By Maria Carolina Marcello
BRASÍLIA (Reuters) – The Chamber of Deputies on Wednesday approved a bill that amends the rules on guarantees for obtaining loans, extinguishes the Caixa Econômica Federal monopoly for the attachment of assets and still makes room for other institutions, in addition to the banks, can manage assets offered in the process.
The proposal creates, for example, the figure of the Guarantee Management Institutions (IGG), which will be able to evaluate the goods given as guarantees, and negotiate conditions for the granting of a loan. The initiative was adopted with the intention of increasing competition between banks and facilitating the performance of so-called Fintechs, which would help to reduce interest rates.
A point brought up by the text that received criticism from the opposition in plenary concerns the possibility of the same property being given as collateral in more than one loan. There is also permission for attachment of family property, which is currently not permitted by law.
Deputies warned that the measure could give rise to the problem that resulted in the 2008 financial crisis involving “bad bonds” in the US mortgage market that generated a housing bubble.
After the amendments are analyzed, the text will go to the Senate.
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