The first main point laid out by former Brazilian banker, Igor Cornelsen is that Brazil has ten major players in its banking system. They include both private as well as state or government owned financial institutions. The major banking players also include both commercial and investment banks. Learn more about Igor Cornelsen: http://igorcornelsenbr.snappages.com/
One of the most interesting players in Brazil’s banking system is Banco Itau says Cornelsen. The bank merged with Unibanco, which is another Brazilian bank, back in 2008. The newly merged bank is now experiencing rapid growth and should be monitored by investors in Brazil. The other major Brazilian players include Banrisul, Caixa Economica Federal, Banco do Brasil, Banco Bradesco, Banco J Safra and BTG Pactual.
Igor Cornelsen also notes that Brazil has a number of multinational banks among its top ten banking players. They include the likes of HSBC, Santander and Citibank Brazil.
The next major point that Cornelsen describes about Brazil’s banking system is that there could be major sweeping changes in the financial system with a new finance minister.
Cornelsen believes that Joaquim Levy, the new finance minister will be more conservative in his fiscal policies. This could greatly aid banks and make it easier to do business.
Mr. Cornelsen says that Joaquim Levy should pass policies that will be beneficial for the private banking industry. However, there is a word of caution. It remains to be seen whether any real reform or change in fiscal policy occurs at the finance ministry level. What is certain is that there will no longer be the populist failed economic policy of Dilma Rousseff, which were a disaster economically and financially for Brazil. Read more: Igor Cornelsen Identifies 5 Ways Businesses Can Organize To Be More Successful
The third major point of Brazil’s banking system is to look at Brazil’s largest trade partner. This is China. The Chinese import large quantities of Brazilian raw materials. A booming Chinese economy can have a positive and negative impact on Brazil depending on how you look at it says Cornelsen.
When the Chinese economy is strong, raw material exports can fetch higher prices in Chinese markets. This can benefit the mining, logging and farming industry. On the other hand, China is increasingly becoming competitive in Latin America for the export of manufactured goods. A rising Chinese economy can put Brazilian manufacturers out of business and decrease their revenue.