BRAZIL: Banks pile into payroll lending

Overview

As Brazil’s economy bounces back, local banks are again jostling for market share in the fast-growing consumer credit segment. The early August auction to disburse pensions held by Brazil’s National Institute of Social Security saw keen interest from both public and private banks. We believe consumer lending growth is sustainable on a medium-term view because of solid fundamentals, including declining unemployment, rising real incomes and the still low debt profile of Brazilian...