Caixa Econômica Federal
Encyclopedia
Caixa Econômica Federal (ˈkajʃɐ ekoˈnõmikɐ fedeˈɾaw, Federal Savings Bank), also referred to as Caixa or CEF, is a Brazil
ian bank
. It is the largest government-owned financial institution in Latin America
. It is the largest bank in Brazil and in Latin America by assets.
on January 12, 1861 as Caixa Econômica e Monte de Socorro in Rio de Janeiro
as a financial institution destined to collect national savings, mostly from the poor. Over the years, several similar institutions were created until most of them were merged into present-day "Caixa" in 1967.
The 1970s were particularly lucrative for the bank, mostly due to its near-monopoly on savings for the poor and lower-middle classes, the management of Brazilian state (federal) lotteries and being the only lawful pawn broker in Brazil. In the 1990s, however, the scenario changed and the bank underwent a serious downsizing, when thousands of employees lost their jobs.
Part of the problem was caused by the modernization of the Brazilian banking system in the 1980s, with many other banks introducing savings accounts to their portfolios, Brazilian states being granted rights to explore lotteries (alongside the federal government), a series of corruption scandals regarding lottery fraud, and the opening of the national market for foreign banks. The control of inflation
also hampered Caixa's financial performance by making savings accounts less attractive.
Nowadays, Caixa is the second biggest Brazilian bank and is present in thousands of Brazilian towns (ranked the third financial institution in Brazil in number of branches). Caixa has more than 32 million accounts, with liabilities worth more than R$
148 billion in savings or investment. Together with government pension funds and other governmental resources, Caixa controls more than R$ 386 billion (roughly about US$ 200bn). Caixa is seen as a tool for public investment and expansion of access to financial services to the Brazilian public.
Caixa is still the manager of most Brazilian lotteries, especially the most popular ones, such as Mega-Sena
, Quina and Loteca (former Loteria Esportiva). The profits of Brazilian state (federal) lotteries are reverted to amateur sport promotion and elementary education.
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
ian bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
. It is the largest government-owned financial institution in Latin America
Latin America
Latin America is a region of the Americas where Romance languages – particularly Spanish and Portuguese, and variably French – are primarily spoken. Latin America has an area of approximately 21,069,500 km² , almost 3.9% of the Earth's surface or 14.1% of its land surface area...
. It is the largest bank in Brazil and in Latin America by assets.
Financial and Institutional Information
The bank was founded by Emperor D. Pedro IIPedro II of Brazil
Dom Pedro II , nicknamed "the Magnanimous", was the second and last ruler of the Empire of Brazil, reigning for over 58 years. Born in Rio de Janeiro, he was the seventh child of Emperor Dom Pedro I of Brazil and Empress Dona Maria Leopoldina and thus a member of the Brazilian branch of...
on January 12, 1861 as Caixa Econômica e Monte de Socorro in Rio de Janeiro
Rio de Janeiro
Rio de Janeiro , commonly referred to simply as Rio, is the capital city of the State of Rio de Janeiro, the second largest city of Brazil, and the third largest metropolitan area and agglomeration in South America, boasting approximately 6.3 million people within the city proper, making it the 6th...
as a financial institution destined to collect national savings, mostly from the poor. Over the years, several similar institutions were created until most of them were merged into present-day "Caixa" in 1967.
The 1970s were particularly lucrative for the bank, mostly due to its near-monopoly on savings for the poor and lower-middle classes, the management of Brazilian state (federal) lotteries and being the only lawful pawn broker in Brazil. In the 1990s, however, the scenario changed and the bank underwent a serious downsizing, when thousands of employees lost their jobs.
Part of the problem was caused by the modernization of the Brazilian banking system in the 1980s, with many other banks introducing savings accounts to their portfolios, Brazilian states being granted rights to explore lotteries (alongside the federal government), a series of corruption scandals regarding lottery fraud, and the opening of the national market for foreign banks. The control of inflation
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
also hampered Caixa's financial performance by making savings accounts less attractive.
Nowadays, Caixa is the second biggest Brazilian bank and is present in thousands of Brazilian towns (ranked the third financial institution in Brazil in number of branches). Caixa has more than 32 million accounts, with liabilities worth more than R$
Brazilian real
The real is the present-day currency of Brazil. Its sign is R$ and its ISO code is BRL. It is subdivided into 100 centavos ....
148 billion in savings or investment. Together with government pension funds and other governmental resources, Caixa controls more than R$ 386 billion (roughly about US$ 200bn). Caixa is seen as a tool for public investment and expansion of access to financial services to the Brazilian public.
Caixa is still the manager of most Brazilian lotteries, especially the most popular ones, such as Mega-Sena
Mega-Sena
The Mega-Sena is the largest lottery in Brazil, held by the Caixa Econômica Federal bank.-Drawings:Drawings happen twice a week, on Wednesdays and Saturdays. The drawings consist of picking globes from 2 spinning spherical cages. They are picked in pairs, in order to form a 2 digit decimal number...
, Quina and Loteca (former Loteria Esportiva). The profits of Brazilian state (federal) lotteries are reverted to amateur sport promotion and elementary education.