Reflections on the brazilian banking industry: evidence of the formation of multinational financial institutions

The present paper discusses the process of internationalization and the emergence of Brazilian multinational banks. For this matter we discuss whether the banking industry has created prosperous conditions to financial conglomerates develop, identifies the leading institutions in the country, and describe the first steps taken towards internationalization. The paper also discusses the incentives and inhibitors to the international expansion of Brazilian banks. The results indicate that Bank of Brazil, Itaú/Unibanco and Bradesco are leaders. Incentive factors are the institutional robustness, the economic restructuring that took place in the 1990s and gave strength to national banks, and the momentum of Brazil's economy due to a stronger domestic market. Inhibitors are the threats posed by the uncertainty and the instability due to the financial crisis of 2008, with an unpredictable unfolding.