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Report: Brazil central bank will not have veto powers over Caixa VP appointments

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Report: Brazil central bank will not have veto powers over Caixa VP appointments

Banco Central do Brasil will not have veto powers over appointments of vice presidents under Caixa Econômica Federal's new corporate governance rules despite previous statements, according to a report by Valor Econômico.

On Jan. 19, Caixa said it had approved the new rules, which included that the central bank would have to approve the appointments of vice presidents of the state-run bank.

In practice, however, the regulator will only be communicated about choices in the hiring process but not a right to veto appointments, according to the publication.

Caixa reportedly told Valor Econômico that the central bank will be informed on a mandatory basis of the appointments and that the regulator will continue to act as an oversight body for hiring.

Among the other corporate rules Caixa approved are the establishment of a general meeting with powers to elect and dismiss directors.

Before the rules were put in place, Brazil's president appointed the bank's executives directly.