In Brazil, recent years have not been smooth for Brazilian banking industry. This can be attributed to hard economic times and many other factors according to Igor Cornelsen.
The investment and banking specialist knows for the banking sector to grow, knowledge of the market is very essential. Policies of Dilma Roussef affected the banking industry negatively and only two private banks; Banco Bradesco and Itau Unibanco made huge profits in 2014.
According to Cornelsen, private banks lend money to worthy clients, and this makes them feel secure in their operations. Therefore, people with undesirable credit history go to public banks for financial help, and they can even forego their investment plans due to lack of funds.
This affects the macroeconomy and the country’s overall development. As a result, Cornelsen believes that Brazilian government should develop market-oriented reforms to encourage bank investments.
Cornelsen came up with basics that are helpful to investors in considering stocks in Brazil. First, Brazil banking industry is mainly made up of ten major banks. As an economic giant in South America, Brazil has critical banks like Itau Unibanco, Banco Bradesco, Banco J Safra, Santander, Caixa Economica Federal and Citibank Brazil are the key players in Brazil banking industry.
Secondly, Cornelsen is confident that with the appointment of Joaquim levy to lead the finance ministry, banks will have something to smile about. Joaquim is highly learned, and he will help reform the banking sector with appropriate policies. Read more: Igor Cornelsen gives you the basics on Brazilian banking
Cornelsen explained that with the good trading relationship of Brazil with China over time Brazilian raw material would have better prices. This as a result of a massive Chinese economy which is also a competitor to Brazil’s industrial products.
Therefore, investors should pay attention to their trading partner; China as this will help focus on the market and give a better understanding of their investments to generate huge profits.
Due to Overvaluation of Brazil currency, Industrialized goods become less competitive in the export market. Therefore, the current administration should intervene and help in the devaluation of the currency slowly.
According to Igor Cornelsen, this will encourage industrial investments and industrial goods will be more competitive in the export market. With Cornelsen experience in the banking and investment sector, these basics are informative and essential to investors.