The big banks and their small banks: Market division for low-income credit holders and interest comparison within the conglomerates
Autor(a) principal: | |
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Data de Publicação: | 2022 |
Outros Autores: | , , , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Economic Analysis of law Review |
Texto Completo: | https://portalrevistas.ucb.br/index.php/EALR/article/view/12481 |
Resumo: | “Finance companies” (technically, credit, financing, and investment companies - SCFIs) coexist with large banks within economic conglomerates. Using historical series of interest rates, we tested the hypothesis that SCFIs belonging to banking groups and other subsidiary institutions (non-major banks) would focus on more vulnerable customers, who would accept to contract credit at higher interest rates than those practiced by large banks of the same group, in the same credit modalities. We conclude that our data capture evidence of the practice of higher interest rates by subsidiaries (SCFIs or subsidiary banks) comparing to the respective main banks, which may reflect the credit specialization in certain niche markets; however, we also find situations in which major banks charge higher interest rates than their subsidiaries. Furthermore, we present the main resolutions of the National Monetary Council (CMN) that regulate SCFIs and highlight the SCFIs' relationships with banks, banking correspondents, and franchises. Finally, we examine the equity profile of SCFIs according to the following categories: (i) financial institutions linked to one of the five major banks; (ii) financials linked to banking conglomerates, except those of the five major banks; (iii) financial institutions linked to non-banking economic groups; (iv) independent financial companies. |
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Economic Analysis of law Review |
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The big banks and their small banks: Market division for low-income credit holders and interest comparison within the conglomeratescredit financing and investment companies non-banking financial institutions banks shareholder profile interest rates.“Finance companies” (technically, credit, financing, and investment companies - SCFIs) coexist with large banks within economic conglomerates. Using historical series of interest rates, we tested the hypothesis that SCFIs belonging to banking groups and other subsidiary institutions (non-major banks) would focus on more vulnerable customers, who would accept to contract credit at higher interest rates than those practiced by large banks of the same group, in the same credit modalities. We conclude that our data capture evidence of the practice of higher interest rates by subsidiaries (SCFIs or subsidiary banks) comparing to the respective main banks, which may reflect the credit specialization in certain niche markets; however, we also find situations in which major banks charge higher interest rates than their subsidiaries. Furthermore, we present the main resolutions of the National Monetary Council (CMN) that regulate SCFIs and highlight the SCFIs' relationships with banks, banking correspondents, and franchises. Finally, we examine the equity profile of SCFIs according to the following categories: (i) financial institutions linked to one of the five major banks; (ii) financials linked to banking conglomerates, except those of the five major banks; (iii) financial institutions linked to non-banking economic groups; (iv) independent financial companies.Universidade Católica de Brasília2022-07-02info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionAvaliado por Pares; Peer ReviewedTime series comparisonapplication/pdfhttps://portalrevistas.ucb.br/index.php/EALR/article/view/1248110.31501/ealr.v13i2.12481Economic Analysis of Law Review; Vol. 13 No. 2 (2022): Economic Analysis of Law Review; 43-71Economic Analysis of Law Review ; Vol. 13 Núm. 2 (2022): Economic Analysis of Law Review; 43-71Economic Analysis of Law Review; v. 13 n. 2 (2022): Economic Analysis of Law Review; 43-712178-0587reponame:Economic Analysis of law Reviewinstname:Universidade Católica de Brasília (UCB)instacron:UCBenghttps://portalrevistas.ucb.br/index.php/EALR/article/view/12481/11143Copyright (c) 2022 Economic Analysis of Law Reviewinfo:eu-repo/semantics/openAccessBertran, Maria Paula CostaFerreira Veronese, DaviCampos Mesquita, Antonio TadeuMoretti, Fabio JoséPereira Ribeiro, Iara2023-06-15T18:39:02Zoai:ojs.portalrevistas.ucb.br:article/12481Revistahttps://portalrevistas.ucb.br/index.php/ealrONGhttps://portalrevistas.ucb.br/index.php/EALR/oaieditor.ealr@gmail.com||sdi@ucb.br||benjaminm.tabak@gmail.com2178-05872178-0587opendoar:2023-06-15T18:39:02Economic Analysis of law Review - Universidade Católica de Brasília (UCB)false |
dc.title.none.fl_str_mv |
The big banks and their small banks: Market division for low-income credit holders and interest comparison within the conglomerates |
title |
The big banks and their small banks: Market division for low-income credit holders and interest comparison within the conglomerates |
spellingShingle |
The big banks and their small banks: Market division for low-income credit holders and interest comparison within the conglomerates Bertran, Maria Paula Costa credit financing and investment companies non-banking financial institutions banks shareholder profile interest rates. |
title_short |
The big banks and their small banks: Market division for low-income credit holders and interest comparison within the conglomerates |
title_full |
The big banks and their small banks: Market division for low-income credit holders and interest comparison within the conglomerates |
title_fullStr |
The big banks and their small banks: Market division for low-income credit holders and interest comparison within the conglomerates |
title_full_unstemmed |
The big banks and their small banks: Market division for low-income credit holders and interest comparison within the conglomerates |
title_sort |
The big banks and their small banks: Market division for low-income credit holders and interest comparison within the conglomerates |
author |
Bertran, Maria Paula Costa |
author_facet |
Bertran, Maria Paula Costa Ferreira Veronese, Davi Campos Mesquita, Antonio Tadeu Moretti, Fabio José Pereira Ribeiro, Iara |
author_role |
author |
author2 |
Ferreira Veronese, Davi Campos Mesquita, Antonio Tadeu Moretti, Fabio José Pereira Ribeiro, Iara |
author2_role |
author author author author |
dc.contributor.author.fl_str_mv |
Bertran, Maria Paula Costa Ferreira Veronese, Davi Campos Mesquita, Antonio Tadeu Moretti, Fabio José Pereira Ribeiro, Iara |
dc.subject.por.fl_str_mv |
credit financing and investment companies non-banking financial institutions banks shareholder profile interest rates. |
topic |
credit financing and investment companies non-banking financial institutions banks shareholder profile interest rates. |
description |
“Finance companies” (technically, credit, financing, and investment companies - SCFIs) coexist with large banks within economic conglomerates. Using historical series of interest rates, we tested the hypothesis that SCFIs belonging to banking groups and other subsidiary institutions (non-major banks) would focus on more vulnerable customers, who would accept to contract credit at higher interest rates than those practiced by large banks of the same group, in the same credit modalities. We conclude that our data capture evidence of the practice of higher interest rates by subsidiaries (SCFIs or subsidiary banks) comparing to the respective main banks, which may reflect the credit specialization in certain niche markets; however, we also find situations in which major banks charge higher interest rates than their subsidiaries. Furthermore, we present the main resolutions of the National Monetary Council (CMN) that regulate SCFIs and highlight the SCFIs' relationships with banks, banking correspondents, and franchises. Finally, we examine the equity profile of SCFIs according to the following categories: (i) financial institutions linked to one of the five major banks; (ii) financials linked to banking conglomerates, except those of the five major banks; (iii) financial institutions linked to non-banking economic groups; (iv) independent financial companies. |
publishDate |
2022 |
dc.date.none.fl_str_mv |
2022-07-02 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Avaliado por Pares; Peer Reviewed Time series comparison |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://portalrevistas.ucb.br/index.php/EALR/article/view/12481 10.31501/ealr.v13i2.12481 |
url |
https://portalrevistas.ucb.br/index.php/EALR/article/view/12481 |
identifier_str_mv |
10.31501/ealr.v13i2.12481 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
https://portalrevistas.ucb.br/index.php/EALR/article/view/12481/11143 |
dc.rights.driver.fl_str_mv |
Copyright (c) 2022 Economic Analysis of Law Review info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
Copyright (c) 2022 Economic Analysis of Law Review |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Universidade Católica de Brasília |
publisher.none.fl_str_mv |
Universidade Católica de Brasília |
dc.source.none.fl_str_mv |
Economic Analysis of Law Review; Vol. 13 No. 2 (2022): Economic Analysis of Law Review; 43-71 Economic Analysis of Law Review ; Vol. 13 Núm. 2 (2022): Economic Analysis of Law Review; 43-71 Economic Analysis of Law Review; v. 13 n. 2 (2022): Economic Analysis of Law Review; 43-71 2178-0587 reponame:Economic Analysis of law Review instname:Universidade Católica de Brasília (UCB) instacron:UCB |
instname_str |
Universidade Católica de Brasília (UCB) |
instacron_str |
UCB |
institution |
UCB |
reponame_str |
Economic Analysis of law Review |
collection |
Economic Analysis of law Review |
repository.name.fl_str_mv |
Economic Analysis of law Review - Universidade Católica de Brasília (UCB) |
repository.mail.fl_str_mv |
editor.ealr@gmail.com||sdi@ucb.br||benjaminm.tabak@gmail.com |
_version_ |
1798675421061971968 |