World Bank2012-06-112012-06-112007-06-26https://hdl.handle.net/10986/7668Understanding the industry structure of banking services in Brazil is an important task both for the financial community at large and for country specialists. The Brazilian financial system is the largest and most sophisticated in Latin America. This study is organized into five sections after the introduction, in line with the main analytical building blocks, and complemented by appendices that describe methodological aspects in more detail. Section 2 presents some stylized facts on the Brazilian banking system and compares it to a peer group of countries. Section 3 describes and presents the results of the industrial organization perspective (indirect approach). Section 4 presents the methodology and results -- including sensitivity analysis -- of the direct approach. Section 5 identifies and discusses the characteristics and main drivers of revenues, costs and risks by market segment, while Section 6 concludes and presents policy implications.en-USCC BY 3.0 IGOACCESS TO CREDITACCOUNTINGAFFORDABLE ACCESSASSET MANAGEMENTASSET QUALITYASSET RATIOSASSETS RATIOASSETS RATIOSAUCTIONBALANCE SHEETBANK ACCOUNTSBANK ASSETSBANK EQUITYBANK HOLDINGBANK HOLDING COMPANIESBANK INTEREST RATEBANK LENDINGBANK LOANSBANKING ASSETSBANKING INDUSTRYBANKING INSTITUTIONSBANKING MARKETBANKING MARKETSBANKING SECTORBANKING SERVICESBANKING SYSTEMBANKSBARRIERS TO ENTRYBINDING CONSTRAINTBORROWINGBRANCH DENSITYBRANCH NETWORKBRANCH NETWORKSBROKERAGEBUSINESS CYCLECAPITAL ADEQUACYCAPITAL MARKETSCAPITAL REQUIREMENTCAPITAL REQUIREMENTSCAPITALIZATIONCAPTIVE MARKETCAR LOANSCASH MANAGEMENTCENTRAL BANKCHECKSCHIEF FINANCIAL OFFICERSCLEARINGHOUSESCOLLATERALMARKET SHAREMARKET STRUCTUREMATURITIESMATURITYMICRO-ENTERPRISESMINIMUM CAPITAL REQUIREMENTMUNICIPALITIESNEW ENTRANTSNON-PERFORMING LOANSNPLOFFSHORE BANKSOLIGOPOLYOPERATING COSTSOPERATING EXPENSESOPERATING INCOMEOPERATIONAL COSTSOPERATIONAL RISKSOVERHEAD COSTSOWNERSHIP STRUCTURESPAYMENT SYSTEMPAYMENT SYSTEMSPERSONAL LOANSPORTFOLIOPRIVATE BANKPRIVATE BANKSPRIVATE CREDITPRIVATE CREDIT BUREAUSPRODUCTIVITYPROFITABILITYPROFITABILITY MEASURESPROMISSORY NOTESPUBLIC BANKPUBLIC BANKSPUBLIC POLICYREGULATORY FRAMEWORKREPOSRESERVERESERVE REQUIREMENTSRETAIL BANKINGRETAIL BUSINESSRETURNRETURN ON ASSETSRETURNSRISK MANAGEMENTSAVINGSSAVINGS ACCOUNTSSECURITIESSETTLEMENTSHORT MATURITIESSMALL BUSINESSSOLVENCYSTOCK EXCHANGESTOCK MARKETSTOCK MARKET CAPITALIZATIONSTOCKSTAXTAXATIONTERMS OF CREDITTIME DEPOSITSTRADE FINANCETRADINGTRANSACTIONTRANSACTION COSTSTREASURYTREASURY LINEUNIVERSAL BANKUNIVERSAL BANKINGVALUATIONSVARIABLE COSTSWORKING CAPITALWorld Bank10.1596/7668