Caixa, BB and the BNDES - An analysis of balance sheet evolution

Abstract

The purpose of this article is to evaluate the strategies of Caixa Econômica Federal, Banco do Brasil and the BNDES, by analyzing the development of their equity positions, between 2000 and 2015. The article uses data collected by the Brazilian Central Bank- in particular the series of Balancetes, which are more detailed than those usually discussed in studies on the subject - as well as in their respective management reports. It is believed that the analysis of the equity positions of these three institutions, in greater detail, contributes to clarifying their different performance patterns. The article is organized into four sections, in addition to the introduction and conclusion. In the first section, we discuss the dynamics of credit operations of federal State-owned banks, identifying distinct phases and highlighting their countercyclical role in the heyday of the international financial crisis. In the following sections, the active and passive positions of the three institutions are analyzed individually. Focus is given to the strategies for asset allocation and performance in the various credit market niches, as well as the sources of funding, mainly public, used to support the expansion observed in their credit operations. The study identifies the centrality of the diversification strategies of the three institutions in the credit market. They have remained secure in their respective niches, accompanied by diversification in the origins of their funding.

Keywords:
Caixa Econômica Federal; Banco do Brasil; BNDES; State-owned Banks; Development banks