Banking in Brazil : Structure, Performance, Drivers, and Policy Implications

The objective of this paper is to analyze the industry structure of banking services in Brazil in order to shed light on financial performance and its drivers at a disaggregated level. The study illustrates how differences across market segments - which tend to be averaged out in aggregate analysis - need to be taken into account when analyzing performance and designing public policy for the banking sector. In particular, retail banking is found to be less sensitive to price competition and to exhibit considerably higher returns than corporate banking. The authors identify and discuss the factors underlying revenues, costs, and risks in each market segment, and conclude with policy implications.

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Bibliographic Details
Main Authors: Urdapilleta, Eduardo, Stephanou, Constantinos
Language:English
Published: 2009-01-01
Subjects:ACCOUNTING, ACCOUNTING PRACTICES, ARREARS, ASSET MANAGEMENT, ASSETS RATIOS, AUCTION, BALANCE SHEET, BALANCE SHEETS, BANK ACCOUNTS, BANK HOLDING, BANK HOLDING COMPANIES, BANK LENDING, BANK RATES, BANKING INDUSTRY, BANKING MARKET, BANKING SECTOR, BANKING SERVICES, BANKING SYSTEM, BANKRUPTCY, BANKRUPTCY LAW, BARRIERS TO ENTRY, BASIS POINTS, BINDING CONSTRAINT, BORROWER, BRANCH NETWORK, BRANCH NETWORKS, BROKERAGE, BUSINESS CYCLE, CAPITAL ADEQUACY, CAPITAL BASE, CAPITAL MARKETS, CAPITAL MARKETS DEVELOPMENT, CAPITAL REQUIREMENT, CAPITAL REQUIREMENTS, CAPTIVE MARKET, CAR LOANS, CENTRAL BANK, CHECKS, CHIEF FINANCIAL OFFICERS, CLEARINGHOUSE, COLLATERAL, COMMERCIAL BANKS, CONSOLIDATED FINANCIAL STATEMENTS, CONSUMER DURABLES, CONTRACT ENFORCEMENT, CORPORATE BANKING, CORPORATE GOVERNANCE, CORPORATE MARKET, CREDIT CARDS, CREDIT COOPERATIVES, CREDIT DECISION, CREDIT HISTORY, CREDIT INFORMATION, CREDIT LOSSES, CREDIT MARKETS, CREDIT OUTSTANDING, CREDIT PROVIDERS, CREDIT RATINGS, CREDIT REPORTING, CREDIT RISK, CREDIT RISKS, CREDIT SCORING, CREDIT SOURCES, CREDIT UNIONS, CREDITOR, CREDITOR RIGHTS, DEBT, DEBT COLLECTION, DEBT LEVELS, DEFAULT RATES, DEMAND DEPOSITS, DEPOSIT, DEPOSIT ACCOUNTS, DEPOSIT INSURANCE, DEPOSITS, DERIVATIVES, DIRECTED CREDIT, DIVERSIFIED MARKET, DOMESTIC CURRENCY, ECONOMIC MANAGEMENT, ECONOMIC RISKS, ENTRY BARRIERS, EQUITY MARKETS, EXCHANGE COMMISSION, FINANCIAL DEVELOPMENT, FINANCIAL INFORMATION, FINANCIAL INFRASTRUCTURE, FINANCIAL INSTITUTIONS, FINANCIAL MARKET, FINANCIAL MARKETS, FINANCIAL PERFORMANCE, FINANCIAL RATIOS, FINANCIAL SECTORS, FINANCIAL SERVICES, FINANCIAL STABILITY, FINANCIAL STATEMENTS, FINANCIAL SYSTEM, FINANCIAL TRANSACTIONS, FIXED ASSETS, FIXED COSTS, FORECLOSURE, FORECLOSURE PROCEDURES, FOREIGN BANKS, FOREIGN CURRENCY, FOREIGN CURRENCY LOANS, FOREIGN EXCHANGE, GOVERNMENT ACCOUNT, GOVERNMENT BONDS, GOVERNMENT INTERVENTIONS, GOVERNMENT INVOLVEMENT, GOVERNMENT POLICIES, GOVERNMENT POLICY, GOVERNMENT SECURITIES, HOUSING, HOUSING FINANCE, INCOME TAX, INFORMATION ASYMMETRIES, INFORMATION ON BORROWERS, INFORMATION TECHNOLOGY, INSTITUTIONAL CAPACITY, INSURANCE, INSURANCE MARKETS, INTEREST EXPENSE, INTEREST INCOME, INTEREST MARGIN, INTEREST RATE, INTEREST RATE RISK, INTEREST RATES, INTERMEDIATION SPREADS, INTERNATIONAL BANK, INTERNATIONAL FINANCIAL CRISIS, INTERNATIONAL FINANCIAL STATISTICS, INVESTING, INVESTMENT BANKING, INVESTMENT CLIMATE, LEASED ASSETS, LEGAL RIGHTS, LENDING REQUIREMENTS, LEVY, LIABILITY, LIQUIDITY, LOAN, LOAN LOSS PROVISIONS, LOAN PRODUCT, LOAN PRODUCTS, LOAN RATES, LOAN SPREAD, LOAN SPREADS, LOANS TO INDIVIDUALS, LONG-TERM DEBT, LONG-TERM FINANCE, LONG-TERM RESOURCES, MACROECONOMIC ENVIRONMENT, MACROECONOMIC INSTABILITY, MANDATES, MARKET DEVELOPMENTS, MARKET FOR LOANS, MARKET INTEREST RATES, MARKET PRACTICE, MARKET SHARE, MARKET STRUCTURE, MATURITY, MICRO-ENTERPRISES, MICROCREDIT, MIGRATION, MINIMUM CAPITAL ADEQUACY RATIO, NET OPERATING INCOME, NEW ENTRANTS, NON-PERFORMING LOANS, NPL, OPERATING COSTS, OPERATING EXPENSES, OPERATIONAL RISKS, OVERHEAD COSTS, OWNERSHIP STRUCTURES, PAYMENT SYSTEM, PAYMENT SYSTEMS, PENSION, PENSION FUNDS, PERSONAL LOANS, PRIVATE BANK, PRIVATE BANKS, PRIVATE CREDIT, PRIVATE CREDIT BUREAUS, PROBABILITY OF DEFAULT, PRODUCTIVITY, PROFITABILITY, PROFITABILITY MEASURES, PUBLIC BANKS, PUBLIC POLICY, RATE OF RETURN, RATES OF RETURN, REPOS, RESERVE, RESERVE REQUIREMENTS, RETAIL BANKING, RETURN, RETURN ON ASSETS, RETURNS, RISK MANAGEMENT, RISK WEIGHTED ASSETS, RURAL CREDIT, RURAL FINANCE, SAVINGS, SAVINGS ACCOUNTS, SAVINGS DEPOSITS, SECURITIES, SETTLEMENT, SHORT MATURITIES, SMALL BUSINESS, SMALL BUSINESSES, SOLVENCY, STOCK EXCHANGE, SUBORDINATED DEBT, TAX, TAXATION, TIME DEPOSITS, TRADING, TRANSACTION, TRANSPARENCY, TREASURY, TREASURY LINE, VALUATIONS, VARIABLE COSTS,
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090107083307
https://hdl.handle.net/10986/4007
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