New Boss at Two-Century-Old Bank Shakes Up Brazilian Finance

Tarciana Medeiros has had a good run since being appointed president of Latin America’s second-largest bank in January 2023. She led Banco do Brasil SA to a record profit of 35.6 billion reais ($6.3 billion) last year, up more than 11% from 2022. Its stock jumped 76%, the best-performing bank on the benchmark Ibovespa index for 2023. And Medeiros, the first woman to head the two-century-old institution, implemented a diversity plan that led to thousands of promotions for women and people of color. That in turn helped fuel a 20% increase in loans for companies led by women.

Now, with Brazil’s economy on shakier ground, she’s in for a rougher ride. As inflation picks up, investors are fretting about the government’s ability to control spending and reach its fiscal targets. The expectation is that the central bank will start raising rates again.