Brazil has a lot of banks and forming a new one is not easy. Not only is forming a new bank is not easy but competing with state banks that often favored by the regulators is as hard. However, according to an article issued by the EM.com.br stated that a new bank was being formed through a joint venture between BMG bank of the Minas Gerais and Sao Paulo located in Banco lta. Though the partnership seemed to be unconventional the combination because the Banco lta is the fifth biggest bank in Brazil and does not need a partner. Banco lta amalgamated with the Unibanco in 2008 and as result, there was one strong private bank that has a sizable market share in the banking sector in Brazil.
Though this partnership is real, with BMG is unique, even though the banking sector in Brazil is very competitive both banks would thrive if they were separate, both banks are optimistic after coming together to form a new bank. After both banks came together they formed a bank called BMG, it has an initial capitalization of $R billion. Banco lta invested $R700 million while BMG Bank invested $R300 to begin the new bank. According to Marcio Alaor the BMG Bank’s Director, there will be a lower cost of running a business through this partnership and there will be greater revenue. The priority of the Brazilian bankers is to lowering the costs of doing business.
Marcio Alaor has years of experience in the banking sector that enable him to manage such transaction. He is widely recognized and respected in the Brazilian banking sector he has served as the Vice President as well as the Director of BMG for several years. Alaor birthplace is in the state of Minas Gerais and was brought up in a small village that produces fireworks. Though there were no much of the opportunities in the villages where he grew up he worked hard to ensure that he had made his own opportunities. It was after he had gotten his degree that he joined the banking business.
Though Alaor is an importantly committed member of the BMG Banking family and talented negotiator he works had to ensure that he spare some of his time for the people from his native village. This is what keeps Alaor grounded. Assisting others in what he does best.
This new partnership that led to lta BMG will go a long way to ensuring that people get the payroll loans that the people require so that they can manage through the recessions. According to Alaor, the new bank will entice new clients to their payroll loans products and Banco lta is of the same opinion. Both banks contend that new bank will reduce costs and attract new clients.