Fernanda Feil, Carmem Feijó, Carlos Henrique Vasconcellos Horn
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Regional credit distribution in Brazil: the role of state-owned financial institutions
ABSTRACT State-owned financial institutions (SFIs) play an important role in regional credit distribution and the promotion of structural change and regional economic development, often contributing to regional convergence. The evolution of SFIs in Brazil after the Second World War, through the 1980s’ debt crisis and 1990s’ financial reform and under Workers Party governments in the new millennium, is outlined. The analysis of a regional credit concentration index from 2010 to 2020 shows that from 2004 to 2015 revived national and subnational SFIs helped drive a phase of regional convergence. Despite their smaller size, subnational SFIs still play a role in regional development as their chief mandate is credit supply.
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