Progress brings challenges; the solution is to implement measures that promote financial discipline and education on the responsible use of credit
Credit is expanding at a rapid pace in the northern region of Brazil, reflecting the local economic dynamism. Data from the Central Bank's Economic Activity Index (IBC-R) reveals that the region's economy grew by 4.8% in 2024, surpassing the national average of 3.8%. This progress boosted demand for credit, especially among companies.
According to the National Association of Credit Bureaus (ANBC), credit extended to companies reached R$6.6 trillion (56.0% of GDP), with an expansion of 18.7% in the year. Expanded credit to households reached R$4.2 trillion (35.5% of GDP) in 2024, an expansion of 10.6%, reflecting the 12.1% increase in the SFN's loan portfolio.
“The accelerated growth in the northern region reflects an increase in business confidence and a favorable environment for business expansion. This scenario results in a greater search for financing,” says Elias Sfeir, president of ANBC.
According to the executive, regions with less historical access to the banking system tend to show more expressive growth when financial services become more accessible. However, the level of default in the region has been the highest in the country. Average of 50% for Individuals and 40% for Companies.
“Knowing the context of the region is essential, because progress also brings challenges and makes it essential to implement measures that promote financial discipline and education on the sustainable use of credit,” explains Sfeir.
The next step, therefore, is to balance growth and financial sustainability. Increased access to credit needs to be accompanied by effective strategies to avoid excessive indebtedness and ensure that the economic development of the northern region continues in a healthy and sustainable way in the coming years.
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