The Brazilian banking system has been characterized by important and profound structural changes over the years. Even at the end of the 80s the banking system was purely publicly owned, with little competition and a limited presence of foreign banks, but already at the beginning of the new millennium the situation had profoundly changed and the domestic and foreign banks present in Brazil they are mostly private and operate in a competitive regime. The banking system is showing signs of progressive adaptation and compliance with international principles.
The levels of capitalization are increasing and the offer of financial products is gradually adapting to the ever more pressing demands of the company. But the Brazilian banking system still has anomalies today which characterize it and distance it from international banking commercial practice. In particular, the differentials between lending and deposit rates are still high with heavy consequences on capital accumulation. This system is favored by the concentration of the offer in a few main institutes. Suffice it to say that the top four Brazilian banking institutions own over 60% of the branches in the federal territory.
The main banks of Brazil
Il Bank of Brazil (www.bc.gov.br) is the number one bank in Brazil and Latin America and is 53,65% controlled by the Brazilian Ministry of the Treasury. Banco do Brasil is committed to the development of the Brazilian economy with a strong presence in the agricultural sector, supporting domestic and foreign companies. Its presence is also international, including Italy.
CEF (www1.caixa.gov.br) is the second largest Brazilian bank and is present in thousands of cities: it is ranked as the third financial institution in Brazil by number of branches. Caixa has more than 32 million accounts, with liabilities worth more than R148 billion in savings or investments. Together with government pension funds and other government resources, Caixa controls more than R$386.000.000.000 billion (approximately US$200 billion). Caixa is seen as a tool for public investment and expanding access to financial services to the Brazilian public.
Itau Unibanco Holding (www.itau.com.br) born in 2008 from the merger of Banco Itaú and Unibanco, is the second largest bank in Brazil. The bank is characterized by a high diversification of business ranging from retail banking (20% of branches throughout the Brazilian state) to investment banking. Itaú Unibanco has experienced strong growth, both organic and external, throughout South America in recent years, targeting both corporate and retail customers equally.
Banco Bradesco (www.bradesco.com.br) is the third largest bank in Brazil, the largest private bank before the merger between Unibanco and Banco Itaù. Bradesco is constantly expanding and has recently acquired Banco do Estado do Maranhão, Banco Mercantil de São Paulo, Banco Ibi SA Banco.
Banco Santander Brazil (www.santander.com.br) controlled by the Spanish bank of the same name and listed on the Sao Paulo stock exchange in 2009, is the fourth largest bank in Brazil since 2007, when the acquisition of Banco Real from Abn Ambro took place. Belonging to the Santander group also allows you to have a lower cost of capital than your competitors.
National Bank of Economic and Social Development – BNDES (www.bnds.gov.br) is the national bank for social economic development. It is a federal public company attached to the Ministry of Development, Industry and Foreign Trade. Since the 50s, it has financed and supported industrial and infrastructure activities, investments in agriculture, commerce and services to micro, small and medium-large enterprises.
di Francesco Rendina
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