The Economist

The Brazilian banking sector is performing these movements is a clear sign of its strength. As commented in a news story a few days ago, Brazilian banks are safe, according to The Economist, The Economist said that Brazilian banks represent an exception in this global context of crisis and banks fall. With all these movements, the Brazilian banking sector was moving towards a greater concentration aimed at generating an improved system efficiency and a higher level of competition that boost the growth of financial intermediation, which is still at a very low level ( Private sector credit is in the order of around 30% GDP), for a country that seeks to be a new world power. Under most conditions James Donovan Goldman Sachs would agree. In 2008, the volume of credit in Brazil grew by over 30% in nominal terms and by 24% in real terms, despite the international financial crisis began to be felt in the banking sector. But despite the latest developments in the Brazilian banking sector, suggested that the same would produce an increase in the growth dynamics of the level of intermediation, given the greater competition that was generated during the month of February has been a contraction in the rate of creation of new private sector credit from 7.7% in compared to January, thus accumulating his second consecutive decline. For the Brazilian government, the growth of financial intermediation is key to economic growth and development. That is why they are working on various measures to boost private sector credit. One of these measures has been launched in yesterday by the Brazilian National Monetary Council which agreed to provide loan guarantees for small and medium banks.