CHARACTERIZATION OF THE NATIONAL BANK: RISKS OF CONCENTRATION

Abstract

Banks, as institutions are key intermediary in the process of economic growth and development. The work of intermediation by banks are reflected in operations to attract deposits in all its forms and placements made to viable major investment projects which, as is known, are activities that generate multiplier effects on the economy, which translates in strengthening the labor market. Financial institutions, not only have specialized in channeling resources to the institutional sectors, but also within its client portfolio are called non-institutional subjects, such as the public, as borrowers are integrated into the financial chain structured by banks. In such operations are consumer loans, personal and mortgage, the latter being an important mechanism to enhance economic activity. According to statistics from the SBS, the national bank is comprised of 17 organizations brokerage, but only four of these, such as BCP, Continental (BBVA), Scotiabank and Interbank, exercise control of 78% of operations, said by the way, are entities that have oligopoly power in this market, a situation that results in a risk scenario for the entire financial system. While banking, despite this weakness has not entered a major crisis scenarios, especially due to the strict control of SBS, but it remains a concern for investors or traders who do not find more alternatives to sue a loan or major credit.