Financial Inclusion in Brazil : Building on Success

International Monetary Fund; World Bank

Financial Inclusion in Brazil : Building on Success

Autores

International Monetary Fund

World Bank

Editor

World Bank, Washington, DC

Descripción

The development of a far reaching correspondent banking network is one of the key factors behind Brazil's success story in financial inclusion. Between 2005 and 2011, the number of correspondents approximately doubled to more than 160,000. The Central Bank encouraged financial institutions to reach out to more distant consumers and to communities where they had not previously been active, including lower income areas, through partnerships with a variety of retail establishments including some with public ties such as the post office network and lottery agencies. Regulators have gradually reduced restrictions on correspondent banking, such as individual approval processes, in response to early successes with this program. The legal framework also facilitated healthy expansion by putting the onus on regulated institutions to train and monitor their correspondents. This Technical Note (TN) does not include an analysis of the causes underlying Brazil's continued high credit cost but many of the issues discussed here may be contributing factors. These include the lack of savings and related dependence on credit which may reduce price elasticity in credit markets; information asymmetries which add to the cost of credit evaluation and increase risk for lenders; and competition issues (as with mobile payments and the so-called no-surcharge-rule on payment methods). The Aide Memoire for the FSAP mission provides further discussion of these important issues.

Palabras clave

ACCESS INDICATORS, ACCESS POINTS, ACCESS TO ACCOUNTS, ACCESS TO BANK, ACCESS TO BANK ACCOUNTS, ACCESS TO CAPITAL, ACCESS TO CREDIT, ACCESS TO FINANCE, ACCESS TO INFORMATION, ADULT EDUCATION, AGRICULTURAL CREDIT, ALTERNATIVE SOURCES OF FINANCING, APPROVAL PROCESSES, ATM NETWORK, ATM NETWORKS, AUTO LOANS, AVAILABILITY OF CREDIT, BANK ACCOUNT, BANK ACCOUNTS, BANK BRANCHES, BANK LOAN, BANK SERVICES, BANKING NETWORK, BANKRUPTCIES, BANKS, BENEFICIARIES, BORROWER, BUSINESS DEVELOPMENT, CAPITAL MARKETS, CENTRAL BANK, CHAMBER OF COMMERCE, CHAMBERS OF COMMERCE, COMMERCIAL BANK, COMMERCIAL BANKS, COMMERCIAL CREDIT, COMMUNITY BANK, CONSUMER CONFIDENCE, CONSUMER PROTECTION, CONSUMER PROTECTIONS, COOPERATIVE BANKS, COOPERATIVES, COOPS, COST OF CREDIT, CREDIT ACCESS, CREDIT ANALYSIS, CREDIT BUREAU, CREDIT BUREAUS, CREDIT CARD, CREDIT CARD ACCESS, CREDIT CARDS, CREDIT COOPERATIVES, CREDIT DECISION, CREDIT HISTORIES, CREDIT HISTORY, CREDIT INFORMATION, CREDIT INFORMATION SYSTEM, CREDIT MARKETS, CREDIT PRODUCTS, CREDIT PROGRAMS, CREDIT REGISTRIES, CREDIT REGISTRY, CREDIT REPORTING, CREDIT REPORTING SYSTEM, CREDIT REPORTS, CREDIT RISK, CREDIT SCORES, CREDIT SCORING, CREDIT SCORING MODELS, CREDIT SOURCES, CREDITS, CUSTOMER BASE, DATED CHECKS, DEBIT CARD, DEBT, DEBT PAYMENTS, DEFAULT RISK, DEPOSIT, DEPOSIT ACCOUNTS, DEPOSITS, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DISCLOSURE REQUIREMENTS, DISCOUNT RATE, DISPUTE RESOLUTION, DIVERSIFICATION, ECONOMIC DEVELOPMENT, ELECTRONIC PAYMENT, ELECTRONIC PAYMENT SYSTEMS, ELECTRONIC PAYMENTS, EMERGING ECONOMIES, EMERGING MARKETS, EMPOWERMENT, FARMERS, FINANCIAL ACCESS, FINANCIAL EDUCATION, FINANCIAL FRAUDS, FINANCIAL INNOVATION, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL MARKET, FINANCIAL MARKETS, FINANCIAL PRODUCTS, FINANCIAL PROVIDERS, FINANCIAL REGULATORS, FINANCIAL SECTOR ASSESSMENT, FINANCIAL SERVICES, FINANCIAL SERVICES PROVIDERS, FINANCIAL SHOCK, FINANCIAL STABILITY, FINANCIAL SYSTEM, FINANCIAL SYSTEMS, FISCAL REFORMS, FORMAL CREDIT, FORMAL FINANCE, FORMAL FINANCIAL INSTITUTION, FORMAL FINANCIAL INSTITUTIONS, FORMAL FINANCIAL MARKETS, FORMAL SAVINGS, GENDER, GENDER EQUITY, GENDER GAP, HIGH INTEREST RATES, HOUSEHOLDS, HOUSING FINANCE, INCOME LEVEL, INCOME LEVELS, INDEBTEDNESS, INFORMATION ASYMMETRIES, INFORMATION INFRASTRUCTURE, INSTALLMENT, INSTRUMENT, INSURANCE MARKET, INSURANCE PRODUCTS, INTEREST RATE, INTEREST RATES, INTEREST RATES ON LOANS, INVESTMENT CAPITAL, INVESTMENT VEHICLE, LEGAL FRAMEWORK, LENDER, LENDERS, LEVEL OF DEBT, LEVELS OF CREDIT, LINE OF CREDIT, LIVING STANDARD, LOAN, LOAN AMOUNTS, LOAN PORTFOLIO, LOAN PRODUCTS, LOAN PROGRAM, LOAN SIZE, LOANS FROM FAMILY, LOW COST LOANS, MARKET DISTORTIONS, MARKET REGULATORS, MAXIMUM LOAN AMOUNT, MERCHANT, MERCHANTS, MFI, MFIS, MICRO ENTERPRISES, MICROCREDIT, MICROFINANCE, MICROFINANCE INSTITUTION, MICROFINANCE INSTITUTIONS, MICROFINANCE LOANS, MICROINSURANCE, MONETARY FUND, NET WORTH, NEW BUSINESS, OUTREACH, OUTREACH EFFORTS, OUTSTANDING LOAN, PAYMENT SERVICES, PENSION, PENSION SYSTEM, PENSIONS, PERSONAL FINANCE, PERSONAL SAVINGS, POINT OF SALE, POST OFFICE, POST OFFICE NETWORK, POSTAL BANK, PRIVATE CREDIT, PRIVATE CREDIT BUREAUS, PRIVATE LENDERS, PUBLIC BANK, PUBLIC BANKS, PUBLIC CREDIT, PUBLIC FUNDS, PUBLIC POLICY, PUBLIC REGISTRY, RECESSION, REGULATORY BARRIERS, REGULATORY FRAMEWORK, REPAYMENTS, RESERVE, RESERVE REQUIREMENTS, RISK MANAGEMENT, RURAL CREDIT, SAVINGS, SAVINGS ACCOUNT, SAVINGS ACCOUNTS, SAVINGS INSTRUMENTS, SAVINGS PRODUCTS, SAVINGS RATE, SAVINGS RATES, SECURITIES, SMALL BORROWERS, SMALL BUSINESS, SMALL BUSINESSES, SMALL ENTERPRISES, SMALL LOANS, SOCIAL DEVELOPMENT, SOCIAL SECURITY, SOCIAL WELFARE, SOURCE OF CREDIT, SOURCES OF INCOME, STOCK MARKET, TAX, TRANSPARENCY, UNEMPLOYMENT, UNSECURED CREDIT