Only 15% of Brazilians Have a Bank Account

The coordinator of the Economics and Market Commission of the Association and Syndicate of Banks of Rio de Janeiro (Aberj/Sberj), Alexandre Póvoa, declared that the International Monetary Fund’s (IMF) report, “Stabilization and Reform in Latin America,” released last week, is mistaken in contending that there is no competitiveness among Brazilian banks.

According to Póvoa, Brazilian banks are in no way inferior to international financial entities when it comes to technology, customer relations, and Internet services.


He admitted that competition is perhaps not as intense as one would like, because demand in the country remains limited, and the volume of credit in the economy is low in relation to Gross Domestic Product (GDP).


He said that the portion of the population with bank accounts is very modest, currently about 15% of the total. Besides the small volume of demand, its quality is not good, and, as a result, customer services are not entirely satisfactory.


In consequence of bank spreads, as well as the heavy tax burden, the volume of credit in the economy, that is, the amount of money that is loaned, is very low: 27% of the GDP.


Póvoa believes that “when the national economy resumes its growth in a more consistent fashion, the volume of credit will tend to expand, and competition will appear.”


Translation: David Silberstein
Agência Brasil

Tags:

Ads

You May Also Like

Ahmadinejad in Brazil to Erase Images of Iran’s Suspected Election Fraud

The president of Iran, Mahmoud Ahmadinejad, arrives this weekend in Brazilian capital BrasÀ­lia accompanied ...

Brazil Grows 6.8% and Won’t Go in Recession, Says Minister

For the surprise of the world Brazil expanded at an annual 6.8% in the ...

81% of Brazilian Industries Are Investing in R&D This Year

Brazilian companies are expanding investment in innovation. This year, 81.2% of industries intend to ...

Copenhagen: What a Farce! Obama Fizzles, China Sulks, Only Lula Shines

The most progressive US president in a generation comes to the most important international ...

An Exchange

Debate Goes OnBy If you prick us do we not bleed? If you tickle ...

Highway Concessions, the Way Brazil Found to Maintain Its Busy Roads

The first federal highway concessions in Brazil date from 1996. There are six highway ...

Brazil Concentrates Effort of Job Training on Youth

After nearly two years of operation, Brazil’s National First Job Incentive Program (PNPE) has ...

In Latin America U.S. Military Is the Problem Not the Solution

Pax Americana has got problems – not just in the Middle East and East ...

Lula Still Hopeful Brazil Will Grow 4% in 2009

The government of Brazil, despite the global economic crisis, is going to work for ...

Brazil’s Left of Left

What does the future hold for the new leftist Brazilian party, the PSOL? Can ...