Cost of credit and bank spread: what has changed?
The debate on the Cost of credit and bank spread in Brazil it is as old as it is fundamental for the financial health of companies and families.
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After all, who has never wondered why interest rates in the country seem persistently high, even in scenarios of falling Selic rates?
If you're looking to understand the recent transformations in this complex landscape, the forces shaping the interest you pay, and future prospects, this article is for you.
Get ready for an in-depth analysis, with real data and human insight into how economic and regulatory changes have directly impacted your wallet.
In this article, we will explore:
- The anatomy of spread banking and what it really represents.
- The macro and microeconomic factors that influence it.
- Regulatory changes and competitive pressure in the financial market.
- The impact of digital transformation and fintechs.
- Perspectives and what to expect from the future of credit in Brazil.
Unraveling the Bank Spread: More Than Just Profit
For those unfamiliar, the cost of credit and bank spread may seem like a distant technical term.
Simply put, the spread is the difference between the interest rate that the bank pays when raising money (for example, when paying a CDB) and the interest rate that it charges when lending that same money.
However, it is a mistake to think that this margin is limited to the financial institution's profit.
The composition of the spread Brazilian banking is notorious for including a series of components that, in other countries, are smaller or non-existent.
A bank, when calculating the final interest that will be charged to you or your company, needs to consider:
- Fundraising Cost: The basic cost the bank pays to have the money.
- Taxes: Tax burden on credit transactions.
- Default (Credit Risk): The provision the bank must make to cover potential defaults. This has historically been one of the biggest culprits in Brazil.
- Administrative Expenses: Bank operating costs.
- Profit Margin (Shareholder Return): What is left to remunerate the capital.
The crucial point of our discussion is that, even with the Selic at low levels in recent periods, the non-Selic part of the spread – especially credit risk and operating expenses – remained stubbornly high.
The changes we are seeing today aim to attack precisely these components.
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Default Risk: The Weight of Credit History
One of the main elements that distort the cost of credit and bank spread is, without a doubt, the high perceived and real risk of default in Brazil.
Historically, economic instability, high unemployment rates during times of crisis, and a culture of poor financial literacy have contributed to an environment where lending money is risky.
Banks, acting rationally to protect their capital, embed this uncertainty in the form of higher interest rates for the borrower.
Ongoing Changes: Positive Registration and Credit Guarantee
Fortunately, there has been significant progress. The mandatory implementation of Positive Registration in 2019, for example, it was an attempt to create a fairer and more comprehensive credit history.
By considering a consumer's good payment history, and not just outstanding debts, the idea is that financial institutions can price risk more accurately.
Those who pay on time, in theory, should have access to lower interest rates.
This structural change is like replacing a regular light bulb with an LED one in a room: the initial cost may be a little higher (in this case, the time it takes to adapt the system), but the long-term result is much more efficient and economical lighting (pricing).
Another area of innovation is in guarantees. The expansion of credit secured by real estate (home equity) or vehicle has allowed for substantially lower interest rates as the risk to the lender decreases dramatically.
Read also: Current status of personal loan approval: criteria and rates in 2025
The Effect of Competition and the Digital Revolution
Perhaps the most impactful change in the landscape of cost of credit and bank spread does not come from above (from the government or the Central Bank), but from the base: competition.
The massive entry of fintechs, digital banks and credit unions in recent years have injected an unprecedented dose of competition into the market that was dominated by the “big five”.
These new institutions operate with lean cost structures, without the need to maintain a vast network of physical branches.
This drastic reduction in operating costs translates into a spread minor.
The advent of Pix and the implementation of Open Finance (Open Financial System) are catalysts for this revolution.
Open Finance, in particular, allows customers to securely share their financial data with different institutions.
This empowers the consumer and forces banks to compete not only on price but also on service.
Your creditworthiness data becomes a valuable asset, allowing you to receive pre-approved credit offers with personalized and often more competitive rates.
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What to Expect: The Future of Credit Costs
The trend is clear: the credit market is moving toward greater efficiency and transparency. cost of credit and bank spread should become more segmented and personalized.
For individuals, access to loans is expected to become faster, with less bureaucracy, and with rates that more accurately reflect individual risk profiles.
For small and medium-sized enterprises (SMEs), the outlook is also promising. Imagine a bakery that needs working capital to purchase new equipment.
Previously, she would have been restricted to the bank where she had an account, facing lengthy analysis and high interest rates.
Today, with Open Finance, this bakery can have its transactional history evaluated by several fintechs B2B credit, receiving offers in minutes and comparing rates efficiently.
This is a real example of how technology is democratizing access to capital.
| Influence Factor | Before Digitization (2015) | Post-Open Finance (2025) |
| Access to information | Asymmetry: Bank holds the information. | Symmetry: Consumer shares (if they want). |
| Operating Cost | High: Agency networks and personnel. | Bass: Digital platforms. |
| Risk Pricing | Widespread, punishing good payers. | Personalized, based on real data. |
| Release Speed | Days or weeks. | Hours or minutes. |
The Importance of Financial Education and Its Choice
With so many options and increasing competition, bargaining power has shifted to the consumer. The question is: have you taken advantage of this shift?
To ensure that the cost of credit and bank spread be as favorable as possible for you, it is essential to adopt an active stance.
THE secret It's not just about looking for the lowest interest rate, but rather understand the composition of the debt.
THE Total Effective Cost (CET) is your best friend, as it includes the interest rate, fees, insurance and all charges.
Comparing proposals based on the APR, and not just the nominal rate, is a golden rule for any conscientious borrower.
Regulatory transparency is a fundamental step. The Central Bank has been publishing detailed reports on average rates, a tool that serves as a barometer for society.
To deepen your knowledge of the credit market and official statistics, you can consult the Monetary and Credit Statistics Report of the Central Bank of Brazil.
What has changed, in essence, is that the market is forcing institutions to justify every percentage point of spread.
Those that fail to innovate and reduce their risk and operational costs will inevitably be overtaken.
Conclusion: A New Era for Credit
We are witnessing a robust and irreversible transformation in the Brazilian financial market.
The time when the cost of credit and bank spread was an inaccessible black box is coming to an end.
Digital competition, Open Finance, and improvements in credit risk management (such as the Positive Registry) are paving the way for fairer, more transparent, and more accessible credit.
The challenge now is to maintain competitive pressure and ensure that the benefits of digitalization reach all layers of society, not just those most familiar with technology.
Consumers and businesses today have more tools than ever to negotiate and choose. But are they using them all to their advantage?
The answer to this question will define how fast the spread banking will continue to fall.
Take advantage of this moment of effervescence and explore your options. Your financial future will thank you.
Frequently Asked Questions (FAQs)
1. What is the Total Effective Cost (CET) and why is it more important than the interest rate?
THE Total Effective Cost (TEC) represents the total cost of a credit transaction, including interest rates, fees, taxes (IOF), insurance, and other charges levied by the bank. It is the most important indicator because it reflects the actual amount you will pay, allowing for an honest comparison between different credit proposals.
2. Does Open Finance really help reduce the spread?
Yes, indirectly. The Open Finance (Open Financial System) allows customers to securely share their financial history with multiple institutions. This forces banks to actively compete for your profile, offering lower interest rates (and spreads) smaller and more personalized for those with a good credit history. Information becomes bargaining power.
3. What has the Central Bank done to control the cost of credit and banking spread?
The Central Bank acts primarily through structural and regulatory measures, such as the implementation and improvement of Open Finance and the Positive Registry. The Central Bank's actions aim to increase competition and transparency, which are the most effective mechanisms for reducing spread in a sustainable way, without direct intervention in rates.
4. How can I find out the current average bank spread in Brazil?
The Central Bank of Brazil regularly publishes detailed reports and statistics on interest rates and the bank spread by credit type (Individual, Legal Entity, Credit Card, etc.). You can track this data directly on the Central Bank's official website, in the Credit Statistics section.
