Brazil has one of the highest banking concentration rates in the world. According to the Bank Economics Report of 2017, published by the Central Bank of Brazil (BCB), the five largest Brazilian banks account for 82% of the country's financial market assets. In 2006, this rate was 60%. It is what says the memo Revolução Bancária (Banking Revolution) written by Diego Gazotto December.
The Central Bank of Brazil pointed out in its Banking Economy Report that the banking concentration in the country had a slight decline in 2018, with the five largest institutions (Banco do Brasil, Itaú, Bradesco, Caixa Econômica and Santander) holding 81.2% of the assets total of the commercial banking segment, compared to 82.6% in 2017. The report also points out that this group accounted for 84.8% of credit operations in the segment, against 85.8% last year. In relation to total deposits, the fall from 85% in 2017 to 83.8% in 2018. Although all numbers have decreased, these levels of concentration are still very high.
Information from the Central Bank of Brazil also shows that, in March 2019 (last available data), interest on overdraft and credit card rose again. In the case of an overdraft, the rate was 317.9% per year in February, to 322.7% per year in March. Credit card interest rates went from 295.5% per year in February to 299.5% per year in March. They are unacceptable rates.
According to the economist Maurício Gutemberg, "Nowhere in Latin America is there an interest rate charged by credit card companies such as the Brazilian one. We can not call it interest rates here. In fact, they are rates comparable only to moneylenders but charged by banks and financial companies regulated by the Central Bank of Brazil. "
