kemalbas Brazil’s central bank, like many other central banks around the world, followed in the Fed’s footsteps in 2022 and increased benchmark interest rates aggressively to counter rising inflation. Thanks to falling inflation in recent months, the bank has held Brazil’s benchmark Selic interest rate steady at 13.75% since October 2022. However, the effects of prior increases, which numbered 12 in total , are still reverberating across the country’s banking industry. Brazilian lenders have, for example, taken a more cautious approach to unsecured lending as borrowers in the space are viewed as riskier bets during times of elevated interest rates and weaker economic growth. These headwinds have weighed on the unsecured lending business and led to a negative shift in investor sentiment toward players with high exposure to the lucrative but risky space. This includes Nu Holdings Ltd. (NYSE: NU ), known as Nubank, the largest digital bank by customer base in Brazil. Since its founding in 2013, when it started offering credit cards to customers with poor credit histories who had been sidelined by traditional banks, NU has aggressively tightened its grip on Brazil’s unsecured lending market. It today offers a wide range of consumer banking products and […]
Nu Holdings: An Opportunity To Buy Gold At The Price Of Silver
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