September 1, 2010
by John Rumsey
Talk about Brazilian banks to investors, bankers and the banking industry and the defining theme is credit. The business is growing rapidly, with outstanding credit in Brazil at 1.53 trillion reais in June, up 2.0% in a month and 19.7% in a year, according to data from the Central Bank of Brazil.
Market leader Banco do Brasil (BdB) expects the total market for credit to hit 2.0 trillion reais by December, an increase of 17.7% in just one year. There is plenty of scope for growth. At 45% of GDP, credit in Brazil lags behind other developing nations, Ivan Monteiro, BdBs CFO tells LatinFinance. Chile has a credit-to-GDP ratio of over 60%.
If credit is th
Latin America’s biggest bank, Banco do Brasil, is riding high with new lines of international and capital markets business. However, elections may be a spanner in the works.