The world was left scratching its collective head when Brazilian banking stocks continued to charge up in value even as the overall economic picture in Brazil was not very pretty at all.
Policies put in place by the new government left the country with no economic growth to speak of. Despite this, the banks were as strong as ever. Igor Cornelsen was fortunately around to help explain some of this to us all.
There Are Ten Major Banks In The Country
There are just ten banks to really speak of in Brazil. Some of them are state-owned while others are run as private entities. This is important to note because the fact that there are fewer of them means that they can withstand economic turmoil better than a more fractured system might be able to. Brazil boasts the largest economy in all of South America and the eighth largest in the world overall due in part to the structure of this system.
Joaquim Levy As Finance Minister
Most people in most countries would not know who the finance minister is. Although it is an important government role, many of us do not take the time to get to know such figures. That being said, many are starting to look up the name Joaquim Levy in Brazil as he has taken over the reigns of that job now.
Igor Cornelsen and many others believe that this Finance Minister will return Brazil to more traditional economic policies than what it has had in some time. This is expected to help stabilize things in the country and therefore help out the banking system there as well.
The China Connection
The final thing that Igor Cornelsen would like all of us to stand up and take notice of is the fact that the Brazilian and Chinese economies are so linked. They are major trading partners.
China purchases a lot of raw materials from Brazil, and this means if the Chinese economy is doing well, one might reasonably expect that the Brazilian economy would follow suit in that growth and expansion.
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