According to Alliance Bernstein (via FT), “total earned income in Brazil more than doubled over the past decade. But personal debt rose more than 10-fold during the same period. Over the past year, the rate of non-performing loans (those more than 90 days in arrears) has crept up to about 8 per cent. While that’s below a recent high during the 2008/09 crisis, it is alarming, especially as non-performance has been bad in traditionally safer areas of lending such as collateralised car-loans. Many banks have been forced to raise provisions for non-performance as a result.”

 

Share →