Brazil banks ready to withstand tough cycle, central bank says
SAO PAULO/BRASILIA Oct 1 (Reuters) - Brazil's banks are ready to withstand extreme external shocks such as sudden fluctuations in currency and interest rates and a pronounced decline in property assets or borrower creditworthiness, the central bank said on Thursday, as the country braces for two straight annual contractions for the first time in 80 years.
The emergence of new bankruptcy protection events for companies involved in a large-scale corruption scandal at state companies, or the impact of the currency's sharp decline on corporate debt are situations that require "special attention" from regulators, the bank said in a semi-annual financial stability report.
(Reporting by Guillermo Parra-Bernal and Marcela Ayres; Editing by Chizu Nomiyama)
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