At the end of 2014, the banking globe was concerned about what was happening with Brazil’s banks. Under Dilma Roussef’s populist policies, it is typical for banks to suffer troubled economic growth. Brazil economy was more troubled by the end of 2104 that the two best private banks, Banco Bradesco (BBD) and Itau Unibanco (ITUB) shares rose only by a third.
According to Brazilian banker and investment expert, Igor Cornelsen, the secret to avoid economic issues is to understand the market and learn lessons. Reporting on prnewswire.com, Igor stated that private banks are only lending to those who are the most worthy of credit.
Igor thinks this lending strategy streamlines costs and makes banks to have a sense of security in future. Therefore people with less worth of credit should focus on lending from public sector banks which poses a challenge to the macro-economy and development of Brazil.
According to Igor, the best solution Brazilian government can offer to make investors secured is to introduce fiscal austerity and more market-oriented reforms. Read more: Igor Cornelsen fala sobre os bancos brasileiros e o que fazer antes de investor
Brazil is among the top food producers globally and is the largest country in South America and eighth largest economy globally making it an attractive market. Learn more about Igor Cornelson: http://www.lulu.com/spotlight/igorcornelsen
However, by 2015, according to Igor, many investors were behind in the world of Brazilian banking. Therefore, he created some tips for investors to understand before considering Brazilian stocks. Igor said that Brazilian banks have ten primary players which include Banco Itau, Banco Bradesco, Banco J Safra, Banco de Brasil, Caixa Economica Federal, HSBC, Banrisul, BTG, Pactual and Santander. Citibank Brazil also is a major bank.
Also, according to Cornelsen, a fresh face could benefit the country. Igor thinks appointing Joaquim Levy the finance minister was an excellent choice for Brazil’s banks. With an IMF background and a PhD. from the University of Chicago, there were hopes for the economy.
China is Brazil’s primary trading partner. Therefore investors should pay attention to China and its trading partners also. Brazil has been having an overvalued currency leading to exports of industrialized goods losing competitiveness. Igor recommends the real value for the real principle meaning Brazil currency should be over-appreciated by investors. Igor Cornelsen hopes for a bright Brazilian future.