João Albino Winkelmann, the head of Bradesco Private Bank, frames the challenge presented to Brazil’s private banking market by the demise of high interest rates. “What we did before wasn’t consultative private banking,” he says. “It was so easy; we would just leave the money in a CD [certificate of deposit] – a liquid asset with no risk and which paid 12.5%. Was that a consulting service? Suddenly you have a 525 basis point interest rate cut and now it’s a completely different game…”
Since the middle of 2011, the Brazilian central bank has cut the country’s base rate, the Selic, from 12.5%
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