Brazil’s banks have long experience of steering through choppy financial waters and were able to anticipate the country’s current difficulties with a range of pragmatic and forward-looking measures that have rewarded them with increased profits in a shrinking economy.
After BTG Pactual's chief executive, André Esteves, was arrested – if not charged – late last year, the bank’s managers were quick to limit any reputational damage, which included embarking upon a new strategic direction. Brian Caplen charts a turbulent few months for the lender.
Trade finance is emerging as a key part of the Latin American banking business model and is bound to be a hot topic on the agenda at this year's Felaban annual meeting being held in Colombia in November. Ahead of this, The Banker speaks to experts about the challenges and opportunities that this growing business line is creating in the Latin American market.
Having revelled in the economic growth that characterised the past few years, Brazil's banks are now struggling to adapt to a less favourable environment. In response to stalling gross domestic product and disposable income growth, many lenders are curbing their lending, leaving gaps, particularly in the small and medium-sized enterprise segment, for other players to step in.
Emerging market currencies benefited handsomely from the US central bank’s huge quantitative easing programme. With that now being unwound and with China slowing, emerging currencies are now in retreat. Those from economies with weak fundamentals are especially vulnerable.
Brazil's private banking business had a wake-up call in 2013 when a stalling economy triggered a slowdown in its growth, increasing competition and forcing banks to look beyond their existing customer base. Now, armed with new strategies and a wider range of products, can Brazil's private banks finally exploit the full potential of this vast and wealthy market?
The tapering of the US Federal reserve's quantitative easing programme and a higher interest rates environment are mopping up liquidity from emerging markets, separating the top-in-class from the current-account-bingers. How does Latin America fare?
With the US and European crises behind them, South American trade figures are back on an upward slope. Local banks are paving the way for improved relations with China, and Chinese banks are increasing their presence in the region. Even the proximity of the US could have its benefits.
Brasil Plural is a relative newcomer to the financial markets, but has already played an important part in the world’s biggest initial public offering of 2013, to date. However, as Brazil's economy slows, will the bank's diverse approach help it to maintain its early momentum?