It doesn't matter that Brazil's benchmark fascination rates are at ancestral lows, final year's pull by the supervision to expand debt payments for automobile loans brought in a unreasonable of "subprime" borrowers. Now the banks, from Itau Unibanco (ITUB) to Bradesco (BBD) are profitable the cost for miscalculating the safety of the new automobile loans.
The default rate on consumer and corporate loans over 90 days late rose 0.1 commission points to a complete of 6 percent, the Central Bank of Brazil mentioned Tuesday, imprinting the top ever default rate given the bank starting monitoring it in June 2000. While the default rate is not taking flight quickly, it is not descending either, as the Central Bank had hoped to see in their ultimate report.