Brazil: Banking
Key Facts
—Claim. Banco do Brasil’s chief executive says some large farm borrowers chose not to pay or renegotiate.
—Profit. Adjusted third-quarter profit fell 66.5% to R$1.27 billion (about US$0.22 billion).
—Overdue loans. Loans overdue 90 days or more reached 6.08% of the bank’s book, up from 4.51%.
—Pushback. Aprosoja Brasil, an association of soy and corn growers, criticised the remarks.
—As of. Friday 13 November 2026. Exchange rate: R$5.67 per US$1.
Brazil’s biggest farm lender says some of its largest borrowers are holding back payments on purpose, a charge the farm lobby rejects.
What the Bank Said
Banco do Brasil (BB), the state-controlled bank with the farm loan book described below, reported its third-quarter results on Wednesday 11 November 2026. Its chief executive, Tarciana Medeiros, told investors on Thursday 12 November that part of its medium and large farm borrowers had refused to pay or to renegotiate.
She called it “moral hazard,” meaning a bet that a later government rescue will make non-payment cheap. She said the bank had not expected the problem to last, and that the arrears are concentrated in the Centre-West, Brazil’s main grain region.
What the Numbers Show
BB’s results summary of 11 November reports adjusted net profit of R$1.27 billion (about US$0.22 billion), down 66.5% from R$3.79 billion (about US$0.67 billion) a year earlier. The cost of credit, the money set aside for loans that may not be repaid, reached R$21.2 billion (about US$3.7 billion) in the quarter.
Loans overdue by 90 days or more stood at 6.08% of the bank’s portfolio at the end of September 2026, against 4.51% a year earlier, the summary says. BB’s agribusiness book was R$403.6 billion (about US$71.2 billion), down 4.3% from June and up 1.2% from a year earlier.
Loans overdue 90 days or more: 6.08% of BB’s book in September 2026, against 4.51% a year earlier. Banco do Brasil results summary, 11 November 2026.
Why It Matters
BB is a state lender to Brazilian agriculture, so its overdue loans are a direct reading of stress on farms that export soy, corn and beef to world markets. Its farm book of R$403.6 billion (about US$71.2 billion), reported on 11 November, is the base on which that stress is measured.
The question for readers is whether the arrears reflect crop losses and high interest rates or a deliberate wait for relief. The bank’s own figures show higher overdue loans but do not say which borrowers chose not to pay.
What Farm Groups Say
Aprosoja Brasil, an association of soy and corn growers, criticised the remarks and said that debt problems in the sector need solutions rather than accusations. Brazil’s Congress has meanwhile sent President Luiz Inácio Lula da Silva a farm debt relief bill that the Senate approved on Wednesday 11 November 2026.
Our earlier report on that debt relief bill explains its terms, and our report on BB’s results covers the share price reaction. The bill is a separate matter from the bank’s claim about moral hazard.
In Plain English
—Adjusted profit. Profit with one-off items removed, as the bank reports it.
—Moral hazard. Not paying a debt in the hope that a later rescue will cancel the cost.
—Overdue 90 days or more. Loans on which a payment is at least three months late.
—Centre-West. Brazil’s main grain-growing region, west of São Paulo.
What To Watch Next
Brazil’s constitution gives the president 15 working days after receiving a bill to sign or veto it, and the date on which the debt relief bill reached Lula has not been published. The bank has not said when it will publish its next set of results.
What Is Not Known
BB’s summary does not break down which borrowers are overdue or why, and the bank has not named any borrower. The size of any relief package and its cost to the public purse are also unconfirmed.
What It Means for You
For a US reader, the story is a credit signal from the lender at the centre of Brazil’s farm economy, a major supplier of soy and beef. It does not by itself show how crops or export volumes will move.
Farmers who repay on time are affected if the bank tightens lending in response, and taxpayers are affected if relief is granted. Neither outcome has been decided.
See also: our brazil population ethnic groups explained guide.
More: Brazil news, every day from The Rio Times.
Frequently Asked Questions
What did Banco do Brasil say about farm borrowers?
Chief executive Tarciana Medeiros said some medium and large farm borrowers refused to pay or renegotiate. She called it moral hazard.
How much of the bank’s loan book is overdue?
Loans overdue by 90 days or more were 6.08% of BB’s book in September 2026, against 4.51% a year earlier. That is the bank’s figure for the whole portfolio, not only farm loans.
Did farm groups respond?
Yes. Aprosoja Brasil, an association of soy and corn growers, criticised the remarks and called for solutions to farm debt.
Is a farm debt relief law coming?
The Senate approved a farm debt relief bill on 11 November 2026 and it now goes to President Lula. He has not announced whether he will sign it.
Sources: Banco do Brasil, results summary for the third quarter of 2026 (11 November 2026, ri.bb.com.br); Federal Senate, news service, vote of 11 November 2026 (senado.leg.br); Brazilian Constitution, article 66.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error
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