Brazil’s Caixa Bank Lowers Overdraft Interest Rate to 4.99 Percent per Month

RIO DE JANEIRO, BRAZIL – “Caixa is giving back to society, and in particular, to the most modest, the record results it achieved, reducing the overdraft interest rate to below five percent.”

“We are committed to equality, to the distribution of income. This is entirely mathematical and meritocratic,” said Pedro Guimarães, president of the bank.

“This 4.99 percent interest rate is still extremely high. We are continually studying Brazil’s ongoing economic improvement, and we will be able to continue lowering rates, but the potential downturn also leads to an increase,” Guimarães said.

Caixa additionally announced a new line of housing credit indexed to the IPCA (Broad National Consumer Price Index), with rates from 2.95 percent per year plus the IPCA, representing a 40 percent lower rate in relation to the financing indexed to the TR (Reference Tax).

Results

Caixa Econômica Federal’s net income increased 66.7 percent in the third quarter of the year over the same period in 2018. According to the bank’s balance for the third quarter released yesterday, November 12th, net income reached R$8 billion. Compared to the second quarter, net income rose by 90.6 percent, when a profit of R$4.212 billion was recorded.

Caixa also announced that more than a thousand new service points will be opened by March 2020.

Source: InfoMoney