Um estudo sobre a concentração da indústria bancária no Brasil

Abstract

The Brazilian banking system is among the most developed and most concentrated in the world. After some consolidation in the segment, the largest banks in the country achieved a relevant position in the economy, being among the companies with the highest market value. The recurrence of high rates of return on equity presented in the balance sheets of the largest institutions and high interest rates practiced by the market raises questions about the influence of the concentration level on prices. Academic literature, including studies by the Central Bank itself, finds no causal relationship between concentration and bank spreads. This study analyzes the banking segment in Brazil, from 2002 to 2017, and calculates an indicator of competition in the sector, measured by the Lerner index, based on the results of a three-stage regression model. The evolution of the index is observed, showing a difference in the behavior of public and private banks, highlighting the periods 2002-2007, before the 2008 Crisis; 2009-2014, period after Crisis 2008 and, finally, the period 2015-2017, when assessing the effects of the economic recession period in Brazil. There is an increase in the concentration of assets in the five largest banks, exercise of market power of public and private banks. The concentration level measured by the Herfindahl-Hirschman index presents a result that fits the segment as poorly concentrated by asset criteria and moderately concentrated by loan volume. It is concluded that banks operate in monopolistic competition, where there is competition with product differentiation and the exercise of certain market power.