Credit distribution in the Northeast: A comparison between BNDES and BNB 2010–2019

Abstract

This paper characterizes and compares the spatial distribution of loans from the National Bank for Economic and Social Development (BNDES) and the Banco do Nordeste do Brasil (BNB) between the years 2010 and 2019 in the municipalities of the Northeast region. Aggregate measures of distribution and spatial coverage of the quantity and value of loans aggregated and disaggregated by subcategories are presented. Linear regressions are also used to estimate the correlation between the allocation of loans and indicators of development, location, wealth and productive structure of municipalities. It can be noticed that, over the last decade, the BNDES considerably retrieved in terms of volume, number of loans and municipalities served, while BNB activities remained relatively stable. The two banks also complement each other, as BNDES loans are primarily intended for medium-large companies in more developed regions. BNB, on the other hand, serves many individuals, with microcredits, in the semi-arid and other poorer regions.