What the International Monetary Fund Has to Say
- Brazil's banks have, with some exceptions, weathered global financial crises well, owing to their robust balance sheet, timely measures by the authorities, and favorable domestic environment
-Brazil's financial sector is diverse with a high level of conglomeration, public sector presence and concentration:
"It is organized around a few financial conglomerates, which are often headed by a commercial bank, that control over 75 percent of the system’s assets,. The largest five banks account for about 40 percent of the assets in the financial system and 66 percent of the bank assets, respectively; Brazil’s major development bank, Banco Nacional de Desenvolvimento Econômico e Social (BNDES), accounts for 14 percent of the bank assets, and thus the largest six banks account for 80 percent of the assets in the banking system (Table 1). The portion of publicly owned banks is close to 45 percent, which is relatively high.1 The remaining 140 banks and more than 1,300 credit unions account for 20 percent of the assets."
- Brazilian banks have experienced a constant flow of credit loss during the last decade albeit without major peaks.
These peaks relate to economic concept of business cycles because in most of the time there is an expansion, peak, contraction, and trough, though with the flow of credit loss there isn't that many peaks, which means it's one of the instances which doesn't fully go with the business cycle. It also means Brazil has good credit and therefore relates to money as money is used as a means of trade and rather than use bartering Brazil can be loaned money to pay for projects within and even outside its borders and pay back in money rather than a certain product.
In business, conglomerates are companies with three or more companies from little or unrelated fields, and as Brazil has a high level of conglomerates it therefore has high diversity and companies have sectors to fall back on should one or two fail.
-Brazil's financial sector is diverse with a high level of conglomeration, public sector presence and concentration:
"It is organized around a few financial conglomerates, which are often headed by a commercial bank, that control over 75 percent of the system’s assets,. The largest five banks account for about 40 percent of the assets in the financial system and 66 percent of the bank assets, respectively; Brazil’s major development bank, Banco Nacional de Desenvolvimento Econômico e Social (BNDES), accounts for 14 percent of the bank assets, and thus the largest six banks account for 80 percent of the assets in the banking system (Table 1). The portion of publicly owned banks is close to 45 percent, which is relatively high.1 The remaining 140 banks and more than 1,300 credit unions account for 20 percent of the assets."
- Brazilian banks have experienced a constant flow of credit loss during the last decade albeit without major peaks.
These peaks relate to economic concept of business cycles because in most of the time there is an expansion, peak, contraction, and trough, though with the flow of credit loss there isn't that many peaks, which means it's one of the instances which doesn't fully go with the business cycle. It also means Brazil has good credit and therefore relates to money as money is used as a means of trade and rather than use bartering Brazil can be loaned money to pay for projects within and even outside its borders and pay back in money rather than a certain product.
In business, conglomerates are companies with three or more companies from little or unrelated fields, and as Brazil has a high level of conglomerates it therefore has high diversity and companies have sectors to fall back on should one or two fail.
Brazil's Ownership of US Treasury Bonds VS Others
The Stock Exchange of Brazil
In Brazil the main stock exchange is BOVESPA, which is located in Sao Paulo. The equity market opens at about 9:30-10:00 and closes at 6:00 PM. The BMF BOVESPA was created in 2008 by a merger between BOVESPA and BMF, the two largest exchanges in Latin America. With a totally integrated business model, a wide array of financial products, and the largest stock and derivative market in Latin America, BMF BOVESPA is one of the world's largest exchanges in market value. In a partnership with NYSE Euronext the BMF BOVESPA has received industry-leading micro-second technology for the stock market, improving its quality and drawing more investors to the market.