On Top Once Again
After seeing many of the international banks quit Brazil, locally owned banks are firmly back in command of South America's biggest financial services market.
Even if it comes late,
revenge is sweet. Eight years after international banks
stampeded into Brazil paying top dollar for a collection of
second- and third-rate banks, foreigners are calling it
quits.When they arrived, the banks, mostly European with a
sprinkling of Americans, promised to shake up the profitable
but inefficient Brazilian banking market. However, many are
giving up owning Brazilian banks, disgusted at the huge costs,
the tremendous volatility and scant progress they have
Brazil is one of the few countries in Latin America where
local banks have actually increased their already dominant
share of the market. Banks like Banco Bilbao Vizcaya Argentaria
of Spain, HVB of Germany, JP Morgan and Deutsche Bank have
recently quit Brazil or slimmed down their business in the
country. Italian-owned Banco Sudameris has tried but failed to
sell its Brazilian subsidiary. In every case, the buyer has
been a local competitor,...
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