Brazil Cuts Reserve Requirement to Boost Credit


Brazil’s central bank decided on August 20th to cut reserve requirements on term deposits, aiming to increase lending to the economy.

The central bank said it will allow financial institutions to use up to 60 percent of their reserve requirements on term deposits to either make new loans or acquire loan portfolios from other banks. 

The measure is expected to channel around BRL 10 billion (USD 4.5 billion) into credit and follows a similar step taken by the central bank in July that freed up BRL 30 billion (USD 13.6 billion). 

Brazil Cuts Reserve Requirement to Boost Credit


Joana Taborda | joana.taborda@tradingeconomics.com
8/20/2014 2:47:07 PM