Regulation, ownership and corporate governance in Brazilian banks

This chapter gives an overview of corporate governance in Brazilian banks. The authors start by describing the recent history of the country’s financial system, with an emphasis on the macroeconomic reforms of the mid-1990s, which ended the chronic inflation problem that the country had faced for decades, and had major implications for the functioning of the banking system. They then summarize the most important bank and capital markets regulations and describe the ownership structure of Brazilian banks, as well as board composition, and their implications for corporate governance. They conclude by discussing the recent achievements and the challenges that remain for the future in terms of bank corporate governance in the country, such as increasing bank competition and reducing ownership concentration in banks.