The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Brazil banks ready for latest stress test

Previous crises led to consolidated, profitable sector that should be able to weather coming storm.

oncoming storm_780

The financial fallout from the coronavirus in emerging markets is hitting Brazil hard, but the solidity – and profitability – of its banking sector is helping alleviate the pain.

A recent report from Goldman Sachs highlighted the extent of Brazil’s financial exposure to Covid-19: Brazil has seen its equity markets sell off more than any other large country and the real has also been one of the worst-performing currencies.

However, the country’s banking sector looks set to withstand this latest crisis.



Large banks in Brazil may have several flaws... But there is one thing nobody can deny – they are rock-solid - Eduardo Rosman, BTG Pactual


A report from BTG Pactual highlights the positive aspects of having a consolidated banking system – it increases ease of coordination and regulation during crises and tends towards strong profitability of those players during good times and bad.

“Over the years, banks faced hyperinflation, price freezes and the Collor Plan, which hijacked savings accounts,” argues Eduardo Rosman, financial institutions analyst at BTG Pactual. “They survived the Lehman bust in 2008 and the largest corporate crisis in Brazil’s history in 2015/16 without many bruises.






You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree