With all these movements, sector banking Brazilian headed toward greater targeted concentration to generate a greater efficiency of the system and a higher level of competition that enhance the growth of the level of financial intermediation, which is still at a very low level (credit to the private sector is in the order of 30% on GDP), for a country that seeks to be a new world power. In 2008, the volume of credit in Brazil grew by over 30% in nominal terms and by 24% in real terms, while the international financial crisis began to be felt in the banking sector. But while the latest movements in the Brazilian banking sector, did think they would produce an increase in the dynamics of growth in the level of intermediation given the greater competition that was generating, in the month of February has been observed a shrinkage in the rhythm of creation of new loans to the private sector of 7.7% compared to the month of January, thus accumulating his second consecutive fall. For the Brazilian Government, the growth of financial intermediation is the key to growth and economic development. That is why that it is working on different measures to boost lending to the private sector. One of these measures has been launched by the national monetary Council of Brazil had agreed to provide guarantees for loans for small and medium-sized banks in yesterday.
Through this proposal, the Government will provide guarantees for up to R $ 5 billion (around US $2.2 billion) on certificates of deposits for banks, stimulating in this way, the generation of credit. This measure improves also the competitive situation of the small and medium-sized entities forcing a greater effort at large banks to fight their market space. One of the factors that hinder the growth of credit to the private sector is the high differential in rates existing, which has risen strong in 2008 as a result of the international financial crisis.