Financial Results of Large Brazilian Banks Show Lower Profitability Levels in 2012, Informs Euromonitor International
21 Dec 2012 • by Natalie Aster
The Central Bank was the frontrunner in an aggressive cycle of the Brazilian benchmark interest rate SELIC (Sistema Especial de Liquidacao e Custodia). Lower interest rates impact banks’ financial results and are accompanied by lower bank spreads. Consumers benefit from the new setting and the economy is stimulated through increased consumption.
The new report “Consumer Lending in Brazil” by Euromonitor International state that Brazilian economic growth was sustained by consumer credit. The millions of people who joined the middle class since 2002 stimulated consumption through consumer credit. The government’s equation was based on the simple motto: more people, more credit. Financial institutions led by public banks followed the government’s maxim and supplied the economy with expanding consumer credit lines.
Consumer Lending in Brazil
Published: December, 2012
Price: US$ 1.900,00
Large banks’ financial results in 2012 show lower profitability levels. Large banking conglomerates such as Bradesco and Itau-Unibanco experience a reduction after decades of significant growth and high profits. The banking industry in Brazil grew, on average, 15% annually since 1992. Itau-Unibanco, Bradesco and Banco do Brasil all experienced record profit levels in recent years.
More information can be found in the report “Consumer Lending in Brazil” by Euromonitor International.
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