Only 15% of Brazilians Have a Bank Account

    The coordinator of the Economics and Market Commission of the Association and Syndicate of Banks of Rio de Janeiro (Aberj/Sberj), Alexandre Póvoa, declared that the International Monetary Fund’s (IMF) report, “Stabilization and Reform in Latin America,” released last week, is mistaken in contending that there is no competitiveness among Brazilian banks.

    According to Póvoa, Brazilian banks are in no way inferior to international financial entities when it comes to technology, customer relations, and Internet services.


    He admitted that competition is perhaps not as intense as one would like, because demand in the country remains limited, and the volume of credit in the economy is low in relation to Gross Domestic Product (GDP).


    He said that the portion of the population with bank accounts is very modest, currently about 15% of the total. Besides the small volume of demand, its quality is not good, and, as a result, customer services are not entirely satisfactory.


    In consequence of bank spreads, as well as the heavy tax burden, the volume of credit in the economy, that is, the amount of money that is loaned, is very low: 27% of the GDP.


    Póvoa believes that “when the national economy resumes its growth in a more consistent fashion, the volume of credit will tend to expand, and competition will appear.”


    Translation: David Silberstein
    Agência Brasil

    Tags:

    • Show Comments (1)

    • Guest

      Oh my gosh!
      That just sucks for those people who don’t have a bank account. It upsets me very very much, because I am an American citizen who has their own account, and I can’t imagine a world without one!!

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    Brazil Triples Alcohol Exports. Blame It on the US.

    Brazil tripled its exports of alcohol in 2004, while exports of sugar grew 20%. ...

    Real, the Brazilian currency

    US and UK Main Beneficiaries of Brazil’s US$ 152 Billion Foreign Investment

    The transfer of money from Brazil abroad, turned to financial investment both by natural ...

    Brazilian Bradesco Rated BB+ by Fitch for Long Term Foreign Currency

    Fitch Ratings, the international rating agency, has given Brazil’s Banco Bradesco S.A. a BB- ...

    Guido Mantega and Henrique Meirelles

    Brazil Taps Money from US$ 207 Billion Foreign Reserves to Fund Exports

    Henrique Meirelles, the president of Brazil's Central Bank (BC)announced Monday, October 6, that his ...

    Aladdin, a Brazilian child's beloved character

    Aladdin, Ali Baba and the Building of the Brazilian Character

    Brazilian Rafael Maia was not quite certain of where the Arab countries were located ...

    The New Abolition

    The persistence of poverty in Brazil stems from the fact  that we endeavor to ...

    Brazilian president Lula and Vietnamese counterpart, Nguyen

    Vietnam Win Over US Is Life Lesson to The World, Says Brazil’s Lula in Hanoi

    Luiz Inácio Lula da Silva, the Brazilian president, during his visit to Vietnam and ...

    Brazil Wants More than an Apology from London for Killing of Brazilian

    Federal deputy Maria José Maninha from the Workers Party has called for action by ...