This paper aims at analyzing the development of the Brazilian banking sector and the recent credit cycle in Brazil, focusing on the role and performance of state-owned- banks, particularly the large federal banks, BNDES, Banco do Brasil and the CEF. This paper stresses mainly the contra-cyclical role of such banks in the credit market in Brazil, as well as their crucial role in the development of long-term financing in the Brazilian economy (investment financing , rural credit and real estate credit). The emphasis of the study is on the post-Real and the recent credit boom, i.e. during the 2003-2009 period.
financial intermediation; stateowned banks; brazilian economy
