Brazil's Requirements Cut Not Linked To Small Banks

A decision by Brazil's central bank to reduce reserve requirements for commercial banks was not motivated by the liquidation of troubled consumer lenders Banco Cruzeiro do Sul and Banco Prosper, a senior government official said on Thursday, Reuters reported. The bank lowered some requirements on deposits on Sept. 14, the same day it folded the banks for accounting fraud and losses. "The reserve requirements decision has nothing to do with the troubles facing some small banks. It was a decision more to address the decision to ease monetary conditions after a very weak growth during the first half of the year," said Pablo Fonseca dos Santos, the Finance Ministry's undersecretary for economic policy. Read more.