BB follows privates into micro credit links with retailers

Brazilian federal bank Banco do Brasil's (BB) micro credit subsidiary Banco Popular do Brasil (BPB) is following the example of the country's private banks and signing partnerships with retailers. BB launched BPB as a pilot project in February and made it fully operational in July. Since its launch BB has opened 2,700 BPB branches across Brazil. The federal bank said in a statement that BPB had signed a distribution partnership with drugstore chain Rede de Farmácias Santa Mônica, which has 56 stores in the state of Goiás and in the federal district. Last month BPB signed a similar agreement with another drugstore chain Panvel that counts 216 stores in the Southern states of Santa Catarina and Rio Grande do Sul. Several of Brazil's largest private banks have teamed up this year with big retailers in order to finance the purchases of their customers and also to offer additional banking products. BPB's flagship product is a basic bank account for mainly for low or irregular income individuals who would not normally be offered a checking account by other banks. The product has been very popular with workers in the informal sector, as they do not have to show an income statement in order to be eligible to open an account. BB is Brazil's largest bank both in terms of assets and customers.