Brazil Central Bank Chief Decries Savings Model as 'Reverse Robin Hood' and Urges Shift to Market-Funded Mortgages

Overview

• At a Bradesco Asset event, Gabriel Galípolo labeled the caderneta de poupança a “reverse Robin Hood” that sub‑remunerates less‑informed savers to subsidize cheaper mortgages.
• He described a managed transition toward market‑based funding, using poupança resources to cushion the shift and better match deposit and loan maturities.
• The Central Bank aims to reduce compulsory deposits under the new model, addressing the asset‑liability duration mismatch that weakens rate pass‑through.
• Galípolo said the drop in savings balances is structural, driven by wider access to information and alternative financial products.
• No regulatory changes were announced; under current rules, 65% of poupança funds go to housing credit, 15% are free, and 20% sit as compulsory reserves.