Digital banks are consolidating and entering new businesses to take on the traditional banks in Latin America’s biggest economy, while also expanding to Europe and the United States
Category: Magazine
Interview: BNP Paribas Brazil bets on ESG
Sustainable finance is gaining in Brazil as more companies improve their environmental, social and corporate governance (ESG) performance, and banks are playing a key role in this transition, says the head of BNP Paribas in that country.
Banks draw on crisis experience to return to growth
After so many crises over the decades, Latin America’s financial institutions knew how to react, and their prudent strategy has paid off with a fast and robust return to growth.
Financing the green transition
Latin America’s banks have the potential to play a crucial role in the fight against climate change. More of them are taking the threat – and the opportunities – seriously. Those that don’t may get left behind.
Banks take on digital competitors
The pandemic has sped up the digitalization of the banking industry. This will be crucial for the growth of traditional banks in a region of internet-savvy consumers and fast-expanding digital-only competitors.
2022 outlook: Loans
Latin America is poised for a rise in loan activity in 2022, as banks dip into the cash reserves they built up during the pandemic. Mexican companies likely will be the busiest borrowers, while Brazil and Colombia could see declines in the run-up to presidential elections.
2022 outlook: M&A
Brazil and Mexico will lead dealmaking in 2022, yet only so much as high inflation and political uncertainty abate investor appetite for acquisitions.
2022 outlook: Equity
Rising global inflation and interest rates has brought a decline in equity issuance in Latin America, while general elections in Brazil are deterring new deals in the region’s busiest market.
2022 outlook: Bonds
Brazil, Chile and Mexico – and sustainable bonds – will lead issuance in the first quarter of 2022, tempered by concerns about rising global interest rates as inflation surges.
