Brazil Central Bank reports highest household delinquency since 2012

The Central Bank of Brazil (BC) reported in its Financial Stability Report for the first half of 2026 that while the national financial system remains resilient, household credit indicators have deteriorated significantly. Problematic assets—which include overdue payments or signs of payment difficulty—have reached their highest levels since 2012 across most credit modalities.

Family income commitment to debt servicing reached 28.72% in July, the highest level since 2005. The Central Bank noted that pressure on consumer payment capacity is expected to continue through the second half of the year. This trend is driven largely by rising delinquency rates and high interest rates.

Despite these challenges, the Central Bank maintains that the financial system possesses comfortable levels of capitalization and liquidity. Stress tests indicate that banks have the capacity to withstand adverse economic scenarios, and current provisions are considered compatible with expected losses. However, the increased debt levels among families and businesses are prompting calls for greater caution in credit offerings.