The Banking System In Brazil - A Brief Description

I. INTRODUCTION

The present Brazilian banking structure was designed by Law No. 4595, of December 31, 1994 (the "Banking Reform Law"), which entirely formed the domestic financial system according to the specialization of the financial institutions, and consists of the National Monetary Council ("CMN"), the Central Bank of Brazil ("Bacen"), Banco do Brasil S.A. ("BB"), the National Economic and Social Development Bank ("BNDES"), the Federal Savings and Loan Association ("CEF") and all other public and private financial institutions authorized by Bacen.

The CMN is the senior agency of the Brazilian Financial System and is responsible for monetary policies directed toward economic and social development. Bacen is an autonomous governmental entity responsible for the execution of monetary policies, exchange controls, regulation of banks and financial institutions and control of foreign investments. BB is a mixed-capital corporation and, as a commercial bank controlled by the