According to Dima Rousseff’s policy, it is typical for banks to experience turbulence once the economy of a country is troubled. At the end of the year 2014, an unusual thing happened, leaving the World Bank tongue-tied. The 2014 end year for the Brazil economy was shaky.
What mesmerized the World Bank is the fact that two private banks in this country namely Itau Unibanco (ITUB) and Banco Bradesco (BBD) had their share rise by one-third in the year 2014. The profit margin for Itau Unibanco increased to 36 percent in the third quarter as compared to the previous year. For the same period, the substantial profit for Bradesco rose to 28 percent, according to prnewswire.com.
According to a Brazilian banker and an investment expert known as Igor Cornelsen, the two Brazilian banks were able to weather the storm because they had a clear understanding of the market and had observed the market in years that were previously turbulent. Read more: Igor Cornelsen Identifies 5 Ways Businesses Can Organize To Be More Successful
The private banks in Brazil only lend money to those borrowers they consider worthy of credit. It is this approach that has helped this banks streamline their costs, and as a result, the banks get the needed security to look into the future.
According to Igor Cornelsen, people who require other amounts of money may choose to either forego their business plans or borrow from the public sector banks.
With this approach macro-economy as well as the development of the country are challenged. Igor Cornelson recommends the Brazilian government to come up with more market-oriented reforms, to help secure the investors. Learn more about Igor Cornelson: http://www.lulu.com/spotlight/igorcornelsen
Despite Brazil having an uncertain market, it has a lot of natural resources and needs a lot of infrastructural development for the sake of its population. It also is the number one food producer in the world. This fact makes Brazil the most attractive market in South America.
Igor Cornelsen advises individuals to take a look at the basics of the country before investing in it. In the entire South America, Brazil has the largest economy. It is the eighth largest economy in the world. The private banks that reaped profits did not base their activities on rational economics but rather on ideologies.