Central Bank of Brazil Bank Lending m/m

Loan operations refer to capital loans or financing of customers’ purchases by financial institutions. Credit operations have interest rates and fees which are used according to the type of credit. Financial institutions make such credits available to customers according to their own rules. The main credit operations are loans to individuals, corporate loans, overdrafts, payroll loans, sundry loans, revolving credit cards and other credits.

The National Financial System (SFN) is the set of entities and institutions that perform the financial intermediation, that is, intermediation between lenders and borrowers of money. It is through this set of entities and institutions that civil society, private companies, and the government circulate most of their assets, pay their debts and realize their investments.

Composition of the National Financial System (SFN):

• Normative Bodies: CMN — National Monetary Council, CNSP — National Council for Private Insurance, CNPC — National Council for Complementary Pension.
• Supervisors: BCB — Central Bank of Brazil, CVM — Securities and Exchange Commission, Susep — Private Insurance Superintendence, Previc — National Complementary Pension Superintendency.
• Operators: banks, consortium administrators, stock exchange, credit cooperatives, brokers and distributors, commodities and futures exchange, payment institutions, insurance companies and reinsurers, pension funds, private pension entities and capitalization companies.

The SFN is managed by the National Monetary Council (CMN), responsible for Brazil's economic policy, that is, responsible for the country's macroeconomic coordination.

The Central Bank of Brazil (BCB) has the authority to ensure compliance with the CMN rules by monitoring and supervising the financial system, executing monetary, exchange and credit policies. BCB publishes monthly reports on Monetary and Credit Statistics, with the movement of the national market and Credit Operations.

Loans and spending are closely related to consumer confidence. A reading of this index above the expected value can be considered positive/high for the Brazilian real.