BRASILIA, Oct. 27 (Xinhua) -- Brazil's Central Bank said Tuesday it sees no "significant risk" to the country's financial stability, noting that the financial system maintains adequate levels of capitalization and liquidity, and the capacity to withstand adverse scenarios.
The bank's financial stability report for the first half of 2026 published on Tuesday pointed to a slowdown in credit for households and businesses, a trend consistent with high interest rates and a more moderate economic activity, as financial institutions have become more cautious in granting loans.
However, the report indicated that despite pressures regarding capital and liquidity, banks remain capable of weathering adverse economic conditions.
The report showed an increase in credit-related difficulties among households, with delinquency reaching its highest level since 2012 across most types of credit.
The bank's estimates suggest the pressure on consumers' ability to make payments will persist throughout the second half of the year.
Despite this outlook, the bank concluded that the country's financial system remains resilient and the provisions held by financial institutions are sufficient to cover expected losses.
