Brazil’s top private banker denies any risk of a credit bubble in the country

Wednesday, February 23rd 2011 - 06:33 UTC

Full article 2 comments

The president of Brazil’s private bank Itau brushed aside risks of a credit bubble in the country and underlined that sustained economic growth will be rewarded by an expansion of between 15% and 20% in its credit portfolios in 2011. Read full article

Comments

Disclaimer & comment rules

Jefferson Michaelis
Itau Unibanco Holding SA, posted days ago a fourth-quarter net profit of 3.89 billion Brazilian reais ($2.33 billion), up from BRL3.2 billion in the year ago period, as its credit portfolio continues to expand. The bottom line is that they are extending (giving away) credit to everybody outthere...some banks in Brazil are charging interest rates around 1.68 to 3.5 per month!
Feb 24th, 2011 - 01:49 pm - Link - Report abuse 0
-+
Forgetit87
AFAIK, high interest rates and bank profits don't indicate a bubble risk, quite the contrary. It is when banks take risks and lose too much money that there's a danger that a bubble will burst.

J. Michaelis, are you the Commerce and Industry Chamber guy?
Feb 24th, 2011 - 03:17 pm - Link - Report abuse 0
-+

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!