Brazilian banks’ loan sales: an exploratory analysis of the impact on operational and financial performance

Abstract

Loan Sales have expanded in Brazil during the first decade of 2000s. Although they have grown modestly since then, credit portfolio sales still occur, without a clear understanding of their impact over national banks’ operational and financial performance. Based on accounting information compiled by the Central Bank of Brazil, over a sample of 192 banks, in the period of 2004 to 2014, this paper uses, in an exploratory manner, Principal Component Analysis (PCA) in order to identify the most representative indicators of latent characteristics of the banks which negotiate in credit secondary markets. The results point the constructs with greatest potential for application in future research concerning functional relationships between loan sales and bank performance: Operational Performance, Mix of Non-Operational Revenues, Types of Loans Sold, Funding Capacity by Deposits, Liquidity Requirements and Credit Portfolio Risk.

Keywords

• Cessão de crédito
• Bancos
• Índices Financeiros
• Análise de Componentes Principais