In Brazil, four largest banks hold 78.6% of credit

A document entitled Financial Stability Report, published today (Oct. 17) by the Central Bank, says that Itaú-Unibanco, Bradesco, Banco do Brasil, and Caixa Econômica Federal held 78.65% of all of Brazil's credit operations in June. In the same month last year, the concentration was considerably smaller—76.95%. Late in 2007, the percentage was lower still: 54.67%.

The four institutions are also reported to hold 76.74% of deposits.

In August, the average interest rate on loans for families stood at 62.3% a year. For companies, this rate was 24.4%. Loans with the higher rates for natural persons are overdraft (317.3% a year) and revolving credit for credit cards (an average of 397.4% a year).

Translated by Fabrício Ferreira