BRASILIA, March 2 (Reuters) - Brazil’s Senate on Wednesday approved a provisional measure that allows state-run lenders Banco do Brasil and Caixa Economica Federal and its subsidiaries to buy a stake in other companies. The measure allows the lenders to acquire stakes in other companies until Dec. 31, 2018. A previous law had authorized them to make those purchases until mid-2011. The measure now needs to be sanctioned by President Dilma Rousseff. (Reporting by Eduardo Simoes; Writing by Alonso Soto; Editing by Sandra Maler)
Brazil 's Senate has voted to provisionally allow state - run banks Banco do Brasil and Caixa Economica Federal and its subsidiaries to acquire shares in other companies until December 31st , 2018 ; the measure now has to be sanctioned by President Dilma Santos . On another note , Moody 's has warned that Brazil 's decision to allow lending through state - owned banks , such as Banco do Brasil and Caixa Economica Federal , could increase their asset quality risk and increase risk to creditors .