Policies in place to weather the storms
Brazil to gain a new global profile?
Banks trade on their strengths
Profitability holds up – so far
Consolidation to accelerate?
Real economy takes a hit
Petrobras: hope amid the storm
Brazilian banks have enjoyed a fantastic backdrop for growth for the majority of the decade. On the back of historically strong commodity prices and increasing domestic consumption – as well as a stable macroeconomic framework – Brazil’s economy has enjoyed one of its most consistent ever periods of growth since 2002.
Now banks face a number of significant challenges. Economic growth is expected to decline in 2009 with consequences for the pace of credit growth to both consumers and corporates. Similarly, a prolonged slide in growth could increase loan losses and put pressure on bank capital levels. Finally – and most immediately – liquidity and access to funding have become a problem with potentially serious...
