Brazil Credit Origination and Household Indebtedness

Brazilian credit origination saw minimal real-term growth in May, while household indebtedness reached near-record levels. Lending rates remain high and NPLs have increased, presenting a challenging environment despite government lending initiatives.

Key Takeaways

• 1.Credit origination in Brazil remains stagnant, growing only 0.1% month-over-month in May.
• 2.Household indebtedness is at a near-record high of 49.8% of disposable income, with high debt service costs.
• 3.Non-performing loans (NPLs) for both corporates and households have risen.

Table of Contents

• Brazil: Flattish Credit Origination in May; Accelerating Directed/Earmarked Credit; High Household Indebtedness (Ramos)
• DETAILS
• Disclosure Appendix

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