The brazilian government in the beginning of 2012 determined the reduction of the interest rates charged by the public banks. Wanting to raise the competition between banks and make the private banks lower their interest rates by consequence. We see today that private banks found other ways to maintain their growth, but the reduction of the interest rates do not seem like they will stop. Taking that in account answer:
1. How do you evaluate this governmental action? You in favor or against it? (Economically, not politically)
2.A. Two years after that strategy was adopted, what results do you see in the market? Were the governmental measures efficient?
2.B. What was the impact of those measures in the banks profitability? Were the banks capable of finding other ways to compensate their potential income that was lost? Explain
3. What kind of pros and cons that measure can create in the delinquency rate of the loans portfolio of the public and private banks
4. Talk about what should be the governments behavior on the matter of "reducing the interest rates charged by the banks" in the following years
5. Is the impact of those measures the same on different sizes of businesses? Explain in details.