The argument that banks may be taking on too much risk is supported by the high loan-to-deposit ratios at some Brazilian banks. For example, Itau Unibanco has a loan-to-deposit (LTD) ratio of 146%, while Banco Bradesco has an LTD ratio of 133%.
Such figures have led several international investors to draw parallels with the US, saying that Brazil’s levels of personal debt can be compared to data from the US in the run up to the financial crisis.