• Table of Contents

  • Bank license in Brazil? Obtain a Banking License in Brazil
  • Introduction
  • Requirements to get a bank license in Brazil
  • Benefits of getting a bank license in Brazil
  • Examples of banks that have obtained a banking license in Brazil
  • Conclusion

Bank license in Brazil? Obtain a Banking License in Brazil

Introduction

Brazil is one of the largest banking markets in Latin America, with a constantly growing banking sector. Brazilian banks have grown rapidly in recent years, with an increase in demand for quality banking services. This has led to an increase in competition between banks, which has prompted many companies to seek a bank license in Brazil. In this article, we are going to look at the requirements for getting a bank license in Brazil and the benefits it can offer.

Requirements to get a bank license in Brazil

To obtain a banking license in Brazil, companies must meet a number of criteria. First of all, they must be a public limited company (SA) or a partnership limited by shares (SCA). Companies must also have a minimum registered capital of 20 million Brazilian reais (about 3,5 million euros). In addition, companies must have a board of directors consisting of at least five members, two of whom must be independent directors.

Companies must also meet a number of financial criteria. They must have a minimum solvency ratio of 11%, a minimum liquidity ratio of 2%, and a minimum profitability ratio of 0,5%. Additionally, companies must have a minimum equity ratio of 8%.

Finally, companies must obtain approval from the Central Bank of Brazil (BCB) to obtain a banking license. The BCB reviews bank license applications on a case-by-case basis and may require additional information or documentation to assess the application.

Benefits of getting a bank license in Brazil

Obtaining a bank license in Brazil can provide many benefits to businesses. First, it allows businesses to provide a wider range of banking services, which can increase their customer base and revenue. Banks can offer services such as loans, savings accounts, credit cards, currency exchange services and payment services.

Also, banks can enjoy greater credibility and reputation by obtaining a banking license. Customers are more likely to trust a bank that is regulated and authorized by the BCB. This can help banks attract new customers and retain existing customers.

Finally, banks can benefit from greater protection by obtaining a banking license. Banks are subject to strict security and consumer protection regulations, which can help prevent fraud and abuse. Banks are also subject to regular reporting requirements, which can help prevent illegal activities such as money laundering.

Examples of banks that have obtained a banking license in Brazil

Several banks have obtained a banking license in Brazil in recent years. One of the most recent examples is the digital bank Nubank, which obtained a banking license in 2019. Nubank is a digital bank that offers online and mobile banking services. The bank has grown rapidly in recent years, with more than 20 million customers in Brazil.

Another example is the Santander Brasil bank, which obtained a banking license in 1982. Santander Brasil is one of the largest banks in Brazil, with more than 40 million customers. The bank offers a full range of banking services, including loans, savings accounts, credit cards and currency exchange services.

Conclusion

Obtaining a banking license in Brazil can provide many benefits to businesses, including the ability to provide a wider range of banking services, greater credibility, and better protection. However, companies must meet a number of criteria to obtain a banking license, including having a minimum share capital of 20 million Brazilian reais and meeting strict financial criteria. Companies must also obtain approval from the Central Bank of Brazil to obtain a banking license.