Performance of the largest brazilian banks: a study on the impact of the subprime crisis

• Autor(a) principal: Coeli, Cristiana Maria
• Data de Publicação: 2022
• Outros Autores: Martins Pires, Vanessa
• Tipo de documento: Artigo
• Idioma: por
• Título da fonte: Revista Ambiente Contábil
• Texto Completo: https://periodicos.ufrn.br/ambiente/article/view/22176
• topic: Performance; Banks; Subprime Crisis.; Performance; Bancos; Crisis subprime.; Desempenho; Bancos; Crise Subprime.; Desempenho; Bancos; Crise Subprime

Purpose: To analyze the impact of the subprime crisis on the performance of the largest Brazilian banks, using accounting indicators that allow measuring the behavior of default rates, the evolution of expenses with the Bad Debit Provision (BDP), the volume of total assets and the rates of profitability. Methodology: Information from the five largest banks established in Brazil (Banco do Brasil, Caixa Econômica Federal, Itaú Unibanco, Bradesco and Santander), in the period between 2008 and 2016, was collected and analyzed. Data were obtained through consultations on the BCB website and on the banks' websites. The results obtained were summarized in graphs and tables. Results: The performance of banks was affected by the increase in the volume of BDP expenses in the period, as a result of a conservative strategy adopted by the institutions. An increase in the volume of defaults was identified, but banks were cautious keeping BDP levels at volumes compatible with the growth in credit concessions. All banks showed an increase in the value of their total assets. In terms of profitability, the institutions had different performances. The significant amounts of profits earned by Banco Bradesco and Itaú Unibanco in 2015 are noteworthy. Contributions of the Study: The implementation of an expansionist monetary policy positively influenced the performance of banks, especially in institutions with state control. The research shows that the subprime crisis affected the performance of banks, as a consequence of the conservative actions adopted, in order to protect the National Financial System. The research contributes to the literature, firstly, by presenting empirical data on the effects of the subprime crisis on the main Brazilian banking institutions, and also by discussing the results in light of the theory and economic situation of the period, allowing different interpretations of the impact of this phenomenon.