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National Financial System

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Brazil’s financial system is highly diversified currently comprises 1,863 institutions (Dec/2015), including multiple banks (such as Banco Bradesco S.A.), commercial banks, development banks, caixa econômica, investment banks, credit financing and investment entities, securities brokers, exchange brokers, underwriters, commercial leasing entities, building societies, mortgage lenders, savings and loan associations, mortgage lenders, development agencies, credit cooperatives, microcredit lenders and purchasing consortium entities. The Banking Reform Law created the basic institutional structure of the National Financial System, which consists of the following regulatory and oversight bodies:

• National Monetary Council (CMN);
• Central Bank of Brazil;
• Securities and Exchange Commission of Brazil (CVM)
• Superintendence for Private Insurance (SUSEP); and
• Private Pension Department.

The National Monetary Council, the Central Bank and the Securities and Exchange Commission regulate Brazil’s banking sector. The Superintendence for Private Insurance and the Private Pension Department regulate the insurance and private pension plan markets, in accordance with the CMN’s investment regulations. In addition, some Brazilian institutions, such as Banco Bradesco S.A., are members of the National Investment Bank Association (ANBID), a self-regulatory body which regulates the activities of investment banks.

According to the Latin American Federation of Banks (FELABAN), in 2014, 66% of Brazil’s adult population had access to banking services, which means that there is still enormous  growth potential in the country’s banking system. 

In terms of credit, the credit/GDP ratio in Brazil closed at 54.2% in 2015, versus 53.1% in 2014.