Brazil's Major Banks Pull Back From Risky Lending Amid Household Debt Burden

BBD +18.63% BSBR +7.04%

1. 1Brazil's major listed banks are retreating from risky borrowers and unsecured loans, shifting credit toward collateralized products and higher-income borrowers.
2. 2Household debt stands at roughly 50% of disposable income, near record levels, and Santander Brasil (BSBR) has reduced its exposure to borrowers earning under 4,000 reais per month.
3. 3Even with a low unemployment rate, household finances are deteriorating, prompting assessments that banks are bracing for a tougher phase of the credit cycle.

Source Reuters · View original ↗

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