| dc.description.abstract | According to Basel (2006), by adhering to self-regulation rules, financial institutions
improve their credit granting processes and policies, minimizing the risk of bad loans,
which are in default, resulting in greater efficiency in their activity. This study aims to
analyze the causal relationship between bank efficiency and bank defaults, in a
scenario of adherence to the Basel II International Agreement. For this purpose, the
Granger causality test for panel data was applied to a database, extracted from the
Central Bank of Brazil, relating to the 50 largest banks in equity, operating in the
Brazilian financial system, in the period between 2004-2019. The main results show
that, despite the efforts of Organs regulatory agencies and the Brazilian adherence to
the terms of Basel II, the Brazilian bank credit system presents, throughout the period
studied, an upward trend in defaults, whereas, in the same period, banking efficiency
declines. On the other hand, given the scenario assessed throughout this study, it’s
not possible to state that the forgetful efforts were in vain, that is, without them, the
results could be more unfavorable to banking institutions and the Brazilian financial
system as a whole. | en |
