German lender Commerzbank has secured the go-ahead from the Brazilian Central Bank (BACEN) to establish a subsidiary in São Paulo, Brazil.
The new subsidiary will be targeted at small and medium-sized enterprises as well as major and capital market companies.
It will provide various corporate and investment banking services in Brazil, cater to European companies doing business in Brazil, and support international firms planning to do business in Europe.
The unit will be led by Harald Lipkau as general manager, who most recently also managed financial institutions in Asia within Commerzbank.
The Brazilian subsidiary is scheduled to become operational by the first quarter of next year.
Divisional board member international of the corporate banking segment (Mittelstandsbank) Bernd Laber said: "Even though the growth momentum in Brazil has slowed recently, the country still remains the seventh largest economy in the world and is by far the most important economy in Latin America and thus a major economic partner for Germany and Europe.
"Even in times of volatile markets, it is important for our Mittelstandsbank, the market leader in Germany for SMEs, to have a local presence to support our customers outside Germany."