After the 2014’s anomaly in the banking industry, investors in the Brazilian banking sector were left puzzled. Although banks are most affected during such troubling economic times, Itau Unibanco and Banco Bradesco, the two biggest private banks in Brazil saw an increase in their shares and profits.
But how did these two banks make profits during turbulent times? Brazilian banking expert, Igor Cornelsen gives an explanation for this. Private banking institutions in Brazil lends to borrowers who are wealthy and worth the credit. This gives the banks a sense of security, a factor that enables them to remain stable during unstable economic seasons.
Why Is Brazil The Best Investment Destination?
The rich natural resource endowment coupled with the need for infrastructure development makes Brazil one of the best environments to invest. The rapidly growing population combined with massive food production makes Brazil the most attractive investment market in South America.
Presence of Ten Major Banks
Brazi is the economic powerhouse of South America and eighth largest economy in the world. Brazil has ten of the greatest banks in the world. These banks include Banco Itau, Banco Bradesco; Banco do Brasil, Banrisul, HSBC, BTC Pactual, Santander, Caixa Economica Federal, and Citibank Brazil.
The new Brazilian administration is thought to less interventionist, and therefore, devaluation will be controlled. This will, in turn, make export goods become more competitive and attract investments in the export market.
Hope in the Financial Industry
The newly appointed finance minister in Brazil seems to bring back hope to the financial industry after the former minister’s ideas failed. The newly laid plans on fiscal reforms are thought to bring hope back in the Brazilian banking sector.
About Igor Cornelsen
Cornelsen is a prominent investment banker. Igor has worked for some of the largest banking institutions in the world. Igor is an investor with Bainbridge Group, an organization that specializes in stock market and foreign exchange. Igor Cornelsen has served in many local and international banks earning him both local and global recognitions. Before retiring, Igor had helped many investors in developing long-term financial security. http://www.lulu.com/spotlight/igorcornelsen