Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Brazil candidate Gomes would reduce banking concentration

Stock MarketsSep 12, 2018 05:20PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Presidential candidate Ciro Gomes of the Democratic Labour party (PDT) gestures during a television debate at the Gazeta TV studio in Sao Paulo

RIO DE JANEIRO (Reuters) - Center-left populist presidential candidate Ciro Gomes vowed on Wednesday to reduce concentration in Brazil's banking sector if elected in October, warning that he would open the sector up to more foreign competition if necessary.

Gomes said 85 percent the country's bank transactions were in the hands of five banks: Banco do Brasil SA (SA:BBAS3), Caixa Econômica Federal (CEF.UL), Santander (SA:SANB11), Itaú Unibanco Holding SA (SA:ITUB4) and Banco Bradesco SA (SA:BBDC4).

By contrast, he said, the United States has "thousands" of banks competing by offering lower fees and interest rates to win more customers.

"The concentration here is criminal ... I want to do this to protect Brazil's financial system. If they don't understand, I will have to open the door to international banks and I don't want to do that," he said before a panel of journalists.

Gomes, who has moved up to second place this week in polls of voter intentions, explained his plan to help the 63 million people listed as delinquent debtors by Brazil's SPC Credit Reporting Agency.

If the banks offered discounted credit to individuals, the government would ask the central bank to reduce their reserve requirement, he said.

"Not a cent of public money will be spent and people will have the protection of the government to refinance their debt on civilized terms, he said.

The relief plan has been music to the ears of heavily-indebted Brazilians and contributed to his improved polling, though he trails far behind front-runner, the far right candidate Jair Bolsonaro.

The polls, however, show Bolsonaro losing against most of his main adversaries in a second-round run-off.

With popular former president Luiz Inacio Lula da Silva banned from running due to a corruption conviction, Gomes could well make the run-off and beat Bolsonaro, analysts say.

Gomes, who has touted his record for fiscal discipline as two-time governor Ceará, vowed to protect Brazilian industry, and pointed out that U.S. President Donald Trump was doing just that slapping import tariffs on steel and aluminum and other imports from China.

The candidate was interviewed by reporters from O Globo and Valor Economico newspapers and Epoca news magazine.

Brazil candidate Gomes would reduce banking concentration
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
João Paulo Magalhães Arumaa
João Paulo Magalhães Arumaa Sep 12, 2018 9:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Gomes is not even close to be a serious candidate down here. These media chanels defend the Left ideology, things are really difficult to believe in Brazil...
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email