Do Brazilian Banks Compete?

More developed financial systems are associated with higher investment and better economic performance. This paper discusses possible factors that may inhibit a deepening of bank intermediation and more efficient banking in Brazil, two aspects that are found to be significantly different than in lea...

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Bibliographic Details
Main Author: Belaisch, Agnes
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2003
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Do Brazilian Banks Compete?  |c Agnes Belaisch 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2003 
300 |a 22 pages 
651 4 |a Brazil 
653 |a Depository Institutions 
653 |a Banks and banking, Foreign 
653 |a Commercial banks 
653 |a Banks 
653 |a Finance 
653 |a Industries: Financial Services 
653 |a Banks and banking 
653 |a Financial institutions 
653 |a Micro Finance Institutions 
653 |a State-owned banks 
653 |a Market Structure and Pricing: Oligopoly and Other Forms of Market Imperfection 
653 |a Competition 
653 |a General Financial Markets: General (includes Measurement and Data) 
653 |a Mortgages 
653 |a Loans 
653 |a Financial markets 
653 |a Banks and Banking 
653 |a Banking 
653 |a Foreign banks 
653 |a Finance: General 
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520 |a More developed financial systems are associated with higher investment and better economic performance. This paper discusses possible factors that may inhibit a deepening of bank intermediation and more efficient banking in Brazil, two aspects that are found to be significantly different than in leading banking systems in other parts of the world. Using panel data, it finds positive evidence of the presence of a noncompetitive market structure in the Brazilian banking system, a factor that could explain why intermediation may be relatively low and costly. When banks behave like local monopolies or oligopolies, incentives to improve efficiency are weak and the interest rate spread is large, discouraging higher lending volumes