According to a recent report from Brazil’s Central Bank, public banks such as Banco do Brasil (BB), Caixa Economica Federal and BRB, injected R$ 65.7 billion in loans in the second quarter alone. These loans represent 70% of the R$93 billion borrowed by the entire financial system in the period.
Of the three institutions, the most aggressive one was Caixa Economica, led by Jorge Hereda, which expanded its portfolio by 51% in the first quarter, favored by the amount of external loans that were ported into its accounts. Around 27 thousand people transferred their debts to the bank in that period. Banco do Brasil, led by Aldemir Bendine, reduced its interest rates b y up to 30% and saw its market share rise from 19.2% to 19.5%.
Despite this more aggressive lending, the banks said, the impact on their balance sheets was “relatively small” and both BB and Caixa announced billions in record profits.