The Credit Financial Companies (21/08/2002)

Profession:Macedo Vitorino e Associados

Decree-Law 186/2002, of 21 August 2002, creates the credit financial companies, a new type of financial companies.

The credit financial companies (Instituições Financeiras de Crédito - "IFICs") are intended to integrate the financial activities of a group of companies in one single entity, which was not possible to date. IFICs are not banks, although they may execute all banking transactions with the exception of receiving deposits.

IFICs may be an efficient instrument to increase competition in the financial markets as they shall have the capacity to execute the same financial transactions as leasing companies, factoring companies and finance companies for credit acquisition.

IFICs shall also be subject to the rules applicable to financial companies contained in the Banking Law approved by Decree-Law 298/92, of 31...

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