Stock Groups

Shares in Brazil’s Nubank rise as central bank rules seen as less onerous -Breaking

[ad_1]

© Reuters. To celebrate Nubank’s IPO, a banner representing the Brazilian FinTech startup hangs from the New York Stock Exchange (NYSE). REUTERS/Brendan McDermid

(Reuters) – Brazilian fintech Nubank announced Monday that the new rules of the central bank for digital banks will result in lower capital requirements next year than initially expected and 2024. The announcement lifted its shares.

According to a securities filing by the Warren Buffet-backed Latin America fintech star, the change has not had any significant effect on the company’s “business model and our ability grow.”

Nubank U.S.-listed shares rose nearly 2% to $6.04 at the aftermarket Nubank’s U.S.-listed shares rose nearly 2% Monday, to $6.04 after market. This is consistent with the decline in investor sentiment in broader tech markets.

Brazil’s central bank has announced stricter regulations for fintechs on Friday. They will apply rules based upon the size and complexity of payment institutions, as well as raising capital requirements.

New framework that will go into effect January 2023, with final implementation January 2025.

Disclaimer: Fusion MediaThis website does not provide accurate and current data. CFDs are stocks, indexes or futures. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. As such, the prices might not reflect market values and could be incorrect. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion MediaFusion Media and anyone associated with it will not assume any responsibility for losses or damages arising from the use of this information, including buy/sell signal data. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.

[ad_2]