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Brazil’s Financial System: Resilience to Shocks, no Currency Substitution, but Struggling to Promote Growth

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Listed:
  • Ilan Goldfajn
  • Katherine Hennings
  • Hélio Mori

Abstract

Brazil has evolved a financial system with a smaller presence of public banks and larger participation of foreign banks, less directed credit, and well capitalized banks. Over the years it has been resilient to shocks and was able to preserve the real value of savings in the system, thus avoiding both dollarization and desintermediation. However, reducing the cost and increasing the volume of credit in the economy remains a challenge. Notwithstanding these hurdles, recent advances in the regulation of the financial system should pave the way for better intermediation and higher growth.

Suggested Citation

  • Ilan Goldfajn & Katherine Hennings & Hélio Mori, 2003. "Brazil’s Financial System: Resilience to Shocks, no Currency Substitution, but Struggling to Promote Growth," Working Papers Series 75, Central Bank of Brazil, Research Department.
    • Handle: RePEc:bcb:wpaper:75
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    References listed on IDEAS

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    1. Gerard Caprio & Patrick Honohan, 2008. "Banking Crises," Center for Development Economics 2008-09, Department of Economics, Williams College.
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    7. Tarsila Segalla Afanasieff & Priscilla Maria Villa Lhacer & Márcio I. Nakane, 2002. "The Determinants of Bank Interest Spread in Brazil," Money Affairs, CEMLA, vol. 0(2), pages 183-207, July-Dece.
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    Citations

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    Cited by:

    1. Vicente Cuñat, 2009. "Finance for Development: Latin America in a Comparative Perspective. By BARBARA STALLINGS with ROGERIO STUDART," Economica, London School of Economics and Political Science, vol. 76(301), pages 216-217, February.
    2. Armando Castelar Pinheiro & Regis Bonelli, 2015. "Financial Development, Growth and Equity in Brazil," Discussion Papers 0159, Instituto de Pesquisa Econômica Aplicada - IPEA.
    3. Patrice T. Robitaille, 2011. "Liquidity and reserve requirements in Brazil," International Finance Discussion Papers 1021, Board of Governors of the Federal Reserve System (U.S.).
    4. A D Adom, 2016. "Resilience of developing countries to shocks: Case study of WAEMU countries with SUR and VAR Approaches," Economic Issues Journal Articles, Economic Issues, vol. 21(2), pages 105-138, September.
    5. Clement Moyo & Hlalefang Khobai & Nwabisa Kolisi & Zizipho Mbeki, 2018. "Financial develpoment and economic growth in Brazil: A non-linear ARDL approach," Working Papers 1811, Department of Economics, Nelson Mandela University, revised Mar 2018.
    6. Nelson Souza-Sobrinho, 2010. "Macroeconomics of bank interest spreads: evidence from Brazil," Annals of Finance, Springer, vol. 6(1), pages 1-32, January.
    7. Armando Castelar & Regis Bonelli o, 2005. "Financial Development, Growth and Equity in Brazil," Discussion Papers 1118, Instituto de Pesquisa Econômica Aplicada - IPEA.
    8. Raquel de F. Oliveira & Rafael F. Schiozer & Lucas A. B. de C. Barros, 2011. "Too Big to Fail Perception by Depositors: an empirical investigation," Working Papers Series 233, Central Bank of Brazil, Research Department.
    9. Gabriel Garber & Atif Mian & Jacopo Ponticelli & Amir Sufi, 2018. "Household Debt and Recession in Brazil," NBER Working Papers 25170, National Bureau of Economic Research, Inc.
    10. Castro, Fernanda & Kalatzis, Aquiles E.G. & Martins-Filho, Carlos, 2015. "Financing in an emerging economy: Does financial development or financial structure matter?," Emerging Markets Review, Elsevier, vol. 23(C), pages 96-123.

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