São Paulo, March 22, 2004 (Agência Brasil) - Reducing the bank spread is among the priorities of the Central Bank (BC), guarantees BC president, Henrique Meirelles. Attending the inauguration of the new presidents of the Febraban (Federation of Brazilian Banks) and the CNF (National Confederation of Financial Institutions), Friday (19), in São Paulo, Meirelles underscored the solidity and health of the financial system as "factors fundamental to the resumption of the level of activity in the country."

"The lack of solidity of the banking system can induce a credit bottleneck that aggravates the shrinkage of the economy and delays the process of recovery," affirmed the president of the BC.

Meirelles also asserted that such solidity in the Brazilian banking system is the consequence of a concerted effort by the public and private sectors.

Translator: David Silberstein