Why is Brazil is considered a conducive country for business operations? The main reason is, Brazil has a huge population and a large supply of natural resources that create the need for infrastructure development.
In 2014 the economy of Brazil was hurting. Economic growth had stalled under the then government of Dilma Rousseff. Learn more about Igor Cornelsen: https://about.me/igorcornelsen1 and http://www.lulu.com/spotlight/igorcornelsen
However what was surprising is that the banking sector weathered the economic crisis storm with ease. Two major private banks, Banco Bradesco (BBD) and Itau Unibanco (ITUB) saw their shares rise by a third that year. This was not anticipated since the banking sector is usually the first to be hit whenever a country plunges into economic crisis.
So, what did the Brazilian banks do differently? To help us explain this, we will consider an explanation given by a renowned investment expert Igor Cornelsen, who has a long experience in the Brazilian banking sector.
Igor Cornelsen states one very important point. He says that most private banks only lend money to credit worthy persons. This means that only entities that have the capacity to pay back loans are likely to enjoy their services.
This gives this banks some sort of financial security. They are less likely to plunge into bad debts. Igor takes time to explain some important aspects of banking in Brazil for any investor looking to invest in Brazil. Let us highlight some of them.
Brazil being one of the largest economies in the world have a well-advanced banking sector. There are about 10 major banks in Brazil, both privately and state owned. He says that for his banking sector to flourish even better, there need to be insightful policies being put up by the government of the day. Learn more about Igor Cornelsen: http://igorcornelsen.tumblr.com/
He attributes the 2014 economic crisis to the poor policy decision by the then mister for finance. Igor also insists on the government investing more in creating trade partnership with China. As of today, China is one of the biggest consumers of Brazilian materials. It, therefore, means if the economy of China is doing well, there will be better prices for Brazilian raw materials.
Igor Cornelsen is an investment banker in Brazil. He has worked for some of the biggest banks in the world in executive positions. He is retired from active trading and serves as a consultant on stock market investments.