Delinquency in the Brazilian National Financial System (SFN) rose to 4% in October, according to data released by the Central Bank . The rate, which considers delays of more than 90 days, rose 0.1 percentage points in the month and 0.8 points in 12 months.
According to Central Bank data, this was the highest cumulative increase in a year since the beginning of 2022, when the indicator also recorded a sharp acceleration amid the onset of monetary tightening, when the Selic rate entered double digits.
In previous years, the behaviour was quite different. In 2023, the annual variation in default was moderate, ranging from +0.20 percentage points to +0.30 points, with no month exceeding this level.

In 2024, however, the trend was downward: all annual variations were negative or close to zero, ranging from -0.29 p.p. to -0.22 p.p., ending the year at -0.23 p.p. in December — a period marked by a reduction, rather than an increase, in default rates.

In 2025, however, the numbers continued to rise. In free credit, default remained at 5.3%, but still with a significant increase of 0.9 points in 12 months. Among households, the indicator stands at 6.7%, stable for the month, but 1.3 points above the level recorded in October last year. For businesses, free credit defaults rose to 3.3%.

SFN credit considers the total operations contracted by households and businesses, and the data show that individuals account for most of this debt.

According to the data, in October, balances totalled R$ 4.3 trillion for households, compared to R$ 2.6 trillion for companies, which means that households account for more than 60% of all credit in the financial system, increasing the weight of consumption and domestic financing in the debt structure.

Original Story: CNN Brasil | Author: Cristiane Noberto
Photo: BrunoNeves in FreeImages
Translation and Edition: Prime Yield