A group of entities representing the financial sector released a note in defense of the president of the BC (Central Bank), Gabriel Galípolo, and the autonomy of the authority.
The manifesto comes after consolidating the BC’s financial autonomy.
“The entities recognize the urgent need to reinforce the budget and staff, so that the Body can continue to carry out its arduous task of regulating, supervising and inspecting a gigantic financial system, which every day becomes even larger and more complex, with the incorporation of new business modalities, new models of financial institutions, in addition to the growing demands on the use of modern technologies”, says the note.
14 entities signed the document:
- Febraban: Brazilian Federation of Banks;
- Abac: Brazilian Association of Consortium Administrators;
- ABBC: Association of Brazilian Banks;
- ABBI: Brazilian Association of International Banks;
- Abracam: Brazilian Foreign Exchange Association;
- ABCripto: Brazilian Cryptoeconomics Association;
- Abecs: Brazilian Association of Credit Card and Services Companies
- ABFintechs: Brazilian Fintech Association;
- Abipag: Brazilian Association of Payment Institutions;
- Abranet: Brazilian Internet Association;
- Anef: National Association of Financial Companies of Automakers;
- Acrefi: National Association of Credit, Financing and Investment Institutions;
- Apiimf: Association for the Interoperability of Financial Market Infrastructures;
- Zetta: Association that brings together technology companies operating in the financial and payments market.
“Putting Brazil in line with other economies in the world not only gives the Regulator more tools, but also reduces the country’s perception of risk, guarantees more stability in monetary policy and paves the way for a modern and current financial system”, emphasize the entities.
“Only with an independent, strengthened and competent Central Bank that is up to its challenges, the Brazilian population and productive sector will be able to benefit from a healthy and sustainable financial system, capable of avoiding crises that could severely affect the national economy, the credibility of the sector, and impose additional costs on society”, they conclude.
A CNN Brazil found that the Ministry of Finance worked with the government leadership to prevent the proposal from moving forward at this time.
Interlocutors state that, given the concern about the impact of the measure on the municipality’s political and budgetary control.
with technical, operational, administrative, financial and budgetary autonomy. In practice, the BC would no longer be an agency linked to the federal public administration and would begin to operate without subordination to ministries.
The text foresees a significant expansion of the already existing independence of the monetary authority. Currently, the agency has operational autonomy, with fixed terms of office for the president and directors.
The new proposal guarantees greater administrative freedom, its own budget and less dependence on the National Treasury for expenses, structure and personnel.
Within the government, there is fear that the measure will set a precedent for other authorities, such as Cade (Administrative Council for Economic Defense) and the CVM (Securities Commission), to also start claiming similar financial autonomy.
With information from Larissa Rodrigues, from CNN Brasil
