For years, the knock against Brazil has been its “lack of predictability.” One year the growth rate might be great, but the next, it might be dismal. Learn why Brazil Banking Expert Igor Cornelsen thinks that might have changed.
“Under Lula, Stability Was Established”
Brazil President Lula made the nation’s poor happy with affordable housing loans and the wealthy happy with increasing the nation’s growth rates. The World Cup and Olympics raised the prestige level of the entire nation. Finally, Brazil was moving from developing to developed status.
Other beneficiaries of this new-found stability have been the Brazil banks, according to Brasil Wealth Advisor Igor Cornelsen. While the US banks offered more risky loans to the poor, the Brazil banks were offering more low-risk loans to high net worth clientele.
In 2011 and 2012, the top North or South American banks based on return on equity investment (ROE), according to Economatica, were Brazilian banks. In 2011, Bradesco had an ROE of 19.83%. Itau actually earned the top spot with a higher ROE in 2011.
“Brazil Competes With US”
No longer are the victories of Brazil over the US simply on the soccer field: now Brazil is winning in the banking sector too. Brazil Banking Expert Igor Cornelsen’s CNBC interview helped guide investors who wanted to diversify into South American banks.
Learn more about Igor Cornelsen: