The International Monetary Fund (IMF) praised Pix as one of the main drivers of the transformation of the Brazilian financial system, but warned that the Central Bank needs financial and budgetary autonomy to maintain its supervisory capacity in light of the sector’s expansion.
The conclusions can be found in the Financial System Stability Assessment report, released Thursday (Jul. 23).
The document, prepared in partnership with the World Bank following technical missions to Brazil from December 2025 to March 2026, states that the country’s financial system is resilient but faces challenges related to staffing shortages at supervisory agencies, legal constraints, and the need for institutional strengthening. The previous report of this kind was prepared in 2018.
Pix
According to the IMF’s assessment, Pix has established itself as a key tool for financial inclusion, increased competition, and the digitization of the Brazilian banking market.
Emerging digital banks, the text argued, have reduced concentration in the banking sector and continue to foster competition and efficiency, which has also led to lower credit rates.
The report highlights that the instant payment system has accelerated the digital transformation of the financial sector and driven the growth of digital banks.
At the same time, the authority warns of increased cyber risks and digital fraud, advocating for the strengthening of the system’s governance.
Among the recommendations are the adoption of an official oversight policy for PIx and the separation of the Central Bank’s operational and supervisory functions.
Autonomy
In addition to praising Pix, the IMF states that it is urgent to strengthen the Central Bank’s structure to ensure the stability of the financial system.
Brazil, the report says, should adopt measures to address staffing constraints in supervisory agencies and grant full budgetary autonomy to the Central Bank of Brazil, in addition to expanding legal protections for civil servants and updating legislation on the resolution of financial institutions.
In the IMF’s view, the progress made since the last review in 2018 has been significant, but obstacles that limit the monetary authority’s ability to act persist.
The authorities, the text goes on to say, have made substantial progress, but still face challenges – primarily stemming from staffing constraints, a lack of legal protection, and limitations on legal authority.
The IMF states that these limitations reduce the intensity of banking supervision and may increase reliance on self-regulatory bodies in the capital markets.
Despite these recommendations, the IMF concludes that the Brazilian financial system remains sound and capable of absorbing economic shocks.
The report highlights the importance of maintaining the inflation-targeting regime, robust institutions, and the continuation of structural reforms to preserve the country’s financial stability.
Response from the Central Bank
In a statement, the Brazilian Central Bank said it welcomes the report and noted that the document contributes to the improvement of economic and financial policies.
“The Central Bank thanks the technical teams at the IMF and the World Bank for the quality of their work, for the constructive dialogue maintained throughout the process, and for the high technical standard of the analyses presented in the reports.”
The Central Bank also highlights that the IMF recognized the progress made by the Brazilian financial system since 2018, the transformative role of Pix, and the need to strengthen the institutional framework to secure resources, rebuild the civil service workforce, and preserve supervisory capacity.
Ministry of Finance
Brazil’s Ministry of Finance also issued a statement noting that Brazil had the second-largest upward revision in growth projections among G20 economies. The IMF expects Brazil’s gross domestic product to grow 2.4 percent in 2026. The forecast for next year was also revised upward, reaching 2.2 percent.
The ministry further pointed out that the report acknowledges that the fiscal consolidation path proposed in the country’s Budget Guidelines Bill presented in April will lead to the stabilization of public debt.
Source: Agência Brasil