While Latin America braces itself for the economic impact of Covid-19 in the second half of 2020, its banks entered the year in relatively good shape. Top lenders across the region are well capitalised, as shown by their capital adequacy ratios as observed by The Banker Database. This is set to help them absorb the inevitable souring of corporate and retail loans and lower activity in other divisions.
In terms of size, the Brazilian names that traditionally lead the Tier 1 capital regional ranking are still firmly at the top: Itau Unibanco, Banco Bradesco, Banco do Brasil and Caixa Economica Federal. After a 30.89% Tier 1 capital expansion, BTG Pactual has jumped three positions to ninth place in the regional ranking.
