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With the banking sectors in two of the four BRIC markets — Brazil and China, facing short and long-term systemic challenges, Indian lenders have held up better than their counterparts, only to falter in the last few weeks.
Brazil’s largest independent investment bank BTG Pactual is set to offer the world’s fourth largest initial public offering for the year 2012 in Brazil this week. The bank is looking to raise around $2 billion in the oversubscribed offering.
Stocks around the emerging world have had a tough week, but the Brazilian financial sector has been lagging the rest of the Bovespa, not to mention banks elsewhere. There’s a good reason for this, and it hasn’t been reported widely.
Brazilian banks are more profitable than Americans for the eighth consecutive year, according to a recent survey from consulting Economatica.
The rating agency Moody’s has put the ratings of the nine biggest banks doing business in Brazil on negative credit outlook.
