Conditions for interest rate cuts are already in place, BB CEO says
The first woman to lead Banco do Brasil (BB) in its 214-year history, CEO Tarciana Medeiros, 44, agrees with the government’s appeals and believes that the conditions are already in place for the Central Bank to begin lowering the key interest rate Selic, which currently stands at 13.75% per year. "The interest rates cannot remain at the current level for a long time," she told Valor in her first interview with a news outlet since she took over the state-run bank - exactly 100 days completed this Wednesday. "A very high interest rate inhibits economic activity and slows down the economy."The presentation of the fiscal plan, she said, will help with the "sustainable reduction" of the interest rate. "Society and companies have always sought to adapt to the level of the key rate, but this is an effort that has a limit and a maturation time."Appointed by President Luiz Inácio Lula da Silva, Ms. Medeiros has worked for Banco do Brasil in the past 23 years. She highlighted her administration’s strategy of supporting micro and small businesses (MPEs) in particular, stressing that there will be no credit slowdown by BB at a time of concern from the government and the market. She said that in the first 100 days of this year, the bank grew 34% in credit granting to the segment (including working capital, receivables, and investments). In the entire corporate portfolio, including the wholesale sector (medium and large companies), the growth was 14%, with R$48.9 billion released."I’m not worried at the moment," she replied when asked if there was a credit crisis in the country. Nevertheless, she said the bank launched in advance specific strategies for debt renegotiation - an increase of 40% compared to last year (equivalent to R$2.5 billion). She also said that there are no upsets in default rates, even for MPEs and individuals, areas of great concern for the government.In line with private banks, Ms. Medeiros agrees that it is necessary to make a study of the credit card sector before imposing an interest rate cap on revolving credit, a desire of Finance Minister Fernando Haddad. "There are deeper discussions that need to be made before setting a cap or not," said the executive.Read below the main excerpts from the interview:Valor: You are the first woman to head BB and you completed 100 days as CEO last Wednesday. What have you done so far?Tarciana Medeiros: I am making sure to work as a conglomerate, with all the companies. The first objectives have already been achieved and I would like to mention the creation of a strategic, formal, and institutional diversity committee. We have a credit committee, and now we have a diversity committee with the same level of importance. There has also been the inclusion of more women in management positions.Valor: And in terms of results?Ms. Medeiros: There have been developments. One example is family agriculture. In the first 100 days, we had a 36% growth compared to 2022, with R$4.4 billion released. This is a reason to celebrate. We had a difficult period with family agriculture credit, in the National Program to Strengthen Family Farming (Pronaf), and the employees bought into the strategy of reconciling...
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