Differentiated banking strategies across the territory: an exploratory analysis

Abstract

Abstract This paper aims at investigating to what extent there is a differentiated regional banking strategy in the Brazilian economy. Based on the Post Keynesian theory of regional liquidity preference (Dow, 1993), the paper analyzes consolidated balance sheets of bank branches located in different Brazilian regions. Through the analysis of indicators built using this database, the paper finds evidence to support the thesis that the Brazilian banking system's strategies are heterogeneous across the territory. Furthermore, we conclude that this behavior reinforces existing uneven regional patterns of development of the economy. Keywords: banking strategydevelopmentregional economicsregional liquidity preference