Brazilians are finally getting some interest rate relief. For years, Brazilians had to deal with double-digit interest rates. Those rates made borrowing money a ridiculous option. Brazil’s high than high-interest rates forced people to find other ways to buy a home or a car. Credit in Brazil was a luxury for the wealthy. Banks didn’t lend money to average Brazilians, but that may be changing now that the Central Bank slashed the interest rate. The interest rate is now seven percent, and banks like Bradesco, the second largest private bank in the country, is preparing for an influx in consumer borrowing.
The Central Bank stresses the need for caution, but in spite of the warning, the members of the Central bank board are pondering another rate cut. Bradesco’s new Chairman and current CEO, Luiz Carlos Trabuco doesn’t worry about the wave of new borrowers that will be knocking on the doors of the 5,000 bank branches across the country. He knows the borrowing requirements his executive team set up will keep the bank on the right track, and they will keep the bad debt ratio low.
Luiz Carlos Trabuco may have the lending part of the banking business down pat, but the bank is going through some internal changes that could impact the bank’s stock price as well as the fiscal health of the bank. Chairman of the Board, Lázaro de Mello Brandão is retiring, so he is no longer a daily presence in the bank’s executive offices. At 91, Lázaro de Mello Brandão is one one of the oldest, if not the oldest, chairman in the history of Brazilian banking. President and CEO Luiz Carlos Trabuco is taking over as chairman, but he will keep his CEO title until a new CEO surfaces at the March 2018 annual shareholders meeting. Trabuco has a list of seven candidates, and all those men are current members of his executive team.
Trabuco isn’t worried about picking a replacement. Mr. Trabuco is not only a shrewd banker; he is also a people’s person thanks to his University of Sao Paulo degree in philosophy. He also did graduate work in psychology so he knows how to read people. That’s why he’s been so successful over the last 47 years. Luiz knows how to deal with people. While he was president of the insurance arm of the bank, Banco Seguros, he was instrumental in turning in record profit numbers. Trabuco was the Seguros president from 2003 to 2009. At the end of 2009, the Board of Directors gave him the role of president and CEO. Bradesco’s personable and competent CEO made Wall Street a believer. The bank’s stock is on Wall Street’s must-buy list for 2018 on terra.com.br.
All the candidates for the CEO position can do the job. They all know the internal workings of the bank, and they all contribute something to the financial health of Bradesco according to folha.uol.com.br. But one or two candidates stand out thanks to their recent efforts. Chief Tech executive Mauricio Machado de Minas could be the next CEO thanks to his work on Bradesco’s digital banking platform, Next. The man who put the 2015 HSBC acquisition together, Alexandre da Silva Glüher, is also a top candidate. But operations head, Josué Augusto Pancini, the man who keeps the 5,000 Bradesco branches functioning, could take over.
Seguros President Octavio de Lazari is also in the hunt for the job, and so it chief lending officer Domingos Figueiredo Abreu. Investment executive, Marcelo Noronha, and Human Resource executive, Andre Cano also have a shot at the head job.
Search more about Luiz Carlos Trabuco: https://economia.estadao.com.br/noticias/geral,prisao-dos-irmaos-batista-nao-impactam-risco-da-jbs,70001996105