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Retail banking in Brazil: Coronavirus (COVID-19) Sector Impact

Published by GlobalData Product code 940476
Published Content info 18 Pages
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Retail banking in Brazil: Coronavirus (COVID-19) Sector Impact
Published: May 22, 2020 Content info: 18 Pages
Description

The Coronavirus (SARS-CoV-2) outbreak, dubbed COVID-19, is first and foremost a human tragedy, affecting millions of people globally. The contagious Coronavirus, which broke out at the close of 2019, has led to a medical emergency across the world, with the World Health Organization officially declaring the novel Coronavirus a pandemic on March 11, 2020.

Fears surrounding the impact of COVID-19 have already significantly impacted the global economy, with key markets across the world losing 20-50% of their value for the year to date. Many economists and institutions have cut their forecasts, with consensus global GDP growth currently at 2.6% for 2020, and many experts predicting the potential onset of recessionary environments.

The IMF anticipates a 6.1% decline in Brazil's GDP in 2020, while unemployment will rise to 14.1%. This will impact the country's banking industry.

This report focuses on the impact of the Coronavirus outbreak on the economy and the retail banking industry in Brazil. Based on our proprietary datasets, the snap shot provides a detailed comparison between pre-COVID-19 forecasts and revised forecasts of total mortgage, consumer, credit card loan balances as well as deposit balances in terms of value and growth rates. It also offers information on measures taken by the government to combat Coronavirus.

Scope

  • The Brazilian economy was already in a weak position before the outbreak of the pandemic, as it was still recovering from the 2015-16 recession.
  • Given COVID-19-related uncertainty and the impact of the ongoing lockdown, the effect on household spending and the wider economy will be significant.
  • Brazilian government guarantees to SMEs and corporates will support borrowers' viability and hence banks' asset quality. However, earnings challenges will still intensify for banks due to weaker business volumes and rising loan impairment charges.
  • For banks, the severity of losses will depend greatly on whether government measures are able to preserve businesses threatened with bankruptcy and help people re-enter the workforce.

Reasons to Buy

  • Make strategic decisions using top-level revised forecast data on the Brazilian retail lending and deposit industry.
  • Understand the key market trends, challenges, and opportunities in the Brazilian retail lending and deposit industry.
  • Receive a comprehensive insight into the total consumer loans in Brazil, including mortgages, personal and credit card loans as well as retail deposits balances.
Table of Contents
Product Code: GDFS0415CI

Table of Contents

  • COVID-19 Update
  • Impact Assessment
  • Retail Deposits
  • Total Consumer Loans
  • Mortgage Loans
  • Credit Card Loans
  • Other Consumer Loans
  • Job Analysis

Appendix

  • Supplementary Data
  • Definitions
  • Methodology
  • About GlobalData
  • Contacts
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