"The arsenal that the Central Bank has today is too large to combat any type of crisis." The speech is by the president of the institution, Roberto Campos Neto, during a press conference this Monday (23).
Showing tranquility, Campos Neto spoke of the importance of liquidity in banks operating in Brazil, due to the negative effects of coronavirus on the financial market.
“We have no problems with bank balance sheets. They are liquid, with capital and with plenty of conditions to lend ”, he said.
Brazil should not use US credit
Regarding the $ 60 billion credit line made available to Brazil by the United States central bank (Fed) last week, Campos Neto hopes that there is no need to use it. However, he said, "it is important insurance in a time of crisis".
"We understand that there is no need to do this in the short term," he said.
Central Bank and the 2008 crisis
The president also compared the crisis caused by the coronavirus with the global crisis in 2008. According to him, the current one is quite different.
As he detailed, in the 2008 crisis the fear of bankruptcy affected banks. Today in Brazil, he said, banks have plenty of money, unlike that time.
“We are seeing a crisis now that is totally different, it is not a crisis of financial leverage. It is very different from what happened in 2008 that basically the uncertainty was whether the bank was going to fail or not ”, he stressed.
According to him, the crisis is now much more in the real sector, caused by social distance and a break in the production chain.
Banks announce measures against crisis
In the face of the crisis, the Central Bank will grant loans to financial institutions to provide liquidity to the secondary corporate debt market.
Banco do Brasil and Santander have also announced credit lines for individuals and companies.
BB expanded its credit lines by R $ 100 billion, a measure that should benefit 13 million customers.
For companies, the state bank will increase the resources available for working capital, investment and prepayment of receivables lines by R $ 48 billion.
Santander announced an increase of 10% in the limits of credit cards with payments on time. The institution also decided to anticipate to April the total payment of the 13th salary of its 47 thousand employees.
Itaú Unibanco, Caixa and Bradesco have so far announced only the extension of debts – up to 60 days for current operations.
Of the digital banks, C6 was the main one to announce concrete measures; Nubank – who is silent on social networks – and Neon just talked about preventing Coronavirus.
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