Brazil's Central Bank Prepares Measures to Curb Household Indebtedness, Sources Say
BRASILIA — Brazil's central bank is preparing a package of measures to curb rising household indebtedness, including stricter disclosure requirements for lenders, while studying foreign regulatory models that limit access to unsecured credit based on borrowers' income, two people involved in the discussions told Reuters.
The move reflects growing concern among policymakers over household debt levels and the rapid expansion of unsecured lending. The central bank has already signalled it plans to unveil measures to tighten oversight of unsecured credit, including credit card lending. The measures are expected to be rolled out gradually, with any increase in capital requirements unlikely to feature in an initial package, the sources said. The central bank declined to comment.
Household finances have become a central issue in Brazil's presidential campaign, with President Luiz Inacio Lula da Silva rolling out measures to boost consumers' purchasing power amid record consumer indebtedness in Latin America's largest economy. Lula unexpectedly finished behind right-wing Senator Flavio Bolsonaro in the first round of voting, setting up a runoff on Sunday that recent polls show Bolsonaro narrowly favoured to win.
While digital channels have broadened access to credit and lowered borrowing costs, they have also made loans easier to market, approve and disburse than ever, raising questions about responsible lending, Reuters reported. One proposal under consideration would require lenders to conduct more rigorous assessments of borrowers' financial circumstances before extending credit.
Source: GSM · USA (original Chinese edition)
Photo: 巴西利亚的巴西中央银行总部大楼。图片：© Banco Central do Brasil / CC BY 2.0，Wikimedia Commons
