Group of the country’s 4 largest banks held 57.9% of total deposits and 55.3% of assets in the year
The group of the 4 largest banks in the country (Bank of Brazil, Box, Itaú It is Bradesco) saw a decrease in the financial system’s share of total deposits in 2023. A report from central bank indicated that these institutions accounted for 57.9% of this indicator that year. In 2022, the proportion was 58.4%.
Only Caixa increased its participation in the financial system per bank when comparing 2022 with 2023. Read below:
- Bank of Brazil – went from 15.7% to 15.5%;
- Itaú – from 15.3% to 15.1%;
- Box – from 12.7% to 13.9%;
- Bradesco – from 14.6% to 13.4%.
TOTAL ASSETS
The concentration of assets for the group 4 largest banks in the financial system also retracted in 2023. It closed the year at 55.3% compared to 56.0% in 2022.
The result was driven especially by data from Bradesco. Here’s what it looked like for each bank:
- Bank of Brazil – remained stable at 14.9%;
- Itaú – from 13.6% to 13.8%;
- Box – from 14.4% to 15.0%;
- Bradesco – from 13.1% to 11.6%.
CREDIT OPERATIONS
In this indicator, the concentration went from 58.6% to 57.8% in 1 year. The subdivision by banks was as follows:
- Bank of Brazil – from 16.1% to 16.4%;
- Itaú – from 11.9% to 11.5%;
- Box – from 19.1% to 19.6%;
- Bradesco – from 11.6% to 10.3%.
According to the Central Bank’s explanation, the reduction in contraction is explained by the increased participation of companies that are not banks in activities such as granting credit. Here’s the complete of the report (PDF – 7 MB).
The president of the monetary authority, Roberto Campos Neto, spoke about the drop in banking concentration. According to him, the results are explained by the greater portability of institutions and the “financial inclusion”.
“We are seeing a decrease in banking concentration, more bank efficiency. Spreads are falling compared to the same interest rates when we look over time. We begin to have more portability and financial inclusion”declared Campos Neto during the event “MKBR”, organized by B3.
The president of the Central Bank declared that, when targeted credit (that which is subsidized and not freely traded on the market) rises a lot, banking concentration rises along with it.
“Less targeted credit, more private credit, more competition and more segmentation is what will lead the system to healthy and inclusive growth”he declared.
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