Credit Evolution in Brazil

The volume of credit in Brazilian financial system totaled R$ 1.71 trillion in the 1Q11, representing a Credit/GDP ratio of 45.2%, and increased to R$ 2.07 trillion in the 1Q12, increasing Credit/GDP ratio to 49.3%, according to the Central Bank of Brazil data.

Source: BACEN

Nonearmarked credit operations reached R$ 1.33 trillion in the 1Q12, which corresponded to 64.1% of the total credit in financial system, increased 15.9% in the past 12 months. In the same period, earmarked credit was up 22.0%, reaching R$ 0.74 trillion and increasing its share in total credit to 35.9% (34.% in the 1Q11).

The corporate credit totaled R$ 1.1 trillion in the 1Q12, representing 53.1% of credit in Brazilian financial system, with an increase in volume of 18.0% in the past 12 months.


BACEN – Economic and financial notes to the press – Table XXVIII

Credit to individuals accounted for 46.9% of total credit in the financial system in the 1Q12 (46.0% in 1Q11), reaching R$ 0.97 trillion, for a growth of 20.0% in the past 12 months. Earmarked credit also stands out in loans to individuals, which increased 32.2% in the past 12 months, mainly related to housing loans.

The default rate in corporate loans, which peaked at 4% in September 2009, slightly retreated from November of that year stabilizing at around 3.6% from March 2010, reaching 3.5% in the end of the year. However, in 2011, default ratios retook the ascending curve, reaching 3.9% in November 2011 and 4.1% in March 2012. It is worth noting that this rate relates to the bulk of corporate credit including small and medium sized companies as well as large corporations.

Source: BACEN

Last Update: May 4, 2012.

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