Provisions at Brazil's Caixa enough to buffer capital, CFO says
SAO PAULO Nov 20 (Reuters) - State-controlled Caixa Econômica Federal SA, Brazil's largest mortgage builder, is comfortable with loan-loss provisions at current levels, even as the nation's worst recession in a quarter-century threatens to crimp the outlook for the coming quarters, executives said on Friday.
Brasilia-based Caixa used gains in the value of deferred tax assets to boost so-called excess and generic reserves while setting aside more money to cover loan losses, Chief Financial Officer Márcio Percival said in a phone interview to discuss third-quarter results.
The bank is stepping up sales of bad loan portfolios, cleaning up the balance sheet and lessening any additional capital requirements, Chief Risk Officer Roberto Derzie said in the interview. (Reporting by Guillermo Parra-Bernal and Tatiana Bautzer; Editing by Jeffrey Benkoe)
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