Igor Cornelsen: Why Brazilian Banks Aren’t Affected by The Economy

 

At the end of 2014, the banking industry was shocked about the anomalies in most of the banks in Brazil. It is believed that most of the banks suffer when there is any trouble in the economic. However, this did not happen in Brazil. When Dilma Rousseff was the president of the country, there was no economic growth, because of the populist ideas that were being used. By the end of the year, the economy was in a dangerous mess.

The country has two main private banks, known as Itau Unibanco and the Banco Bradesco. The two banks reported that their shares significantly rose up in the year. The two private banks also reported that they had solid profit increases. Investors in the world are shocked how these banks have been able to weather the storm.

 

Igor Cornelsen is one of the top investment experts and bankers who is based in Brazil. Igor says that the country has managed to withstand the storm because the professionals working in the banks have a lot of knowledge in the market, and they have also gained a lot of experience during the turbulent years.

 

Igor Cornelsen says that the Brazilian bankers, especially those in the private industry have only been giving loans to the borrowers who prove to the worthy of the credit. This secret ensures that the costs are streamlined, and the banks get the sense of security they need to look ahead. Cornelsen notes that the individuals with less desirable credit are forced to look for help in the public industry bank or the cash-based spending. Some of them are also forced to forego their business plans because they cannot get the funds needed.

 

He has blogged about how the formula used in these private banks has severely affected the macro economy of the country, and the development of the country is affected too. The Brazilian government should put measures in place to ensure that the investors in the country feel secure. The government should also instill more market-oriented fiscal austerity and reforms that will make the individuals in the middle-class access credit. If these small investors are given an opportunity, then the country will experience the growth it needs.  Read more about Igor on Wikidot.