive culture through sustained, long-term action. Admiral had a gender pay gap last year of 12.8%. The 21 firms surveyed were Barclays, HSBC, Lloyds, NatWest, Standard Chartered, Bank of America Merrill Lynch, Goldman Sachs International, JPMorgan, Morgan Stanley, UBS, Credit Suisse, Deutsche Bank, PGMS (a Phoenix unit), abrdn, Schroder Investment Management, St James’s Place, Legal & General, Prudential, Admiral Group, Aviva and M&G.

Continue Reading


BOJ to lower inflation target-Japan’s finance minister

Japan’s outgoing finance minister, Taro Aso, said that he had proposed lowering the central bank’s 2% inflation target. This is when the prices took a hit from plunging oil prices. He was the finance minister for nearly nine years. The slump in oil price was among the main reasons the government could not officially declare an end to deflation. In his final news conference as finance minister, Aso said that he proposed to Governor Kuroda that, with oil prices falling this much, it would be hard to achieve 2% inflation. Hence, the target must be lowered at some point. He stated this by referring to Bank of Japan (BOJ) chief Haruhiko Kuroda.

Aso also said that the governor said he would do his best to achieve the target. This is stated by adding that policymakers must scrutinise at some point, why the BOJ’s inflation target of 2% has not been met. The remarks highlight how the government and lawmakers distanced themselves from the BOJ’s target years ago, despite central bank reassurances that achieving the target was possible by maintaining or increasing stimulus.

Aso was deeply involved in negotiations with the BOJ. After Kuroda took over as governor, he deployed a massive asset-buying program. This is for pulling Japan out of deflation. Aso supported the BOJ’s stimulus efforts. He is a member of the cabinet. And also, had raised many doubts that monetary policy alone can reflate the economy out of the doldrums. New Prime Minister Fumio Kishida is set to form a cabinet.

Continue Reading