Page 24 - Sicredi Ingles Flipbook

The former headquarters of the first Brazilian credit union, in Nova Petrópolis/RS.
began to spread throughout the south of the country, in rural colonies formed by German immigrants. Over three decades, 38 credit unions were established, inspired by the ideas of Father Amstad. Slowly but surely, the initiative won over more people and new “rural savings” were create in other states, especially in small municipalities where financial institutions failed to offer services. At the end of the 1950s, there were over 500 credit unions throughout the country.
However, things changed in 1964 with the onset of a long period of restrictions due to a policy to centralize and concentrate the financial system, with the creation of the Central Bank of Brazil and the National Monetary Council, which implemented a series of hurdles for credit unions, complicating their inclusion in the Brazilian system. The proclamation of Law 4,595, of 1964 – Bank Reform Law– was a milestone during this period, known as the “age of prohibition”. Among other restrictions, the law prevented credit unions from cashing checks, from forming centrals or affiliates, while also setting interest rate limits for deposits and loans lower than those permitted to other banking institutions.
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