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Throughout the year, we have used this space to discuss credit market issues. We try to look at the current situation and the main trends, based on the understanding that an adequate regulatory and legal environment can boost economic growth.

In the analysis of credit, reflecting on cultural aspects, we highlight the the importance of parcels in the Brazilian context. This led us to think about the use of traditional credit. In those parts of society with greater access to banking products and services, credit has fallen into disuse, but it still plays an important role in local communities and in the lives of the “unbanked”.

We also talk about the relevance and dimension of bank credit, This ratio is based on the balance of loans and financing as a proportion of GDP. According to Central Bank data from October 2021, this ratio stood at 53.2%, well above the level seen two decades ago, and still below what is observed in other countries.

The supply of credit below potential opens up a bottleneck in the provision of resources to micro and small companies. This was another theme of the credit market diagnosis, and which has been highlighted in various parts of the world. Access to investment and working capital resources is essential for these companies to grow, innovate, increase their productivity and create jobs.

The discussion also included the cost of credit. The reasons for the country's high banking spread have long been discussed. Among the ways to reduce the cost of credit, we highlight macroeconomic stability, legal certainty, the improvement of credit assessment systems, already underway with the Positive Registry, and the strengthening of credit guarantee mechanisms.

We also address the role of regional credit as a driving force for local economic development, and credit unions as a vector for competition and the provision of credit in places less served by traditional banks.

The picture would be incomplete without mentioning the transformations induced by technological advances in finance. Increasing digitalization is another competitive factor. More than ever, there are a multitude of solutions in the palm of our hands: we can buy, sell, pay and compare prices in just a few taps. And that's just the beginning.

Digitalization, combined with the interest in and dissemination of financial education, is bringing us to a new moment in the credit market. Equipped with the latest information technology tools, the she credit bureau industry makes efforts and investments to add more and more value to credit analysis processes and debt recovery, making them more effective.

In 2021, we recorded some achievements in this space. This was the case with the release of the first impact studies on the Positive Register. According to a study by the Central Bank, As a result, consumers with a history of positive information were able to take out credit paying a lower spread than the group of other consumers, confirming the expectations of the credit bureaus.

Another noteworthy moment was the inclusion of payment information for services of telecommunications in the Cadastro Positivo database. This second wave of information sheds light on consumers who, on the margins of the banking system, have limited credit history. It is also worth remembering the approval of the Over-indebtedness Bill, to which the sector has actively contributed.

Finally, we would like to highlight the relationship between credit and society's well-being, We also show how this instrument can improve people's lives by making it possible to transfer income over time. We also draw attention to attention to the conscious use of credit, in order to avoid imbalances in personal accounts.

In 2022, we will continue to focus on the topic of credit and we hope that the healthy exchange of ideas will continue in this space and in other formats such as live streams, face-to-face events, specialized media and wherever else there is interest.

Without a doubt, credit is an essential tool for economic recovery from the crisis and for building a prosperous future.

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By: Elias Sfeir President of ANBC & Member of the Climate Council of the City of São Paulo & Certified Advisor