Post-Keynesian perspectives on Brazilian banking strategies: a cluster analysis (2000–2022)

This study analyzes the balance sheets of Brazilian banks from 2000 to 2022 to identify clusters with similar business models. Using machine learning techniques, six distinct groups were identified based on eight variables expressed as a percentage of total assets: interbank liquidity applications, securities and financial derivatives (TVM), loan operations, other credits; total deposits, commitments through repurchase agreements, acceptance and issuance of securities, and loan and transfer obligations. The results show that Brazilian banks can be classified into groups with unique characteristics in their balance sheet composition over time, reflecting strategic adaptations to macroeconomic, regulatory, and managerial changes. Cluster 6 is termed ”traditional banks,” as they allocate resources primarily to loan operations, financed mainly by deposits. In contrast, Cluster 5 stands out for significant allocations in loans and TVM, focusing on liability-side securities issuance. Clusters 3 and 4 represent transfer banks and intermediary banks, respectively, while Cluster 2 encompasses institutions with a treasury-oriented strategy, focusing on resource allocation in TVM. The smallest cluster, Cluster 1, is characterized by a focus on the asset account ”other credits.” The findings demonstrate the active role of banks in their resource allocation, reinforced by post-Keynesian theory regarding the banking firm.