Thriving Through Efficiency

Thriving Through Efficiency

Brazil

The Brazilian banking sector has performed remarkably well in recent years. The question is whether this is due to efficiency or mere opportunism. Among the principal sectors of the Brazilian economy during 2002, only five posted returns on equity in excess of the 18% yield available on bank CDs. However, these generally low returns in the industrial sector of the economy probably are less a sympton of inefficiency and more a consequence of a market in which credit is scarce, costly and of very short maturity. In fact, the operating profits of most Brazilian non-financial companies are in line with similar companies operating in other countries. However, the problem lies with the heavy fin

Already have an account?

Free trial

Take a free two-week trial now for the latest news, data and market analysis.

Free Trial