Brazil sees the implementation of Basel III regulations as a challenge, central bank President Alexandre Tombini said.
Brazil will adopt an “adequate” schedule when putting those regulations in place, he said at an event yesterday hosted by banking federation Febraban in Sao Paulo.
“We are certain that adoption in Brazil will be done without disturbances,” Tombini said, adding that the central bank created this week a unit aimed at overseeing financial system conduct.
Some nations are struggling to meet a Jan. 1, 2013 deadline for starting to apply the revised Basel III rules, which were drawn up to prevent a repeat of the financial crisis that followed the collapse of Lehman Brothers Holdings Inc. Countries have six years to phase in the changes.
Since August 2011, the administration of President Dilma Rousseff has reduced benchmark interest rates to record lows, pressured banks to cut lending costs and increase borrowing and lowered bank reserve requirements to jumpstart economic growth. Brazil’s economy will grow 1.03 percent this year, the lowest among major emerging markets, according to the latest central bank survey of about 100 economists.