Brasília – Banks have proper means to endure shock effects of adverse scenarios such as abrupt changes in interest, foreign exchange and delinquency rates, or in the prices of real estate, concludes the Financial Stability Report released this Thursday (1st) by the Brazilian Central Bank (BC).
In June 2015, the Basel Index of banks in Brazil went to 16.3%, a decline of 0.4 percentage point. This percentage reveals the ability of banks to loan, taking into account their own resources and consideration of the risk of loss. The index is an international concept defined by the Basel Committee. In Brazil, the minimum index is 11%, that is, for every R$ 100 (US$ 24.97) loaned, banks must have R$ 11 (US$ 2.74) in capital. The Basel Committee sets the minimum percentage at 8%.
“The main risk factors that can impact even more the credit market and the delinquency rate are associated with the effects of a potential and even larger deterioration of the local and external economic environment, generating additional pressures over jobs, families’ income and companies’ costs and revenues”, adds BC in the report.
*Translated by Sérgio Kakitani
