1 / 14

THE BRAZILIAN DOMESTIC (“NATIONAL”) FINANCIAL SYSTEM “ SFN ” – an overview

Federal Constitution sets the rules for operations and regulation of the Brazilian Financial System Specific laws for Banking, Insurance, Capital Markets Major entity of the SFN: - National Monetary Council – “CMN”

karim
Download Presentation

THE BRAZILIAN DOMESTIC (“NATIONAL”) FINANCIAL SYSTEM “ SFN ” – an overview

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Federal Constitution sets the rules for operations and regulation of the Brazilian Financial System Specific laws for Banking, Insurance, Capital Markets Major entity of the SFN: - National Monetary Council – “CMN” - Formulates the policy for Currency and Credit aiming at financial stability and social and economic development. Present composition: Minister of Finance and its chairman Minister of Planning Governor of Central Bank THE BRAZILIAN DOMESTIC (“NATIONAL”) FINANCIAL SYSTEM “SFN” – an overview

  2. Regulators and Supervisors of the SFN (governmental agencies) For the Banking Industry - Central Bank of Brazil For the Capital Markets - Brazilian Securities and Exchange Commission “CVM” For the Insurance Industry - Superintendency of Private Insurance “SUSEP” For the Pension Funds Industry (Institutional Investors) - Superintendency for Complementary Pensions (Private Employee Benefit Programs) “SPC” THE BRAZILIAN DOMESTIC (“NATIONAL”) FINANCIAL SYSTEM “SFN” – an overview

  3. CENTRAL BANK OF BRAZIL - MAIN DUTIES: REGULATION, AUTHORIZATION, SUPERVISION - LENDER OF LAST RESORT - IS CUSTODIAN OF COUNTRY’S INT’L. RESERVES - MANAGES CURRENCY ISSUANCE – LIQUIDITY LEVELS OF THE ECONOMY - SETS OUT THE BASIC INTEREST RATE OF THE ECONOMY – INFLATION CONTROL / TARGET - BOARD NOMINATIONS SUBJECT TO SENATE APPROVAL - NO FIXED TERM OF OFFICE - GOVERNOR: MINISTERIAL STATUS - NO SELF REGULATION IN VIRTUALLY ANY ASPECT OF THE BANKING ACTIVITY THE BRAZILIAN DOMESTIC (“NATIONAL”) FINANCIAL SYSTEM “SFN” – an overview

  4. THE BRAZILIAN SECURITIES COMMISSION: MAIN DUTIES: REGULATION, AUTHORIZATION, SUPERVISION DIFFERENT FROM CENTRAL BANK: MARKET DEVELOPMENT - BOARD NOMINATIONS SUBJECT TO SENATE APPROVAL FIXED TERM OF OFFICE ALLOWS SELF REGULATION THE BRAZILIAN DOMESTIC (“NATIONAL”) FINANCIAL SYSTEM “SFN” – an overview

  5. Credit granted in Brazil totalled 31.6% of GDP in 2005 This volume is very small – for instance, in relation to their respective GDP’s the following are the equivalent volumes of credit granted in some other countries: Chile – 70% South Korea – 93% USA – 146% Portugal – 140% Issues for discussion: - Interest rate x credit demand by the public sector - Interest rate x legal risk - Interest rate x consumer financial ‘capacity’ - Banking industry ‘ concentration’ x market competition THE BRAZILIAN DOMESTIC (“NATIONAL”) FINANCIAL SYSTEM “SFN” – an overview

  6. BRAZILIAN FEDERATION OF BANKS – FEBRABAN and RESEARCH FOUNDATION FIPECAFI ANALYSIS OF THE SPREAD IN THE BRAZILIAN BANKING INDUSTRY AND COMPARISON WITH THE CONSOLIDATED “VALUE ADDED” STATEMENT OF BRAZILIAN BANKS FIPECAFI - FUNDAÇÃO INSTITUTO DE PESQUISAS CONTÁBEIS ATUARIAIS E FINANCEIRAS

  7. SPREADBANKING INDUSTRY 1

  8. SPREAD BANKING INDUSTRY1st Semester 2005 • Research based upon Financial Statements • Sample of 11 Banks: • State owned • Large domestic private banks • Large foreign owned banks • Small domestic private banks • Sample x Industry • 75,8% of Total Assets • 76,4% of Credit outstanding / granted 2

  9. SPREAD of the Banking Industry –our Model 5

  10. MAJOR FINDINGSCorporations (PJ) and Individuals(PF) 6

  11. SPREADSCorporations (PJ) and Individuals (PF) 8

  12. DVA VALUE ADDED ANALYSIS – BRAZILIAN BANKIING INDUSTRY 10

  13. VALUE ADDED STATEMENT “DVA”BRAZIL CONSOLIDATED • All Brazilian Commercial and Universal Banks, Leasing Co’s., Finance Co’s, and Investment Banks • Value added generated by: - Credit Operations - Treasury Operations – Bond Trading - Fees from Services rendered 11

  14. DVA – 1st SEMESTER 2005 12

More Related