Brazil’s financial model has been labelled a “good example of bank regulation”.
Brazil’s strict banking rules are being looked on as a good example, as the G20 prepare for a meeting which will aim to minimise the risk of future financial crises.
G20 leaders will meet in Pittsburgh on September 24th to 25th as they look to back up their call to toughen regulation on key financial institutions. The group was set up in 1999 to promote discussion between emerging-market countries, such as Brazil, on issues related to global economic stability.
Brazil managed to come through the recession without major bankruptcies or nationalisations, unlike in the UK, which has helped to make it a good prospect for people wanting to buy Brazilian real estate.
Reuters reports that Ceres Lisboa, a senior banking analyst at credit ratings agency Moody’s Investors Service, in Sao Paulo, said: "Brazilian banks are coming out well because of the strong regulation in the financial system, which avoided a liquidity crisis in local markets and solvency problems. Brazil can serve as an example of bank regulation."
