Downturn plays into regional hands (Brazil’s regional banks)

Citation

Rumsey, J. (2010), "Downturn plays into regional hands (Brazil’s regional banks)", Strategic Direction, Vol. 26 No. 6. https://doi.org/10.1108/sd.2010.05626fad.007

Downturn plays into regional hands (Brazil’s regional banks)

Article Type: Abstracts From: Strategic Direction, Volume 26, Issue 6

Rumsey J.The Banker (UK), November 2009, Vol. 159 No. 1005, Start page: 64, No. of pages: 3

Discusses the paradox whereby the current global economic and financial crisis (“credit crunch”) and recession has acted as a reprieve for many of Brazil’s regional banks, and where state-owned and regional development banks, which tend to have large deposit bases or state funding and are independent of capital markets, have succeeded in increasing market share at the expense of national private banks. Warns that the future situation looks uncertain, as Brazil has a long history of universal banking and this makes it difficult for regional banks to carve out specialist niches, while also making regional banks direct competitors to national banks. Reports statistics for Brazil’s largest regional banks by total assets and discusses the current state of state-owned banks, smaller state banks, and private banks. Concludes that, while the development banks are in a comfortable position, the fate of other regional banks in the country hangs in the balance, and state-owned banks will need to prove their worth in the next two years.Article type: ViewpointISSN: 0005-5395Reference: 39AC541

Keywords: Banks, Brazil, Economic depression, Finance, Recession