Brazil’s cenbank backs changes in credit card rules

* Brazil’s Meirelles supports changes to credit card rules

* Seek to increase competition, transparency

RIO DE JANEIRO, June 17 (BestGrowthStock) – Brazil’s central bank
chief Henrique Meirelles said on Thursday he supported changes
in rules regulating Brazil’s credit card market that would
boost competition and improving transparency.

Brazil’s Justice Ministry said in April the government
would send a bill to Congress proposing that the national
monetary council regulate the credit card market. That could
include giving the council the power to regulate credit card
fees.

The council is composed of the ministers of finance,
planning and the president of the central bank and oversees the
national financial system.

About 90 percent of the country’s market is controlled by
Cielo (CIEL3.SA: ) and Redecard SA (RDCD3.SA: ), drawing complaints
of high costs and few choices for merchants and consumers.

“It is necessary to have an atmosphere of more competition
that allows the entry of new participants,” Meirelles said in a
taped message shown at an event in Rio de Janeiro.

“It is also necessary to have more transparency in price
formation to increase economic efficiency and reduce prices for
consumers.”

Last year, Brazilian antitrust authorities and the central
bank proposed a series of measures to address the concerns.

Stock Market Today

(Reporting by Rodrigo Viga Gaier; writing by Ana Nicolaci da
Costa; editing by Jeffrey Benkoe)

Brazil’s cenbank backs changes in credit card rules