Brazilian Development Bank

Banco Nacional de Desenvolvimento Economico e Social

Type	Government-owned corporation
Industry	Finance and Development
Founded	1952
Headquarters	Brasília, Brazil
Key people	Luciano Coutinho, (Chairman)
Net income	US$ 5.0 billion (2011)
Total assets	US$ 334.7 billion (2011)
Employees	2,000
Website	www.bndes.gov.br

The Brazilian Development Bank, also known as National Bank for the Economic and Social Development (Portuguese: Banco Nacional de Desenvolvimento Econômico e Social, abbreviated: BNDES) is a federal public company associated with the Ministry of Development, Industry, and Trade. Its goal is to provide long-term financing for endeavors that contribute to the country's development. BNDES is one of the largest development banks in the world (after the Chinese Development Bank, which boasts assets of around RMB 7.52 trillion, or around $1.2 tn). Its non-performing loan ratio is also less favorable (2.2%) compared to the CDB's that stands below 1%.

The results of the endeavors financed by BNDES can be seen in the improved competitiveness of the Brazilian economy as well is in the higher quality of life of its population.^{[citation needed]} BNDES also seeks to strengthen the capital structure of private companies, the development of capital markets, the trading of machines and equipment and the financing of exports.

Since its establishment, on June 20, 1952, BNDES has financed large-scale industrial and infrastructure endeavors, and has played a significant role in the support of investments in agriculture, commerce and the service industry, as well as in small and medium-sized private businesses, even though its focus lies on larger firms.^[1] The bank has supported social investments aimed at education and health, family agriculture, basic sanitation and mass transportation.

BNDES considers it fundamentally important, in the execution of its credit policy, to take into account ethical and environmental principles. As such, BNDES is firmly committed to the principles of sustainable development.

The bank offers financial support lines and programs to companies of any size and sector that have been set up in the country. The partnership with financial institutions with agencies established around the country facilitates the dissemination of credit, enabling greater access to BNDES's resources.

The BNDES has three integral subsidiaries: FINAME, BNDESPAR and BNDES Limited. Together, the three companies comprise the BNDES System.

Recently there have been some debates about the bank's plan to finance a dam project that causes dislocation of local communitites. It was also criticised for supporting the international expansion of some private firms.^[1]

Criticism

BNDES operates with lobbying of larger firms, not for "small and medium-sized private businesses" or "Brazilian (...) higher quality of life of its population".,,^[2][3][4]

In 2013 ~90% of BNDESPAR investments concentrates in five industruies.^[2] In the recent history of the BNDES investments, lobby irregularities and conflict of interest arrives with JBS S.A.,^[3][5] OGX/EBX Group,^[6] GPA (company),^[7] and others.

External links

• Brazilian Development Bank (BNDES) official webpage
• Introduction to Banco Nacional de Desenvolvimento Econômico e Social in English

References