IRIBA Working Paper 06: Restructuring Brazil's National Financial System

Abstract

This work focuses the recent development of the Brazilian Financial System and its institutions. It initially presents an overview of the credit market in the post-Real Plan period. After stabilization, financial institutions had to be completely reformed. A very conservative and successful regulatory framework was created to avoid the permanent instability of the past. The paper also analyses the impact of the rapid credit growth after 2004 and the role of state-owned banks to compensate the impact of the international crisis of 2008. It is important to note that the process of formulation and implementation of the financial market reforms was not the result of a previous strategic planning, but a response based on the past experience of the internal and external crises and the political opportunities, which were created after 1994.

Citation

Torres Filho, E.T.; Macahyba, L.; Zeidan, R. IRIBA Working Paper 06: Restructuring Brazil’s National Financial System. International Research Initiative on Brazil and Africa (IRIBA), University of Manchester, Manchester, Brazil (2014) 46 pp.

IRIBA Working Paper 06: Restructuring Brazil’s National Financial System

Published 1 January 2014