Business

State-owned bank Caixa gunning for superiority in agricultural credit segment

Banco do Brasil is the clear leader in the rural credit sector, but President Bolsonaro is backing Caixa's push for dominance

agricultural credit brazil
Photo: Alf Ribeiro/Shutterstock

Brazil’s state-owned bank Caixa Econômica Federal has long garnered a reputation for being a social-facing institution. It handles payments for the country’s renowned wealth transfer program Bolsa Família, orchestrates popular housing programs, and manages the accounts of Brazil’s unemployment pecuniary fund FGTS. But Latin America’s largest government-owned financial institution is seeking to expand its horizons and become the bank of choice for Brazilian agricultural producers.

Caixa has offered rural credit since 2013, during which time it has lent BRL 44 billion (USD 8.66 billion) to more than 52,000 agricultural producers. But the bank’s government-appointed chairman, Pedro Guimarães, wants to increase...

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