Banrisul History

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Banrisul History Banrisul History 1927 During the 1st Cattle Raisers Conference, held in May, local cattle raisers demand that the state government open a bank to provide funding whenever needed. 1928 One year after the Rio Grande do Sul cattle-raisers’ demand, the then President of Brazil, Washington Luís, sanctions the opening of Banco do Rio Grande do Sul - BRGS (The Rio Grande do Sul Bank). On September 12th, the bank opens with a startup capital of 50,000 contos de réis. Long-term credit is then extended to farmers and the Bank mortgages their property as a guaranty. 1929 The crash of the New York Stock Exchange does not affect the financial performance of the Bank, which gets its capital fully paid by issuing collateral mortgage notes on the international market as well. Nineteen new bank branches are inaugurated, totaling 24 in the State of Rio Grande do Sul. The Activity Report, presented during a Shareholders’ Meeting, shows that more than half of the loans were intended for the "direct funding of jerked beef production." 1930 In the same year when the Bank becomes the trustee of the bankrupted Banco Popular (Popular Bank), the Social Security Fund is set up with an appropriation of 100,000 réis. In addition, 22 new bank branches are inaugurated. 1931 Nine new bank branches are inaugurated and the Bank is authorized to liquidate the assets of Banco Pelotense (Pelotense Bank, from the local government of Pelotas). In 1931, after taking over Banco Pelotense, the Bank began collecting taxes on behalf of the state of Rio Grande do Sul. 1932 In order to prevent the effects of the 1929 financial crisis from hitting the Rio Grande do Sul cattle-raising industry, José Antônio Flores da Cunha, the financial intervener, authorizes the Bank to open up a credit line worth 50,000 contos de réis with guaranty from the Government of the State of Rio Grande do Sul. 1933 Farmers benefit from two federal decrees – The Act of Usury and the Act of Economic Readjustment – both reducing the amount of loans and limiting the number of annual installments. The Bank, as well as other creditors, starts to receive National Treasury Bills. Its capital reserve increases over ten-fold: from 10,000 to 112,000 contos de réis. 1934 The Instituto de Aposentadoria e Pensões dos Bancários (The Bank Employees’ Retirement and Pension Fund Institute) starts to receive deposits worth 100,000 réis twice a year from the Bank. In 1934, Banrisul began expanding, opening branches in various cities around the state, and consolidating its growth by acquiring public financial institutions including Banco Real de Pernambuco (1969), Banco Sul do Brasil (1970), Banco de Desenvolvimento do Estado do Rio Grande do Sul - BADESUL (1992) and DIVERGS - Distribuidora de Títulos e Valores Mobiliários do Estado do Rio Grande do Sul (1992). 1935 In the year of the 100th anniversary of the Revolução Farroupilha (Farroupilha Revolution), BRGS boasts 23 branches, 32 sub-branches, and 51 correspondents (banking service stations). 1936 The amount of deposits increase by 50% compared with the previous year. They jump from RS 95,852:906$000 to RS 142,825:071$340. The new Herval branch is inaugurated. 1937 Rio Grande do Sul’s foreign trade reaches RS 830,2 thousand contos de réis, totaling 752,659 tons of exported products. 1938 The 10th anniversary of the Rio Grande do Sul Bank is celebrated in many different ways: a plot of land is purchased in the Espírito Santo neighborhood, in the south end of Porto Alegre, the capital city, for the construction of the Banrisul Casino. Employees benefit from a group insurance plan and the Employee Medical Assistance Fund is set up. The Bank’s capital reserves reach the amount of R$ 26,2 thousand contos de réis. 1939 190 employees work at the Bank headquarters. This leads the Board of Directors to decide on an expansion. To this end, two buildings are purchased along Sete de Setembro Avenue, in the city center. One of them had been the headquarters of Banco Pelotense. 1940 Another plot of land is purchased, also in the south end of Porto Alegre, the capital city. Located at Mário Totta Street, close to the Guaiba River, the Banrisul Casino is built and later re-named Banricap. 1941 The Bank allocates 300 contos de réis for setting up the National Steel Company. New branches are inaugurated and it becomes the financial intermediary between Federal Government funding and the Rio Grande do Sul economy. 1942 For the first time the funding allocated for trade exceeds that invested in the farming and cattle-raising industry. Two new bank branches are inaugurated: one in the city of Marcelino Ramos and the other in the city of São Luiz Gonzaga. 1943 On November 14th, the Bank Employees’ Vacation Resort is inaugurated in the Tristeza neighborhood in Porto Alegre. 1944 More than Cr$ 1 million is allocated for different production initiatives across the State of Rio Grande do Sul. On December 31st the Bank’s capital reserves reach Cr$ 29.9 million. 1945 Credit worth Cr$ 607 million is extended to the farming and cattle-raising industries, which had been hit by a crisis. 1946 The first group of women bank employees is hired, totaling 888 staff members. Gross transactions add up to Cr$ 581.3 million. 1947 Loans granted to the farming, cattle-raising, and mining industries add up to Cr$ 581.3 million 1948 On the Bank’s 20th anniversary, investments worth Cr$ 1.5 billion are celebrated. 1949 Governments are funded, especially the State. The financial resources are invested in lighting, roads and buildings, education and public health, among other areas. 1950 For the first time credit agreements are signed with the State with the aim of accelerating revenues. Credit of approximately Cr$ 1.5 billion is extended. The first urban branch of the Bank opens in Porto Alegre in the São José neighborhood, north end of the city. 1951 The Fundo de Fomento Agropecuário (Farming and Cattle-Raising Assistance Fund) is set up for small farmers interested in purchasing land, cattle and fertilizers. 1952 The Bank’s capital jumps from Cr$ 50 million to Cr$ 75 million. Cr$ 1 million is allocated for loans to bank employees who plan to enlarge or renovate their homes. Employees get a 25% salary increase. 1953 Celebration of the Bank’s Silver Jubilee and biggest amount of gross investments ever: Cr$ 3.5 billion. The Bank’s first branch in Rio de Janeiro is inaugurated. 1954 New bank branches open in the countryside of the state of Rio Grande do Sul and funding is allocated in order to improve cattle and sheep herds in Rio Grande do Sul. 1955 Deposits reach Cr$ 1.4 billion in spite of the financial difficulties faced by the Rio Grande do Sul economy due to supply and the price control policies. 1956 Law no. 2,910, proposed by the State Government of Rio Grande do Sul, is approved by the House of Representatives, laying down funding and guidelines about small farmers’ agricultural portfolio. 1957 A 100% rise in capital is approved during a Shareholders’ Meeting: from Cr$ 100 million to Cr$ 200 million. This same year, the Fund for Construction of the Bank Headquarters is launched, the Small Farmer Credit Portfolio is set up, and the first bank branch in São Paulo is inaugurated. 1958 On its 30th anniversary, the Bank sets up its Foreign Exchange Portfolio. Exchange is carried out with 130 banks in 30 countries. 1959 Part of the financial resources resulting from the liquidation of Banco Pelotense is allocated for the Agricultural Credit Portfolio. Nine new bank branches are inaugurated, including one in São Paulo. 1960 A 150% rise in capital: from Cr$ 200 million to Cr$ 500 million. Employees benefit from family and school allowances and from the Home Loan Fund. The word State is added to the name of the Bank, which is from now on called Banco do Estado do Rio Grande do Sul S/A (BERGS) [The Rio Grande do Sul State Bank Corp.]. 1961 The Bank’s capital reaches Cr$ 1 billion. The first branch opens in Brasília. Women bank employees gain the right to be promoted. 1962 The Bank employs 2,600 staff members and the first bank branch opens in Florianópolis, State of Santa Catarina. 1963 The Bank’s capital reserves reach Cr$ 932 million, a very significant figure. At the end of the year, the Articles of Incorporation for Fundação Banrisul de Seguridade Social [Banrisul Social Security Foundation] are ratified. 1964 The present building of the Bank headquarters is inaugurated. The Bank’s capital jumps to Cr$ 5 billion. 1965 The Bank becomes the controlling shareholder of Companhia de Armazéns Gerais do Rio Grande do Sul with 19.60% of the shares. It invests Cr$ 192 million by means of the General Credit Portfolio. The Bank’s own financial resources reach Cr$ 7.9 billion. 1966 Nine new branches are inaugurated, including one in Salvador, State of Bahia. 1967 The Foreign Exchange Portfolio comes into operation at 278 bank branches in 50 countries. The Bank becomes the controlling shareholder of Mobilizadora de Capitais S.A. Mocasa. 1968 The Banco Nacional de Habitação – BNH (The National Home Loan Bank) authorizes the Rio Grande do Sul State Bank to operate as a financing agent. NCr$ 704 million is invested in the basic sectors of the economy – an amount 20 times higher than the Bank’s capital reserves. 1969 This year the Bank’s capital reaches NCr$ 30 million and the Banco Real de Pernambuco (Royal Bank of Pernambuco) is taken over.
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