Impediments to the Development and Efficiency of Financial Intermediation in Brazil
Reforms to improve both the level and the efficiency of financial inter-mediation in Brazil should be high on Brazilian policymakers' agendas, because of the financial sector's importance to economic growth. This means that Brazil must also improve the legal and regulatory environment in w...
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| Format: | Publications & Research |
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World Bank, Washington, DC
2015
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| Online Access: | http://hdl.handle.net/10986/21423 |
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okr-10986-214232021-04-23T14:04:02Z Impediments to the Development and Efficiency of Financial Intermediation in Brazil Beck, Thorsten financial intermediation reform policy economic growth legal & regulatory framework financial institutions secured transactions creditors legal instruments law enforcement accounting standards borrowing policy accounting accounting standards assets balance sheets bank lending banking sector banking system bankruptcy bankruptcy reform banks borrowing central bank compound interest consumer protection contract enforcement credit disputes credit markets credit risk creditors debt demand deposits deposit insurance development banks economic conditions economic growth economic risks economics empirical analysis employment equilibrium exports external financing financial data financial information financial institutions financial intermediaries financial intermediary development financial intermediation financial sector financial transactions foreign banks foreign exchange GDP GDP per capita government expenditures growth rate housing imports income statements income taxes inefficiency inflation inflation rate inflation rates institutional development interest income interest rate interest rates labor force laws legislation lending rates liquidation macroeconomic conditions maturities middle income countries multilateral trade multilateral trade negotiations net interest margin overhead costs private banking private banks productivity profitability real GDP regulatory framework reorganization reserve requirement reserve requirements return on equity securities securitization stock markets tax codes taxation term finance trade flows trade negotiations trade policies transparency value added water supply World Trade Organization Reforms to improve both the level and the efficiency of financial inter-mediation in Brazil should be high on Brazilian policymakers' agendas, because of the financial sector's importance to economic growth. This means that Brazil must also improve the legal and regulatory environment in which its financial institutions operate. Brazil is weak in important components of such creditors, the enforcement of contracts, and the sharing of credit information among intermediaries. Recent reforms, such as the extension of alienacao fiduciaria to housing, the introduction of cedula de credito bancario, the legal separation of principal and interest, and improvements in credit information system, are useful steps in strengthening the framework. But more is needed. Reforms that will significantly increase the level and efficiency of financial inter-mediation, and have a positive impact on economic growth include: 1) A more efficient judicial sector and better enforcement of contracts. 2) Stronger rights for secured and unsecured creditors. 3) Stronger accounting standards and practices, to improve the quality of information available about borrowers. 4) The development of a legal and regulatory framework that facilitates the exchange among financial institutions of both negative and positive information about borrowers. 2015-02-10T20:07:33Z 2015-02-10T20:07:33Z 2000-06 http://hdl.handle.net/10986/21423 en_US Policy Research Working Paper;No. 2382 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Brazil |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
en_US |
| topic |
financial intermediation reform policy economic growth legal & regulatory framework financial institutions secured transactions creditors legal instruments law enforcement accounting standards borrowing policy accounting accounting standards assets balance sheets bank lending banking sector banking system bankruptcy bankruptcy reform banks borrowing central bank compound interest consumer protection contract enforcement credit disputes credit markets credit risk creditors debt demand deposits deposit insurance development banks economic conditions economic growth economic risks economics empirical analysis employment equilibrium exports external financing financial data financial information financial institutions financial intermediaries financial intermediary development financial intermediation financial sector financial transactions foreign banks foreign exchange GDP GDP per capita government expenditures growth rate housing imports income statements income taxes inefficiency inflation inflation rate inflation rates institutional development interest income interest rate interest rates labor force laws legislation lending rates liquidation macroeconomic conditions maturities middle income countries multilateral trade multilateral trade negotiations net interest margin overhead costs private banking private banks productivity profitability real GDP regulatory framework reorganization reserve requirement reserve requirements return on equity securities securitization stock markets tax codes taxation term finance trade flows trade negotiations trade policies transparency value added water supply World Trade Organization |
| spellingShingle |
financial intermediation reform policy economic growth legal & regulatory framework financial institutions secured transactions creditors legal instruments law enforcement accounting standards borrowing policy accounting accounting standards assets balance sheets bank lending banking sector banking system bankruptcy bankruptcy reform banks borrowing central bank compound interest consumer protection contract enforcement credit disputes credit markets credit risk creditors debt demand deposits deposit insurance development banks economic conditions economic growth economic risks economics empirical analysis employment equilibrium exports external financing financial data financial information financial institutions financial intermediaries financial intermediary development financial intermediation financial sector financial transactions foreign banks foreign exchange GDP GDP per capita government expenditures growth rate housing imports income statements income taxes inefficiency inflation inflation rate inflation rates institutional development interest income interest rate interest rates labor force laws legislation lending rates liquidation macroeconomic conditions maturities middle income countries multilateral trade multilateral trade negotiations net interest margin overhead costs private banking private banks productivity profitability real GDP regulatory framework reorganization reserve requirement reserve requirements return on equity securities securitization stock markets tax codes taxation term finance trade flows trade negotiations trade policies transparency value added water supply World Trade Organization Beck, Thorsten Impediments to the Development and Efficiency of Financial Intermediation in Brazil |
| geographic_facet |
Latin America & Caribbean Brazil |
| relation |
Policy Research Working Paper;No. 2382 |
| description |
Reforms to improve both the level and the efficiency of financial inter-mediation in Brazil should be high on Brazilian policymakers' agendas, because of the financial sector's importance to economic growth. This means that Brazil must also improve the legal and regulatory environment in which its financial institutions operate. Brazil is weak in important components of such creditors, the enforcement of contracts, and the sharing of credit information among intermediaries. Recent reforms, such as the extension of alienacao fiduciaria to housing, the introduction of cedula de credito bancario, the legal separation of principal and interest, and improvements in credit information system, are useful steps in strengthening the framework. But more is needed. Reforms that will significantly increase the level and efficiency of financial inter-mediation, and have a positive impact on economic growth include: 1) A more efficient judicial sector and better enforcement of contracts. 2) Stronger rights for secured and unsecured creditors. 3) Stronger accounting standards and practices, to improve the quality of information available about borrowers. 4) The development of a legal and regulatory framework that facilitates the exchange among financial institutions of both negative and positive information about borrowers. |
| format |
Publications & Research |
| author |
Beck, Thorsten |
| author_facet |
Beck, Thorsten |
| author_sort |
Beck, Thorsten |
| title |
Impediments to the Development and Efficiency of Financial Intermediation in Brazil |
| title_short |
Impediments to the Development and Efficiency of Financial Intermediation in Brazil |
| title_full |
Impediments to the Development and Efficiency of Financial Intermediation in Brazil |
| title_fullStr |
Impediments to the Development and Efficiency of Financial Intermediation in Brazil |
| title_full_unstemmed |
Impediments to the Development and Efficiency of Financial Intermediation in Brazil |
| title_sort |
impediments to the development and efficiency of financial intermediation in brazil |
| publisher |
World Bank, Washington, DC |
| publishDate |
2015 |
| url |
http://hdl.handle.net/10986/21423 |
| _version_ |
1764448219025113088 |