Federal Banking in Brazil: Policies and Competitive Advantages (Financial History)

241 Pages·2010·2.92 MB·English

by  Kurt E. Von Mettenheim

FEDERAL BANKING IN BRAZIL:
POLICIES AND COMPETITIVE ADVANTAGES

FINANCIAL HISTORY
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www.pickeringchatto.com/fi nancialhistory
FEDERAL BANKING IN BRAZIL:
POLICIES AND COMPETITIVE ADVANTAGES
by
Kurt E. von Mettenheim
london
PICKERING & CHATTO
2010
Published by Pickering & Chatto (Publishers) Limited
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No part of this publication may be reproduced,
stored in a retrieval system, or transmitted in any form or by any means,
electronic, mechanical, photocopying, recording, or otherwise
without prior permission of the publisher.
© Pickering & Chatto (Publishers) Ltd 2010
© Kurt E. von Mettenheim 2010
British Library Cataloguing in Publication Data
Mettenheim, Kurt von, 1957–
Federal banking in Brazil: policies and competitive advantages. – (Financial his-
tory)
1. Banco do Brasil. 2. Caixa Economica Federal (Brazil) 3. Banco Nacional de
Desenvolvimento Economico e Social (Brazil) 4. Banks and banking, Centra
– Brazil. 5. Monetary policy – Brazil.
I. Title II. Series
332.1’1’0981-dc22
ISBN-13: 9781848930650
e: 9781848930667
∞

Th is publication is printed on acid-free paper that conforms to the American
National Standard for the Permanence of Paper for Printed Library Materials.
Typeset by Pickering & Chatto (Publishers) Limited
Printed in the United Kingdom at MPG Books Group, Bodmin and King’s Lynn
CONTENTS
Acknowledgements ix
List of Figures and Tables xi
Introduction 1
1 Government Banking Th eory 5
2 Bank Change in Brazil 29
3 Th e Banco do Brasil – with Maria Antonieta del Tedesco Lins 59
4 Th e Caixa Economica Federal (Federal Savings Bank) 101
5 Th e Banco Nacional de Desenvolvimento Econômico e Social
(National Bank for Economic and Social Development, BNDES) 145
Conclusion 173
Notes 183
Works Cited 205
Index 219

ACKNOWLEDGEMENTS
Th is book was written at the Fundação Getulio Vargas Escola de Administração
de Empresas de São Paulo (Getulio Vargas Foundation São Paulo Business School,
FGV-EAESP) and University of Oxford Centre for Brazilian Studies. Research
began in 2002–3 with support from GVpesquisa (FGV-EAESP research fund)
and the Fundo de Àmparo a Pesquisa do Estado de São Paulo (São Paulo State
Research Fund, FAPESP). Discussions with Lourdes Sola, Moisés Marques,
Maria Rita Loureiro and the late Eduardo Kugelmas about the construction
of monetary authority helped launch this study. Chapter 4 began as a course
on political sociology prepared for the management trainee programme of the
Caixa Econômica Federal (Federal Savings Bank, Caixa). Trainees were keenly
aware of crony credit and jobs-for-votes trading at the bank. However, they were
also inspired by reforms that sought to shift policies toward bankless Brazilians.
Early ideas about savings banks and epistemic communities were presented at
meetings of the International Political Science Association Research Committee
on Democratisation.
A Lecturership in Brazilian Studies at St Cross College made it possible to
convene a workshop on Brazilian federal banks in February 2004 and complete
a fi rst draft . Th anks are due Leslie Bethell, Peter Evans, Jenny Corbett, Mariano
Laplane, Valpy Fitzgerald, Leonardo Martinez, André Carvalho, Robert Bruce
Hall, Albert Fishlow and colleagues and students at the Centre for comments
and suggestions. Special thanks are due to Laurence Whitehead and Antonio
Barros de Castro. Revisions at EAESP incorporated suggestions from anony-
mous readers and members of our research group on Banking Democratisation,
especially co-author of Chapter 3, Maria Antonieta del Tedesco Lins and
research assistants Ivan Salomão, Cesar Mori, Gustavo Martucci, Lívia Tomi-
naga and João Maeda. Colleagues and students in the Graduate Programme in
Public Administration and Government and, especially, our research group on
state reform and public policy (Fernando Abrucio, Luiz Carlos Bresser Pereira,
Maria Rita Loureiro, Regina Pacheco) provided further comments.
An international seminar on public banking convened in São Paulo in
August 2006 refi ned comparative and theoretical perspectives. Support from
– ix –