Basel Rules in Brazil: What are the Implications for Development Finance?

Ricardo Gottschalk and Cecilia Azevedo Sodré

Chapter 3 in The Basel Capital Accords in Developing Countries, 2010, pp 34-50 from Palgrave Macmillan

Abstract: Abstract The main findings from the previous chapter — that adoption of Basel I in Brazil in the mid-1990s contributed in the following ten years to a fall in the share of banks’ credit assets in their total assets, and to a declining trend in total credit as a proportion of the country’s GDP — are worrisome trends, given that in Brazil total credit as a proportion of GDP is fairly low compared to other countries at similar stages of economic development. The adoption of Basel I in Brazil has probably also contributed to a higher degree of banking concentration. This fact can have negative implications for the provision of credit to the SMEs, as the large banks in Brazil have little incentive to cater for this segment of the market.

Keywords: Credit Risk; Internal Model; Operational Risk; Capital Requirement; Private Bank (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-27609-3_3

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DOI: 10.1057/9780230276093_3

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