Brazilian Bank Research Articles

Impacto dos Investimentos em Tecnologia sobre a Rentabilidade do Setor Bancário Brasileiro

Objetivo: Analisar a relação entre os investimentos em tecnologia e a rentabilidade dos cinco maiores bancos brasileiros entre 2009 e 2018.Método: Por meio de análise de correlação e regressão de dados em painel, foi avaliado, especificamente, o impacto do investimento em tecnologia sobre o Retorno dos Ativos (ROA).Originalidade/Relevância: Apesar do crescimento do investimento em tecnologia bancária, o nível de evidenciação dos mesmos por parte das companhias de capital aberto no Brasil ainda se mostra limitado, havendo poucos detalhes divulgados em relatórios corporativos acerca dos valores investidos, dos tipos de investimento realizados, do retorno esperado e dos retornos já obtidos com investimentos anteriores. Essa evidenciação é influenciada por fatores como tamanho e rentabilidade das empresas.Resultados: No presente estudo, foi identificado uma relação positiva entre investimento em T.I e Retorno sobre os Ativos (ROA) dos bancos analisados e, portanto, a presença de um paradoxo da rentabilidade não foi constatada.Contribuições teóricas/metodológicas: Foram constatados uma relação positiva entre investimento em TI e desempenho. Foi observada correlação positiva significante a 5% entre os investimentos em TI e desempenho financeiro, dado pela relação entre o lucro antes da depreciação e total de vendas. A análise de regressão constatou que um incremento nos investimentos em TI elevou o desempenho financeiro da empresa (Beta = 0,204 e p<0,1). A elevação da participação dos investimentos em TI sobre os gastos operacionais elevou em 0,039 pontos percentuais o Retorno sobre os Ativos.Contribuições sociais / para a gestão: Auferir conhecimento na gestão das organizações bancárias afim de orientar na tomada de decisão sobre os investimentos tecnológicos que devem ser realizados.

A New Class of Cure Rate Survival Models: Properties, Inference and Applications

We propose a new class of survival models for time-to-event data with a cure fraction. This new model is an extension of the promotion time cure rate model. Furthermore, we extend the model to the regression model to evaluate the effect of covariates in the cure fraction. An expectation-maximization algorithm is adopted for estimating the model parameters. A simulation study is conducted in order to assess the proposed model and the computation algorithm. The methodology is illustrated using a real Brazilian bank personal loan portfolio data set.

Evaluating the Performance of NIST’s Framework Cybersecurity Controls Through a Constructivist Multicriteria Methodology

This paper aims to show how creating a risk plan can be solved with the help of the constructivist multicriteria method. A case study using Multicriteria Decision Aid Constructivist (MCDA-C) was applied, with cybersecurity framework’s controls as a reference. The study was conducted in a large Brazilian bank in Brazil. The relevance of this work is the need to show that the application of multicriteria methods can be applied in the context of information security, which recommends the use of such methods to assist in risk analysis. The methodology used in this study was both quantitative and qualitative, obtaining primary data through brainstorming with decision-makers and forms answered by experts. The secondary data were obtained through the Framework for Improving Critical Infrastructure Cybersecurity, created by NIST - the National Institute of Standards and Technology of the United States. The problem was structured according to the constructivist method, and the data collected were processed and calculated. The study concluded that the category of Security Continuous Monitoring controls stood out compared to other categories. It also shows the importance of applying the constructivist method for the management of cyber risks by unravelling a problem and providing a basis for decision making. Our work contributes to a better understanding of risk management, encouraging the adoption of the constructivist method as a form of risk management best practice.

Influência da crise financeira de 2008: uma análise sobre a tecnologia da informação dos maiores bancos do consolidado financeiro brasileiro (2001-2016)

Este artigo tem por intuito analisar os efeitos da tecnologia de informação (TICs) sobre a funcionalidade no sistema financeiro brasileiro baseando-se na abordagem Pós-Keynesiana e Neo-Schumpeteriana. A partir da abordagem Pós Keynesiana, buscou-se identificar as contribuições das TICs nos fatores de produção no sistema bancário, como a seleção de variáveis estratégicas dos bancos brasileiros no período de recessão. Por intermédio da metodologia de análise de dados em painel , durante os anos de 2001 a 2016, obteve-se resultados que captaram os efeitos e a repercussão da crise de 2008 sob o sistema bancário brasileiro. A partir dos principais resultados da estimação observou-se que o valor da sensibilidade das inovações financeiras foi superior ao fator de produção trabalho e, durante o período, a criação de inovações financeiras representou maior relevância quanto aos aspectos da redução de custos pelas instituições financeiras brasileiras sob análise.

Desafios culturais, metodológicos e tecnológicos da transformação digital: um estudo de caso no mercado bancário brasileiro

O estudo apresenta os avanços e resultados obtidos pelo maior banco privado brasileiro em seu processo de Transformação Digital (TD), bem como seus desdobramentos culturais, metodológicos e tecnológicos. Esses desdobramentos foram alinhados à proposta de valor do banco, “ágil e centrada no cliente”, com a disponibilização de produtos e serviços cada vez mais adequados às necessidades e desejos da clientela, especialmente por canais digitais, para fazer frente aos desafios de inovação trazidos por bancos digitais e fintechs. Esta é uma pesquisa qualitativa e exploratória, sob a forma de estudo de caso, que indicou: (1) aspectos mais desenvolvidos do processo de TD: cliente no centro de tudo, liderança e Capital Humano reforçam o novo modelo de negócio, todo o time de tecnologia treinado e seguindo os “ritos e cerimônias ágeis”, ampliação dos investimentos para manter-se na vanguarda do setor e ambiente vivencial para teste de hipóteses; (2) aspectos menos desenvolvidos: necessidade de avanço na comunicação nos diversos níveis e áreas e para a disseminação da agilidade pela organização, lideranças das áreas de negócio em “fase de comprar o modelo”, manter-se atento a concorrentes menores e mais ágeis em criar e adotar novas tecnologias. Além das contribuições teóricas/metodológicas aos programas de mestrado profissional, cuja espinha dorsal consiste na produção deste modelo de trabalho acadêmico (relato técnico), o estudo contribui para a gestão, ao apresentar os passos dados pelo banco estudado e os resultados obtidos em seu processo de TD.

Narratives and Public Policies: The Case of the Brazilian Development Bank

ABSTRACT Over the last decades, the Brazilian Development Bank (BNDES) has been the main source of long-term credit for investments in Brazil. However, from the mid-2010s onward, the fiscal costs of the subsidized credits provided by the bank have been increasingly stressed, configuring a second narrative of its role in the Brazilian economy. Based upon a review of the most frequently cited and most relevant academic articles about the BNDES published between 2005 and 2019, this paper analyzes these competing narratives and their impact on the public policies adopted to foster investments in the country. In a context marked by lower market interest rates and by an increasing capacity of large companies to obtain long-term credit from non-governmental sources, the second narrative prevailed over the last years and led to a law reform in 2017 to reduce the subsidies provided by the bank. The paper empirically demonstrates a narrative shift that influenced public policies regarding development banking and shows how changing settings affect the interest groups’ capacity to disseminate their narratives.

The Interaction Between Banks and Brazilian Customers Through Facebook

The literature on the use of social media by banks is focused on specific processes that do not provide an integrated view of bank processes through social networks (SN). This article proposes FACEBAN – a prescriptive framework for the use of Facebook by banks. The research is structured in two phases of data collection, with two pieces of document research totaling 3,716 analyzed comments on bank Facebook pages and 15 semi-structured interviews with Brazilian bank customers and managers. The result was the following: FACEBAN was created considering three sets of concepts and recommendations: 1) action strategy on Facebook, 2) bank processes, and 3) affordances. The FACEBAN integrated bank processes and affordances with an action strategy on social networks, providing recommendations for bank managers. This research expands the existing literature on affordances in the context of Brazilian bank processes, adding a strategic view of action on social networks.

Does business cycle heterogeneously impact on banks’ capital buffers, risk and financial stability in BRIC economies?

This paper revisited the relationship between capital buffers and risk adjustments by showing the impact of the business cycle. Empirically, we used an unbalanced panel dataset from 426 banks of the BRIC countries (i.e., Brazil, Russia, India, and China) for the period 2007–2016. By using the two-step system GMM (2GMM), this study shows the results as: (i) capital buffers of Russia, India, and China behave counter-cyclically while it is pro-cyclical for Brazilian banks over the business cycle; (ii) in BRIC’s economy, credit risk, and bank financial stability is related to business cycle in counter and pro-cyclical fashion, respectively; (iii) capital buffers adjustment speed is the premier in China and India, shining banks accessibility to capital refill is much easier to Brazil and Russia. The adjustment speed is heterogeneous across countries; and (iv) financial stability in apex for the Chinese, Russian, and Indian banks apart from the Brazilian banks.

Why is bank credit in Brazil the most expensive in the world?

The article reviews the scientific literature about the determinants of credit spreads in Brazil. Econometric evidence shows that market concentration, a proxy for (un)competitive behavior, is statistically significant for all studies surveyed. We posit that that higher concentration is part of a well-defined strategy by the Brazilian Central Bank that favors prudence over efficiency. Other variables that help explain why spread in Brazil is among the highest in the world include market microstructure, operating costs, credit risk, opportunity costs, managerial quality, nominal interest rates (SELIC), market concentration, interest rate volatility, earmarked credit, and GDP.

The role of specific heritage among Hispanic-owned banks in America

PurposeSpecific types of Hispanic-owned banks (HOBs), including those related to Brazilian, Cuban, Mexican or Puerto Rican heritage, have not be analyzed to date. There are important differences between the relevant communities, including geographic location, language barriers, population size and the importance of remittances to foreign nations. The analysis here sheds light on these differences.Design/methodology/approachHOBs with the Federal Deposit Insurance Corporation (FDIC)-designated minority-owned depository institution (MDI) designation are identified, along with bank ownership heritage. Financial data, a measure of market competition, and demographics of depositors from 2003 to 2017 are utilized in an exploratory analysis comparing banks by HOB type, with random effects regressions for the pre-collapse (2003–2006) and post-collapse (2009–2017) periods.FindingsAlthough each of the four types of HOBs serve Hispanic and poor communities, there are substantial differences. For example, Brazilian and Puerto Rican banks on the island held high levels of nonperforming loans (NPLs) post-collapse, with the Brazilian and Mexican banks expanding levels of risky commercial real estate (CRE) lending post-collapse, while the Cuban banks contracted CRE lending. Differences in terms of return on assets (ROAs), the cost of borrowed funds and the tier-1 risk-based capital ratio are also identified.Social implicationsHOBs, like Latinos in the USA, are culturally heterogeneous and likely operate in different ways depending upon the culture and economic circumstances of the communities where they operate.Originality/valueAlthough there is substantial research on MDIs, this is the first analysis which treats HOBs as culturally heterogeneous. Further research of this type is warranted.

Machine learning predictivity applied to consumer creditworthiness

Credit risk evaluation has a relevant role to financial institutions, since lending may result in real and immediate losses. In particular, default prediction is one of the most challenging activities for managing credit risk. This study analyzes the adequacy of borrower’s classification models using a Brazilian bank’s loan database, and exploring machine learning techniques. We develop Support Vector Machine, Decision Trees, Bagging, AdaBoost and Random Forest models, and compare their predictive accuracy with a benchmark based on a Logistic Regression model. Comparisons are analyzed based on usual classification performance metrics. Our results show that Random Forest and Adaboost perform better when compared to other models. Moreover, Support Vector Machine models show poor performance using both linear and nonlinear kernels. Our findings suggest that there are value creating opportunities for banks to improve default prediction models by exploring machine learning techniques.

Returns to Scale as an Established Scaling Indicator: Always a Good Advisor?

Abstract In data envelopment analysis (DEA), returns to scale (RTS) are a widely accepted instrument for a company to reveal its activity scaling potentials. In the case of increasing returns to scale (IRS), a company learns that upsizing activities improves its productivity. For decreasing returns to scale (DRS), the instrument likewise should depict a downsizing force, again for improving productivity. Unfortunately, here the classical RTS concept shows misbehavior. Under certain circumstances, it is the wrong indicator for scaling activities and even hides respective productivity improvement potentials. In this paper, we study this phenomenon, using the DEA concept, and illustrate it via little numerical examples and a real-world application consisting of 37 Brazilian banks.

Future of the national financial market: Moment of innovation by FinTechs in transformation to the national banking environment

The Brazilian banking system is in a stage of maturity conducive to the receipt of a new entrant that, following the global trend, are FinTechs[3]. In this way, these companies that use technology to provide financial services, are beginning to impact the national financial market, bringing with it potential to shake the results of the country’s large financial corporations. This article has a broad overview of the concentration of the national banking market, compared to global standards, as well as the dimensioning of opportunity for new entrants through technologies established by startups[4], in an irreversible process in terms of innovation. The methodology used here was based on a broad literature review resulting in the identification and consequences of the main impacts of this new financial order, in which size is no longer so relevant, given the implementation of new practices for a constantly renewed spectrum of clients. New entrants to the financial market should be truly customer-centric, agile and able to adapt to a rapidly changing environment, skilled at working with companies in a complex ecosystem of partnerships and markets. They should seek excellence in data analysis, dynamic pricing and the construction of technologies that allow new functionalities to be developed and implemented. New needs, practical, without the bank status symbols.

Micro-level transmission of monetary policy shocks: The trading book channel.

We open the black box of the monetary policy transmission mechanism with a granular model that considers the balance-sheet composition and network relationships of each economic agent. Though there are several well-documented channels through which monetary policy operates, we focus on the overlooked trading book channel, which arises because of adjustments in the accounting value of trading book exposures on banks’ balance sheets that have to be marked to market when interest rates change. Variations in banks’ net worth due these adjustments are used as input to a network model that incorporates the financial and corporate sectors. The framework permits us to determine the effects of interest rate changes on every bank and firm in the economy and any second-round (contagion) effects in the short run. We apply the model to a comprehensive database of Brazilian banks and firms from 2015 to 2020. We find that interest rate shocks affect more strongly financial stability in periods of monetary policy tightening. We also find notable asymmetric effects of positive and negative interest rate shocks in the Brazilian economy, with positive interest rate shocks affecting more financial stability. Finally, our results also suggest a non-linear relationship between interest rate changes and financial stability, reinforcing the need to mitigate monetary policy shocks through interest rate smoothing and adequate communication and transparency to society.

Analysis of Patented Homeopathic Products and Medicines in Brazil

Objectives: This study was to carry out a prospective study on the patents reports of homeopathic formulations in the brazilian intellectual property bank, the National Institute of Industrial Property (INPI). Methods: This is a prospective research of patents referring to homeopathy products and medicines carried in May 2020. Searches were made for patents deposited with homeopathic purpose with the terms “homeopathy” and “homeopathic” from the first document until the last one deposited in 2019. We have found thirty-eight deposits with the search terms cited above, after exclusion of duplicates we selected twenty four. Results: Among the 24 patent reports selected, 15 (62.5%) were patents of invention. Among the classification of products, we highlight those of type A61K with 19 (79.1%). Twenty-four deposits were selected with the search terms “homeopathy” and “homeopathic”. 20 (83.3 %) deposits with the term “homeopathic” and 4 (16.66%) to the term “homeopathy”. Among the reports stand out patents of homeopathic formulations 14 (58.3%). There were a greater number of deposits in the years 2009 and 2013, both with 4 (16.6%) deposits. Conclusion: After analyzing patents on homeopathic products at the intellectual property bank in Brazil, it is concluded that most are related to new formulations. It can be seen that in Brazil the interest in relation to the protection of intellectual property in this topic is still small. Key words: Homeopathy, Homeopathic medicines, Pharmacy, Property Intellectual, Patents.

A Mensuração do Processo de Cocriação de Valor em Empresas do Setor Bancário Brasileiro

A realidade emergente pautada no maior acesso a informações, na convergência tecnológica, e na rápida evolução da internet como meio para comunicação e, também, realização de negócios, exige uma reavaliação do sistema tradicional de criação de valor centralizado na empresa. Este artigo se direciona para a ideia da cocriação de valor, na qual o valor não é mais definido dentro da empresa e apenas entregue ao consumidor, mas sim criado conjuntamente com stakeholders em um processo focado nos indivíduos e suas experiências. Dessa forma, o estudo busca ampliar conhecimento acerca da cocriação de valor em empresas brasileiras com base em informações empíricas, para tanto, o objetivo da pesquisa se traduz em mensurar a cocriação de valor em empresas do setor bancário brasileiro e fazer uma comparação do desempenho entre elas. Utiliza-se o modelo DART (diálogo, acesso, risco e transparência), proposto por Prahalad & Ramaswamy (2004), como base de análise dos dados obtidos no Índice de Sustentabilidade Empresarial BM&F-ISE referente a 2017. Nos resultados, percebe-se o destaque de um dos bancos analisados, bem como o fato de que as empresas analisadas ainda precisam de maior foco no desenvolvimento de fatores relacionados a dimensão “acesso” do modelo utilizado.

Beyond money and reputation: sustainable HRM in Brazilian banks

PurposeThe purpose of this study is to analyze sustainable human resources management (HRM) in the Brazilian banking industry and to propose an integrative framework of HRM practices toward sustainability, linking stakeholders to HR systems.Design/methodology/approachSupported by the stakeholder theory, the research design follows a triangulation of multiple data sources, covering 85% of the national banking industry: (1) annual Global Reporting Initiative sustainability reports, (2) employment tribunal decisions and (3) in-depth interviews with top managers of the Banking Trade Union and the Brazilian Federation of Banks, a trade association.FindingsThe analysis reveals various engagement levels across the sustainable HRM dimensions: justice and equality, transparent HR practices, profitability and employee well-being. However, current practices in all dimensions fall largely behind sustainable standards. An integrative framework of HRM practices is also proposed.Originality/valueThe study provides the first integrative framework of sustainable HRM practices in the literature.

Cost-sensitive metaheuristic technique for credit card fraud detection

To prevent online financial losses, credit card frauds need to be addressed and it should be controlled. To minimize the credit card frauds, fraudulent credit card transactions should be identified and minimized. Keeping this fact in view, in this paper, a cost-sensitive metaheuristic technique (CSFPA: cost-sensitive learning flower pollination metaheuristic algorithm) is proposed to minimize the misclassification cost of credit card transactions from class imbalance data using the correlation-based feature section method (CFS), flower pollination algorithm (FPA), and cost-sensitive classifier. To identify the fraudulent transactions, the random forest (RF) ensemble classifier is used as a base learner in the cost-sensitive classifier for classification tasks and the proposed CSFPA technique has been tested on the Brazilian bank dataset. The performance of proposed CSFPA has been compared with cost insensitive techniques and cost-sensitive techniques such as NB (Naive Base), KNN (K-Nearest Neighbors), LB (Logit Boost), CSForest (Cost-sensitive decision forest), NBBFS (NB Best First Search) KNNGSS (KNN Greedy Stepwise Search), and CSFCS (CSForest Cuckoo Search). The experimental outcomes revealed that the proposed CSFPA technique has obtained encouraging outcomes for handling misclassification costs (Total cost and Avg. cost) and also has outperformed (FPR, Precision and Recall) compared to all the other approaches.

Análise dos efeitos dos instrumentos financeiros no conservadorismo contábil em bancos brasileiros

O Conservadorismo Condicional foi definido, historicamente, como um dos princípios da Contabilidade. Porém, o registro de Instrumentos Financeiros (IF) pelo Valor Justo não é considerado conservador. Objetiva-se neste trabalho investigar quais são os efeitos dos IF no conservadorismo das Informações Contábeis de bancos brasileiros, os quais são instituições com altos valores de IF. Foram coletadas informações no site do Banco Central do Brasil, no período de 2009 a 2019. As observações foram segregadas de acordo com a análise de decis, de acordo com os valores de IF. Foram analisados os grupos com valores mais baixos e mais altos de IF, utilizando variáveis dummy e interações com as variáveis do modelo de Cunha et al. (2016). Os resultados indicaram que os bancos com valores mais baixos de IF apresentam conservadorismo e aqueles com valores mais altos de IF não apresentam conservadorismo nas informações contábeis.

Is this Workplace Bullying? How Ideas about Conflict Shape Conflict Management Strategies

Litigation avoidance, union avoidance, and human resource strategies have been identified for a long time as drivers for the adoption of specific conflict management strategies and Alternative Dispute Resolution (ADR) methods. This paper adds an important element when determining how organizations respond to conflicts in the workplace: the way that the conflict is understood by actors involved in it. Drawing on interviews with managers from 14 different banks and leaders from 6 different unions in the Brazilian banking sector, and complemented by thorough archival research on unions’ newspapers, this paper suggests that unions and banks have different understandings of workplace bullying, which are dependent on the frames of reference that they use to interpret labor relations (critical/pluralist in the case of unions, unitarist in the case of banks). Those different understandings have direct impacts on how each actor responds to workplace bullying. Unions favor collective tools that frame bullying as a structural issue, while banks favor conflict management tools that focus on individual managerial behavior.