THE BRAZILIAN FINANCIAL SYSTEM: STRUCTURE, REFORMS AND THE ROLE OF STATE

Abstract

In this paper, we present the evolution and performance of the Brazilian state-owned banks – commercial and development ones – and cooperatives. That institutions represent a heterogeneous system that we have named “national system of development financing institutions” (NSDFI). We argue that, despite the neoliberal reforms implemented during the 1990s and early 2000s, aimed at a reduction of the presence of the State in financial intermediation, Brazil still has an important share of its financial system under the umbrella of the NSDFI. Moreover, we suggest that this system has been recovering its vitality since the 2007-2008 global financial crisis and the subsequent great recession. We have also suggested some institutional reforms in the NSDFI in order to strength its capacity to support the economic development in contemporary Brazil.