Itaú CEO Milton Maluhy warns of credit tightening and urges fiscally‑focused presidential campaign

Milton Maluhy Filho, chief executive of Itaú Unibanco, told GloboNews that Brazil’s presidential candidates should centre their campaigns on concrete economic proposals, fiscal responsibility, legal certainty and structural reforms to boost investor confidence and sustain growth. He stressed that maintaining macro‑economic stability and clear rules for businesses is essential for lowering capital costs and expanding investment.

At the same time, Maluhy and other banking leaders warned that credit conditions are deteriorating. The three largest private banks – Itaú Unibanco, Bradesco and Santander – have increased loan‑loss provisions by 12.4% to R$ 28.7 billion, while credit growth has slowed. High interest rates, with the Selic at 14%, and inflation are eroding household income, leading to a rise in delinquency rates that remain well above historical averages. The banks are therefore tightening lending standards and prioritising risk management over market share expansion.