Brazil : Interest Rates and Intermediation Spreads
This study sheds light on the analytical and policy issues regarding the high intermediation spread in Brazil, focusing on its determinants, the reasons for its persistence, and its impact on the real economy, especially on access to finance for Br...
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| Format: | Economic & Sector Work |
| Language: | English en_US |
| Published: |
Washington, DC
2015
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| Online Access: | http://documents.worldbank.org/curated/en/2006/07/7533006/brazil-interest-rates-intermediation-spreads http://hdl.handle.net/10986/21461 |
| Summary: | This study sheds light on the analytical
and policy issues regarding the high intermediation spread
in Brazil, focusing on its determinants, the reasons for its
persistence, and its impact on the real economy, especially
on access to finance for Brazilian firms. The key contention
of the analysis is that high intermediation spreads are a
symptom of underlying problems; as such, spreads constitute
a window that, when open appropriately and under the right
analytical light, can unveil deeper issues concerning the
Brazilian financial system, its functioning, and its
linkages to economic performance. The study's major
contribution is to investigate the level of intermediation
spreads in Brazil from macro, micro, and international
perspectives. In particular, the international perspective
compares the Brazilian financial system with industrialized
countries and Latin American peers to provide a background
for the analysis, and highlight the areas where Brazil
appears to be special. |
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