Brazilian Banking Basics from Igor Cornelsen

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.

Continues its Next Phase of Growth

Nexbank is continuing its recent pattern of growth and diversification with their recent acquisition of College Savings Bank of Princeton, New Jersey. The purchase adds to their diversified portfolio of products and services. Nexbank adds to their arsenal a niche specialty consisting of 529 plan college savings programs. The college bank will keep its name and become a division of Nexbank.

College Savings Bank has focused on helping parents provide college tuition for their children since it first opened its doors in 1987. It is the program manager for two state-run college savings plans. Both Indiana and Arizona utilize their services.

Nexbank recently completed a capital raise from shareholders of $24 million. It is an indication of ongoing strength in their operations. The money will go to support general corporate purposes. With recent statistics revealing a return on average equity (ROAE) of 37.6 percent, Nexbank continues to pursue growth opportunities. Last year total assets exceeded $3.5 billion and total deposits grew to a total of $2.6 billion. These substantial increases total 61 percent and 49 percent respectively, year over year.

Nexbank is a powerhouse amidst the thriving business culture in Dallas, Tx. They have three core businesses, Commercial Banking, Mortgage Banking and Investment Banking. Nexbank has a charter dating back to 1922.