INVESTMENT DECISION AND ECONOMIC DEVELOPMENT: THE CASE OF BANCO DA AMAZÔNIA FROM 2016 TO 2022

Isabela Brandão, Douglas Alencar and Andressa Lima.

In recent years, the Brazilian economy has faced numerous challenges, including economic crises, exchange rate fluctuations, and changes in monetary policy. Therefore, the overall objective was to analyze investment decisions and economic development in Brazil, focusing on the performance of Banco da Amazônia (BASA) and monetary and credit policy between 2016 and 2022, in light of post-Keynesian theory and liquidity preference. Specifically, it aimed to discuss the fundamentals of liquidity preference in post-Keynesian theory and its relevance for investment analysis; analyze how liquidity preference influenced investment decisions in Brazil from 2011 to 2022; and evaluate how these financial policies affected the liquidity and financial performance of Banco da Amazônia, considering the country’s macroeconomic scenario. A literature review based on books, journals, articles, and bank balance sheets was conducted using a mixed-method approach, combining qualitative and quantitative analyses. The study concluded that Banco da Amazônia demonstrated robust financial performance and effective liquidity management according to balance sheets from 2016 to 2022. The preference for liquid and safe assets, combined with strategic diversification of the credit portfolio, allowed the bank to achieve positive results while strengthening its position in the financial market. Continuing these strategies is crucial for BASA to maintain its growth trajectory and continue contributing to the economic development of the Amazon region.

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