Brazil 'attractive for investors'
The relative stability of their financial systems makes Latin American countries such as Brazil an appealing option for investors, it has been claimed.
According to F&C Asset Management, Brazil and other South American nations currently enjoy the "very privileged position" of having solid public sector finances and low levels of indebtedness.
In addition, Brazil's banking sector remains in good health while international competitors continue to struggle in the current economic climate.
"Latin American banks have learnt through bitter experience to be overcapitalised and conservative and therefore they have managed to arrive at this time of turbulence … with very solid balance sheets," said Urban Larson, manager of the F&C Latin American Equity Fund.
"Reserve requirements across the region, in particular in Brazil, are very high and banks are still lending."
F&C cited the recent merger of Itau and Unibanco, two of Brazil's largest banks, as evidence of the sector's current strength.
Brazil's finance minister Guido Mantega recently backed the country's economy to continue its growth despite recent events in global financial markets.
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