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Brazil: Banks get early antitrust approval for credit bureau

By  |  September 5, 2016

A preliminary report from Brazil’s antitrust authority Cade recommended approval of a joint venture by Brazil’s largest banks to start a credit research bureau, the agency said on Monday.

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    The credit research company, called Gestora de Inteligência de Crédito, will gather information on the bill-paying history of both Brazilian consumers and companies with the aim of bringing down default rates and the cost of credit in a harsh downturn.

    The recommendation to approve the venture now needs to be confirmed by Cade’s tribunal, the statement said, without giving a date for a final decision. Approval will hinge on the parties signing a control agreement, known as an ACC, Cade said.

    Last January, state-controlled Banco do Brasil SA and Caixa Econômica Federal teamed with private-sector banks Itaú Unibanco Holding SA, Banco Bradesco SA and Banco Santander Brasil SA to create the research unit. Each of the banks will take a 20 percent stake in the joint venture.

    The implementation of a credit-scoring company rewarding prompt payers is seen by policymakers and bankers as a way to help bring down credit costs amid rising defaults in Brazil’s harshest recession in the past 80 years.

    Full Content: Reuters

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