- •Contact us
- •About us
- •Advertise with the FT
- •Terms & Conditions
© The Financial Times Ltd 2013 FT and 'Financial Times' are trademarks of The Financial Times Ltd.
Not too much further, say critics, who point to a rise in average household expenditure on servicing debt. And indeed, private sector credit has doubled over the past decade.
But Data Popular, a research firm, has come up with a startling finding that could give hope that Brazil’s credit binge can continue – without degenerating into a bubble. Apparently, 55m Brazilians – or 40 per cent of the country’s population – don’t have a bank account. Continue reading »
But while Santander has hitched its fortunes on Brazil — now its biggest market, accounting for 26 per cent of group profits last year — BBVA has focused on building up its operations in Mexico. Just last month it announced plans to funnel $3.5bn into its Mexico business over the next three years, and the country last year accounted for more than one-third of its global profits. Continue reading »
Another foreign bank is looking to exit at least part of its business in Latin America – this time Citi with its Brazil credit card division.
Brazilian newspaper Valor Econômico reports that the local branch of Santander and domestic institution Bradesco are interested in the division, called Credicard. The group is said to be looking to sell the card unit and its consumer finance division, Credicard Financiamentos, for R$1bn and R$1.5bn in time to clock the sale in its first quarter results. Continue reading »
On the homepage of Banco do Brasil, Brazil’s largest bank, you can take out a loan to buy a car, renovate your house or buy electronics and home appliances. Indeed, never before in Brazil has it been so easy to borrow money from a bank. Record-low interest rates are expected to make things even more attractive for borrowers.
Tipping things even further in favour of borrowers is a push by President Dilma Rousseff to encourage banks, all of them but especially those controlled by the government like Banco do Brasil, to reduce borrowing costs to further fuel lending and get the economy moving. Continue reading »
The BNDES, Brazil’s government-owned development bank, lent more than it set out to last year, as loan requests and loans approved reached “levels without precedent in the history of Brazil”, as the bank itself put it.
Its triumphal tone will grate with those who believe the BNDES should be shrinking, not expanding. This applies even to Luciano Coutinho, the bank’s president, who told the FT two years ago the BNDES should be “crowding in” the private sector – rather than, as it is often accused of doing, crowding it out. Continue reading »
According to Brazil’s central bank, it was just a technical adjustment. However, after a series of small bank collapses in the country recently it’s easy to understand why not everyone was convinced. Continue reading »
Acquiring a small bank in Brazil may seem like a rather brave thing to do right now. Over the past two years, seven small or mid-sized lenders have either been closed down or changed ownership as a result of financial difficulties. Several of those cases have allegedly involved fraud.
However, if you’re a big foreign bank looking to get into Brazil and you’re savvy enough to know which bank to choose, an acquisition in the sector could be a very smart move. Not only are shareholders now willing to sell for a low price, but it can also be one of the simplest ways to get a banking licence in the country.
For this reason, ABN Amro’s acquisition of Rio de Janeiro-based Banco CR2 last week seems to make sense. Continue reading »
The measure was apparently a reaction to the liquidation of small and mid-sized banks Banco Cruzeiro do Sul and another bank on Friday. Continue reading »
After three months of looking for a buyer for the mid-sized bankrupt lender, Banco Cruzeiro do Sul, the central bank gave up on Friday and announced it would liquidate the bank. It also shut down Banco Prosper, which Cruzeiro do Sul had been in the process of buying. Continue reading »
The country’s largest mortgage lender on Thursday said it planned to increase its loan book by a whopping 42 per cent this year as it looks to take advantage of its private sector rivals’ retrenchment. Continue reading »
When payroll lending first came to Brazil in 1990, no one paid that much attention. The loans, which are deducted directly from borrowers’ monthly salaries, were only available to public servants at the time.
Even after a new law in 2003 opened up payroll lending to private-sector employees, only the smallest banks were interested in offering the product.
How times have changed… Continue reading »
|About this blog||Headlines email||Blog guide|