Brazil companies struggle for credit as banks downsize
As the number of banks in Brazil drops, so do credit options for companies operating in the country.
Foreign financial institutions are pulling out of the South American nation, medium-sized banks are shrinking and public banks suffer a lack of capital, leaving companies with few options for financing.
According to Valor Econômico, the problem of bank concentration is not new to the country, but did become more prominent again in 2015.
Two of the largest foreign banks in Brazil, Citi and HSBC, are cutting operations in the country. HSBC has already sold its Brazilian unit to Bradesco and Citi is looking for a buyer for its retail bank, the report said.
BTG Pactual, which the newspaper said is known to be one of the most aggressive in the market when taking credit risks, was forced to downsize after it faced liquidity issues caused by the arrest of its former CEO André Esteves in connection with the Lava Jato corruption scandal.
Mid-sized banks like Pine, Indusval and Fibra saw their results deteriorate last year, which led them to reduce operations, according to the paper.
***
UPCOMING BNAMERICAS EVENT
5TH Mexico Infrastructure Summit
Click here to see the agenda and speakers
Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.
News in: Political Risk & Macro (Brazil)
Dividend discord puts Petrobras CEO under political pressure
At the heart of the matter is a disagreement over the distribution of dividends to shareholders of the Brazilian state oil company.
Brazil's Vale sees new round of boardroom clashes
After CEO Eduardo Bartolomeo was confirmed, a board member resigned, accusing the government of interference and causing a crisis.
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects
Get key information on thousands of projects in Latin America, from current stage, to capex, related companies, key contacts and more.
- Project: Centenario Way (Panama Pacifico to Autopista Arraiján - La Chorrera)
- Current stage:
- Updated:
1 day ago
- Project: El Aromo photovoltaic project
- Current stage:
- Updated:
1 day ago
- Project: Araguaia (Phase 2)
- Current stage:
- Updated:
11 hours ago
- Project: Barueri Thermoelectric Plant
- Current stage:
- Updated:
1 day ago
- Project: Alvear - Itaqui international bridge
- Current stage:
- Updated:
1 day ago
- Project: Phase IV Tietê river cleanup
- Current stage:
- Updated:
1 day ago
- Project: Tietê river sanitation - Phase III
- Current stage:
- Updated:
1 day ago
- Project: Urani wind farm
- Current stage:
- Updated:
6 hours ago
- Project: Photovoltaic 3 Solar Project
- Current stage:
- Updated:
1 day ago
- Project: Culebrinas Water Treatment Plant Rehabilitation
- Current stage:
- Updated:
1 day ago
Other companies
Get key information on thousands of companies in Latin America, from projects, to contacts, shareholders, related news and more.
- Company: Zenith Energy Corp., S.R.L.
- Company: Etermar Sucursal Perú  (Etermar Perú)
-
Etermar Peru is the local branch of the Portuguese maritime engineering and construction company Etermar. The company began operations in Peru in 2017. Etermar provides services...
- Company: Pluspetrol Bolivia Corporatión
- Company: Energía 2000 S.A.  (Energía 2000)
-
Energía 2000 S.R.L is a company based in Dominican Republic and engaged in generation and sale of electric power. The firm is in charge of Manzanillo Power Energía 2000 thermoel...