BANCO BMG MERGES WITH BANCO ITAU

 

For those of you who have been spreading crazy rumors about Banco BMG being acquired by another bank, please stop, Marcio Alaour just confirmed those are nothing but rumours.In an interview with Estado de Minas, he said discussions with Bradesco and BTG banks were not fruitful, and they were going to partner with Banco Itau to create ITAU BMG bank.Mr Marcio was optimistic that the new arrangement would benefit all.

 

The bank will contribute $ 300 million, and Itau would provide $ 700 million to the $ 1 billion capitals for the new bank. It will be leveraged up to 11 times in line with current Brazilian central bank regulations. Both banks are expected to contribute their strengths to the partnership. Banco BMG has a lot of experience on payroll loans and consigned credit. It has for a long time been called the miners bank due to its history of paying and lending money to miners.

 

Given the current crisis in Brazil, Banks are seeking to leverage their strengths by creating partnerships that work. Some of the strengths of Banco BMG includes the ability to floats in the international market and raise capital.Itau will also help avoid international competition among the banks.

 

The new deal will see both banks continue their independent operations but give some of their customers. Banco BMG is expected to provide 5 million customers while ITAU is expected to give 3 million customers.Itau will also provide needed experience in the market seeing as it is the 5th biggest bank in Brazil.

 

Marcio is the vice president of the bank. He is a man who rose from a shoe shiner to became the vice of BMG.Marcio is from Santé Antonio in Minas state in the rural countryside of Brazil. He holds a degree in accounting and has been given many prizes for his work. Santé Antonio recently named a food court after him and a plate of the town square engraved his name.

 

Mr Marcio works in BMG with prominent banker Ricardo Guimares.They have together grown the bank from a new bank to be one of the heavy hitters in Brazil. It today has 5 million customers being served by 50000 agents in 3000 branches. It also has hired a very talented team that works very hard.

 

It remains to be seen what direction this new partnership will take. Only time will tell. For more: EM.com.br

 

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