NPL&REO News

Brazil is the second largest emerging banking market worldwide

In a table dominated by Chinese banks, and despite economic pressures, Brazil maintains second place in the Global Finance’s top-50 Biggest Emerging Markets Banks ranking, being now the only Latin American country represented in this classification.

In 2019, China is even more dominant in Global Finance’s list of the 50 Largest Emerging Markets Banks, accounting for nearly half: 23 institutions, up from 22 in 2018, with the entry of Guangzhou Rural Commercial Bank. 

The top 14 banks by assets are all Chinese entities, up from 13 last year. With the exception of Export-Import Bank of China, all appear in our Global 50 Biggest Banks list as well. These include state-owned and policy banks, while others are joint-stock commercial banks as well as institutions with rural and city bank classifications. 

The seven South Korean banks in this ranking experienced modest 2% growth from 2018, and their positions were largely unchanged. With the addition of Axis Bank, India now contributes four banks to the ranking. 

Six Brazilian banks make the cut; this group experienced a decline in assets of 10% on average, reflecting slow domestic growth of 1.1% in 2018 and an expected further deterioration of the outlook to 0.8% in 2019, according to the OECD. Contagion from the ongoing economic deterioration in Argentina and Venezuela will continue to put pressure on growth prospects for these institutions.

Brazil is now the only Latin American country represented among the 50 Biggest Emerging Markets Banks. Banesco Banco, a Venezuelan institution, dropped out this year after placing 37th in 2018. To be eligible for inclusion in Global Finance’s rankings, banks—including the largest—must have at least one agency rating.  Because the rating agencies have withdrawn their coverage of Banesco Banco, it was not eligible this year. 

Original Story: Global Finance |David Sanders
Photo: FreeImages / Bruno Neves
Edition: Prime Yield

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