Brazil's High Interest Rates Hit Banks' Trading Results

Brazil's high interest rates have led to a 12.4 billion-real ($2.3 billion) decline in trading results for the nation's four largest consumer banks in the first nine months of 2023. Executives blame the central bank's benchmark Selic rate, which has held at a two-decade high of 15% since June. The mismatch between credit and funding is the main cause, as most retail credit in Brazil carries fixed rates, while most deposits pay variable yields that fluctuate with Selic.