Long-term challenges

The banking system has recorded major structural advances in the past 15 years, such as the privatization of state-owned banks, an inflow of foreign capital, and mergers and acquisitions. This has resulted in a solid and profitable sector whose credit portfolios have low risk. However, credit is predominantly short-term, and Brazil has the highest spread and interest rates in the world. It may take some time before the system is providing long-term financing to infrastructure and industrial undertakings. By Liliana Lavoratti.