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Bradesco signs central bank agreement outlining requirements for HSBC deal

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Bradesco signs central bank agreement outlining requirements for HSBC deal

Banco BradescoSA has signed an agreement with BancoCentral do Brasil committing to comply with certain related to its recent of fromHSBC Holdings Plc.

Among the requirements, Bradesco will have to maintain all HSBCbranches in municipalities where no other banks have a presence for a period ofthree years, which involves 173 branches — 169 Bradesco branches and four HSBC branches.

Bradesco will also have to maintain HSBC's present service feesfor one year. For the following four years, the rates can be adjusted by the samerate used to adjust Bradesco's fees, the central bank said in a filing that wasreleased July 12.

In addition, the amount of consumer claims will be monitoredby the central bank to ensure it does not exceed an acceptable amount or fines willbe administered.

In June, Brazilian antitrust regulator Cade approved the Bradesco-HSBCdeal with some restrictionsthat prohibit Bradesco from carrying out any further acquisitions for at least 30months.

As of July 12, US$1 wasequivalent to 3.28 Brazilian reais.