Banks in Brazil granted R$5.4 trillion in loans in the first 12 months of pandemic

Borrowing was more attractive during the pandemic. The average bank spread - the difference between the interest the bank pays and the interest it charges - also dropped from 18.5 percentage points to 15.1 percentage points.

RIO DE JANEIRO, BRAZIL - The escalating novel coronavirus pandemic has well-known economic consequences: a drop in economic activity and unemployment.

To avert major shocks, the demand for credit has been high. According to the Brazilian Federation of Banks (FEBRABAN), R$4.5 trillion (US$830 billion) in credit was granted by banks between March last year and this year, an average of R$347 billion a month.

During the crisis period, the demand from companies rose 12.1% compared to the preceding period. However, entrepreneurs continue to seek credit assistance, such as the National Program of Support to Micro . . .

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