Falling banks in the world and grow in Brazil March 27th, 2009 for the development of the economies, the financial system plays a fundamental role. Economies can not sustain a solid growth of long term without a strong financial system. This has been fully demonstrated in Latin America where the financial system (particularly, the banking sector), not only not accompanied periods of economic growth in the region, but many times has been the cause of the crisis. In this new period for Latin America, the banking sector has shown significant progress, noting a strong growth with bounded risks, which enabled him to be alien to the problems stemming from the international financial crisis. But in spite of the important progress achieved, the Latin American banking sector has long way to go to reach maturity and become a pillar in the strength of the economies of the region. In the particular case of Brazil, banking sector has been in the news a few months ago with the merger of two giants such as Banco Itau (BVSP:ITAU3; NYSE:ITU) and Unibanco (BVSP:UBBR3;NYSE:UBB). At that time, in an article that I wrote on the topic what is behind the movements in the Brazilian banking sector?, he felt that this fact is part of a series of transformations that will occur in the Brazilian banking sector.

In fact, before such a merger the President of Banco Santander (BVSP:SANB3; NYSE: STD), Emilio Botin, had expressed the intentions of your entity if the private bank number one in Brazil. Fusion had generated the reaction of the Banco do Brazil (BVSP:BBAS3) and Bradesco (BVSP:BBDC3; NYSE:BBD), which went to market to acquire other entities to reset. The Brazilian banking sector is performing these movements is a clear signal of its solidity. As comentaramos in a story of a few days ago, Brazilian banks are safe, according to The Economist, The Economist magazine said that Brazilian banks they represent an exception in this global context of crisis and fall of banks.