Entrepreneur

Why Private Banking Is Thriving at The Expense of Government-Owned Banks, Igor Cornelsen

The top secret that will make Brazilian banks stand the test of economic crisis is the knowledge of the market. apparently, brazil is recovering from hard time of recession under the leadership of Dilma Roussef. The government owned commercial banks are hard hit while on the outlier’s private banks seems to be doing well. In 2014 for instance when banks recorded losses, Banco Bradesco and Itau Unibanco, both private bank has 28% and 36% increase in profits respectively.

Igor Cornelsen, a business expert draws a distinction in the operation of banks in the two sectors. Private banks have been able to hedge risk by only allowing only the most credit worthy citizens receive loans. This minimizes the default rate, bad debts, cost and makes the institutions stable financially. However, the public lenders are susceptible to harsh they advance loan even to less desirable credit citizen. Consequently, they suffer from losses operational costs are high. Which makes their market less attractive.

Nevertheless, Brazil is on the road to recovery. Igor Cornelsen identifies various measures that if factored in could revamp the economy. first forward, Brazil has great natural resource deposits and enjoy a relatively good infrastructure. If the economy can be managed by new experts, fiscal reforms and reviews conducted, partner with other nations, have the currently valued well then these challenges can be overcoming eternally.

About Igor Cornelsen

Cornelsen is an investment expert who has an indelible legacy in business management, investment and portfolio and finance acumen. He was born in 1947 in Curitiba and later began schooling. He holds two degrees in Engineering and Economics from the Federal University of Parana. He began practicing economics at an investment back and his skills have only gotten better. He is affiliated with Libra Bank PLC, Multibanco, Standard Chartered Merchant Bank among many other reputable institutions.