Brazil National Cooperative Tender

Consistent with the last years economic recovery the credit portfolio of the National Cooperative Credit System SNCC increased by an accelerating growth rate of 23 in 2018 in comparison to 11.6 in 2017.Although the balance of the cooperative systems credit operations represented only 7.9 of total retail credit its performance contributed significantly to the resumption of credit in the National Financial System SFN. In fact the SNCC kept increasing its market share in SFN in 2018 since its total assets have grown 18 outperforming the overall SFN which has experienced 7 growth excluding the SNCCs portfolio. The credit union membership has grown to include 9.9 million rising by 9 with a growth of 18 for companies and 8 for individualsthat contributed to the growth of 18 in the fundraising from the associates deposits in whole SNCC.The number of single credit cooperatives operating in Brazil fell by 4 in 2018 favoring the consolidation of the SNCC. In addition the credit cooperatives deepened their capillarity in terms of new service points across the country. They are operating in 92 of the municipalities of the South region and 58 of the Southeast region in December 2018. In 2018 the credit from cooperatives became a sound option for small and medium-sized enterprises commensurate with their regionalized performance and closeness to small business owners. The credit unions performance was more significant in rural credit and non-payroll personal loans.The share of credit operations in the assets of single cooperatives increased and the quality of the whole SNCCs credit assets is still higher than the rest of the SFN even though the difference has been diminishing over time. In aggregate terms the single cooperatives have complied with the regulatory capital requirement PR which fell from 30 to 27 mainly due to changes in regulations and the composition of assets.