The impact of the increase of foreign capital in the Brazilian banking sector: analysis of selected variables

• Autor(a) principal: Coutinho, Eduardo Senra
• Data de Publicação: 2003
• Outros Autores: Amaral, Hudson Fernandes
• Tipo de documento: Artigo
• Idioma: por
• Título da fonte: Revista de Administração Pública
• Texto Completo: https://periodicos.fgv.br/rap/article/view/6511
• topic: banking sector; capital entry; foreign capital; efficiency.; setor bancário; abertura financeira; capital estrangeiro; eficiência.

Recently, the banking system received a considerable amount of foreign capital, due to the sector’s appeal, i.e., return on investments and the federal government's deliberate policy of stimulating this capital entry. This policy is based on the belief that a larger participation of foreign capital in the Brazilian financial system would strengthen the sector and supply thecapital market, which is insufficiently funded due to the  interruption of the inflationary gains. With the relaxation of the rules for the entrance of the foreign capital, more efficiency and competition in the segment and lower costs for credit borrowers were expected. This article evaluated the evolution of the net margin, the revenue from fees, and the earnings from netassets between 1990 and 2001. The analysis of these variables from the three largest national private banks revealed that although there have been signs of the desired effects, it is still early to attest that the proposed benefits have been reached.