Skip to main content
Unpublished Paper
Citizens vs. Banks: Institutional Drivers of Financial Market Litigiousness in Brazil
Direito GV Working Papers (2013)
  • Bruno Meyerhof Salama
  • Thiago Jabor Pinheiro
Abstract
This article analyzes the institutional drivers of Brazil’s alarmingly high levels of litigation between clients and financial institutions. Most of the policy oriented literature that explores that phenomenon discusses the impacts of a perceived debtor-friendly bias of Brazilian courts on generating feedback loops of litigation that further increases interest rates and creates adverse selection within the pool of potential debtors. This literature therefore addresses the way courts behave once disputes reach their doorstep; conversely, we take a step back to understand the underlying reasons for why such a large number of disputes end up in courts in the first place. We accordingly attribute endemic litigation in Brazilian financial markets to a framework of political, economic and legal institutions and circumstances, which this article aims to unbound and explain.
Keywords
  • Litigation,
  • Institutions,
  • Credit Markets,
  • Courts,
  • Regulation,
  • Mercado Financeiro
Publication Date
May, 2013
Citation Information
PINHEIRO, Thiago Jabor; SALAMA, Bruno Meyerhof. Citizens vs. Banks: Institutional Drivers of Financial Market Litigiousness in Brazil. Unpublished Paper. Direito GV, Research Paper Series – Legal Studies, n. 72, 2013. Disponível em: https://works.bepress.com/bruno_meyerhof_salama/81/. Acesso em XX.XX.XXXX._____________ Pinheiro, Thiago Jabor; Salama, Bruno Meyerhof. Citizens vs. Banks: Institutional Drivers of Financial Market Litigiousness in Brazil. Unpublished Paper. Direito GV, Research Paper Series – Legal Studies, n. 72, 2013. Available at: https://works.bepress.com/bruno_meyerhof_salama/81/. [Accessed Day Mo. Year]