Business

Shares in Brazil’s Nubank rise as central bank rules are seen as less stringent

Nubank, a Brazilian fintech startup, celebrates the company's IPO on the NYSE in New York
A banner for Nubank, the Brazilian fintech startup, hangs on the facade of the New York Stock Exchange (NYSE) to celebrate the company’s IPO in New York, the United States, December 9, 2021. REUTERS/Brendan McDermid

March 14, 2022

(Reuters) – Brazilian fintech Nubank said on Monday that new central bank rules for digital banks will mean lower-than-expected capital requirements next year and in 2024, with the announcement set to boost its shares.

In a securities filing, the Warren Buffet-backed Latin American fintech star said the change has no material impact on its “business model or our ability to grow.”

U.S.-listed shares of Nubank rose nearly 2% to $6.04 in after-hours trading. However, despite Monday’s plunge, shares of Nubank are down nearly 37% so far this year, amid deteriorating investor sentiment in the broader tech market.

On Friday, Brazil’s central bank announced stricter rules for fintechs, which will subject payment institutions to regulation because of their size and complexity, while raising standards for required capital.

The new framework, which will come into effect from January 2023 and be fully implemented by January 2025, will extend the proportionality of the regulatory requirements currently applicable to conglomerates of financial institutions to financial conglomerates managed by payment institutions.

(Reporting by Carolina Pulice and Marcela Ayres; Editing by Tim Ahmann; Editing by Chris Reese)

https://www.oann.com/shares-in-brazils-nubank-rise-as-central-bank-rules-seen-as-less-onerous/?utm_source=rss&utm_medium=rss&utm_campaign=shares-in-brazils-nubank-rise-as-central-bank-rules-seen-as-less-onerous Shares in Brazil’s Nubank rise as central bank rules are seen as less stringent

DUSTIN JONES

USTimeToday is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@ustimetoday.com. The content will be deleted within 24 hours.

Related Articles

Back to top button