Brazilian banks expand governance as regulators tighten up

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Stallholders in the Municipal Market, São Paulo

In November, Brazil’s central bank detected what appeared to be large-scale fraud at Banco Panamericano and was compelled to inject R$2.5 billion ($1.45 billion) to rescue the mid-sized bank, Brazil’s 22nd in size at the time.

Panamericano, which focused on consumer finance and car loans to lower-income clients, had allegedly been on-selling loan portfolios to larger banks while retaining the portfolios on its books.

The case, however, was an exception in what is seen as a solid and safe market

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