Brazil Banking on a New Opportunity

Business grows when opportunities for lower-performing or less viable opportunities open up.  In the case of investment banking, Latin America is ripe for Brazil–even as its economy is only slowly recovering from what calls a potential “lost decade.”

Roberto Sallouti, chief operating officer of BTG Pactual, said the current trend was similar to what happened during the 2008-9 financial crisis, when many global banks pulled back from Latin America and left space for local firms to grow.

“The other guys are still there,” Mr. Sallouti said, “but we are eating into their market share.”

While the Latin American economies are not as robust as they once were, the region generated over $1.6 billion in investment banking fees last year, according to Freeman Consulting Services, an investment banking advisory firm based in New York.

via In Latin America, Brazilian Banks Fill Void Left by Global Giants –


2 thoughts on “Brazil Banking on a New Opportunity”

  1. In my mind, trends like this are a good thing. I think the world could benefit from a few more locally-owned businesses that give back to the manageable areas in which they are based. When a business is rooted in Brazil, it knows what Brazil wants and what Brazil needs, just like businesses rooted in Provo know what Provo wants and what Provo needs. Globalized companies without a specified base of clientele are often out of touch with the human element that helps organizations become the best that they can be. I say we should encourage the breakdown of massive, globalized corporations that operate on a pyramid pattern of profit and streamlined services. Perhaps it will help distribute wealth a little more evenly across the globe and reinforce the humanity we are losing in our increasingly technological world.

  2. Investment banking is an area of business that still needs to be a lot more explored in Brazil. In emerging economies it is important to build a support system for companies that are looking for capital to grow. The marketplace in Brazil is expanding and there is that need for more money to be injected in the economy by private investors. Investment banking companies around the world have historically focused on impact investment in Latin America, but now it is time for them to focus on growing businesses that can come to be large multinational corporations one day. The local government has tried to boost the Brazilian economy with incentives, but it isn’t enough to keep up with the growth of the private sector. I think that as more privately owned investment banks invest in Brazil, the economy will start growing at a rate that is more similar to what it was before the 2008 crisis.

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