Collective warranty of credit through cooperatives of urban credit: an experience in south Brazil

Abstract

The credit cooperatives, since a long time ago, have a prominent role in the credit concession to the rural producers in Southern Brazilian States. Recently, the entrepreneur of urban small and medium size enterprises is now also served by the cooperative credit system. On the other hand, the LPS (Local Productive Systems), especially in Europe, seek to encourage small and medium businesses through integration mechanisms, mainly collective, or mutual, credit warranty tools. So that small businesses have easy access to credit. The small businesses can then have access facilitated, in general, by banks credit. This article approaches the current situation, the credit warranty banks mechanisms implementation possibilities in Brazil and a case study concerning the use of credit unions as credit warrantors on Regional Bank for the Development of Southern Brazilian States (BRDE in Portuguese language) operations in the State of Santa Catarina.