Although during the month of February, Bank spreads, i.e. the ratio between the cost of acquisition and the rates charged to customers, fell to 29.7 percentage points, from 30.5 percentage points for the month of January, they are in an excessively high level making a good part of potential applicants of credits are automatically excluded. The current situation makes that profitable investment projects but with low risk (and logically, with low profitability), not to carry out their investments since the high financial cost makes that they are not profitable. The Central Bank of Brazil is seeking to shrink this differential rates and according to this, announced that it will present you in today, a number of proposals to the national monetary Council. These measures include a positive cadastre, which will allow customers to carry a credit history banking institution to another and get better credit terms (increasing competition and reducing the cost of credit rating). From the Brazilian business community has requested that the Government will reduce the tax burden affecting the banking spread. With these initiatives for the Brazilian banking sector, increase growth prospects. This year, the Central Bank of Brazil predicts a growth in the volume of credit of 14%, acceptable level considering the external context of instability, their impact on the Brazilian economy and the fact that expected growth and inflation rates mean that it produces a credit growth in terms of GDP.
Banking private of Brazil (and especially for large entities), the initiatives carried out by the Brazilian Government increase the challenges of 2009. The struggle to gain share in the banking market will be tough in a context where the effects of the external crisis will act as an obstacle to the credit dynamics. Banking public owns 50% of the credit stock of the Brazilian banking system. This coupled with the low level of credit to existing PBI and the potential impact of the measures of the Government to reduce the cost of credit, make private banks have a potential for expansion rather than attractive. And while in developed economies the banking sector struggles to survive a new episodes of crisis, in Brazil it is time of growth and consolidation of the sector may be Brazilian banks take this opportunity?