Brazil’s central bank cut capital requirements for some consumer loans with maturities of up to five years, including car loans, as it seeks to fine tune measures taken last year to prevent excessive risk in the financial system.
The monetary authority cut capital requirements for some loans with shorter maturities, while raising them on some other loans with maturities that exceed 60 months. Banks are required to set aside capital of between 8.25% and 33% depending on the risk level of a loan, the bank said in a statement.
Traders are betting the Brazilian central bank will cut its benchmark interest rate by a further 1.75 percentage point, to 9.75% by May.
In practical terms the central bank cut capital requirements for auto loans with maturities of less than 5 years, which could make it easier for consumers to access credit for car purchases. Vehicle sales in Brazil fell to 280,567 units in October, down 7.5% from a year earlier and 10% less than in September, automakers association Anfavea said this week.
The bank maintained at 15% the monthly minimum payment required on credit card loans. The bank said the adjustments are of a “prudential character” and are aligned with its mission of improving regulation of the financial system.
Brazil last year raised capital requirements on some consumer loans in a bid to stem credit that is growing at around a 20% annual pace. Brazil’s industrial production contracted 2% in September, the second biggest fall since the decline that followed the collapse of Lehman Brothers in 2008.
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now that is a lot of motors,Nov 12th, 2011 - 06:12 pm 0
what you need to move it,
is perhaps some petrol lol.