2nd Programmatic Financial Sector Adjustment Loan

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The objective of the Second Programmatic Financial Sector Adjustment Loan Project is to lend continued support to the comprehensive financial sector reform program pursued by the authorities and supported by the World Bank through a first programmatic loan in 2001, and its recently expanded sectoral reform agenda. through its support for a strengthened financial system, the loan will help anchor poverty reduction in Brazil with sustainable, sound, and crisis-dampening economic growth, as well as directly aiding poverty alleviation through enhanced access to financial services. This loan supports sustained progress in all reform areas covered in the first programmatic operation and gives particular recognition to accelerated implementation of major and difficult financial sector reforms, beyond the scope of the first programmatic operation (report no. P7448). Areas covered include: progress concerning program actions to enhance access to and raise efficiency in financial intermediation, to promote banking system soundness and prevent financial crises, to improve governance, and reduce systemic payments risks, as well as major restructuring of federal banks, and privatization of state-owned public banks. The loan also covers the passage/submission of major legal reforms pertaining to the financial sector.