Bloomberg News

Brazil Said to See Little Chance of Finding Buyer for Banco BVA

October 19, 2012

Brazil sees slim chances of finding a buyer for Banco BVA SA, the Rio de Janeiro-based lender that the central bank took control of today, a government official said.

Banco BVA, which had insufficient provisions for its credit portfolio, faced serious liquidity problems and had an inviable business model, the official said, requesting not to be named because he was not authorized to speak publicly.

The current owners are unlikely to come up with the necessary capital to put the bank on its feet again, the official said.

The central bank declined to comment beyond what it said in its statement announcing the takeover earlier today. BVA declined to comment, according to a spokesman who asked not to be named in accordance with bank policies.

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