Nothing seems to stand in the way of Brazilian banks, which this year occupy all top five spots in the Latin America ranking by Tier 1 capital. There are concerns that unprecedented bank lending growth may lead to a credit bubble in the country, but such fears are put in perspective by the percentage that lending represents within the country’s gross domestic product. This stands at about 50% and is still significantly lower than the 80% of Chile, which is often dubbed Latin America's most stable country.
Itaú Unibanco continues to hold first position in the regional list, but lost one place in the global ranking, sitting at number 34. Banco do Brasil, on the other hand, has overtaken Bradesco as second strongest Latin American bank and has climbed up to number 38 in the overall ranking, seven positions higher than last year. Banco Safra has also shown progress and its larger Tier 1 capital pushed the bank to fifth place in the regional list.
