Government owned and the largest in the country in assets, Banco do Brasil received this week approval from China’s regulator to open a commercial branch in the country which is Brazil’s main trading partner.
Nevertheless before setting up business Banco do Brasil still needs further regulator approvals which could be forthcoming in 2013, said Paulo Rogelio Caffarelli, Senior Vice-president for international operations.
“To start with the bank must hire twenty locals to support the financial operations of the Brazilian companies with dealings in China” said Caffarelli during an event organized by BM/Bovespa.
China is recent years has displaced the US as Brazil’s main trading partner with annual bilateral exchange in the range of 50bn dollars. However Brazil exports mostly commodities, iron and soybeans, while China manufactured goods.
A the same event Banco do Brasil Financial president Ivan Monteiro said that the institution is planning to issue 8 billion Reais (approx. 3.9bn dollars) in the mortgage market..