The default rate for Brazil's financial sector dropped to 3.1% in June, after remaining stable for three months at 3.3%, according to data released by Banco Central do Brasil.
Meanwhile, the delinquency rate in the free resources segment declined to 4.4% in June, down from 4.6% in May, the central bank said.
Total bank lending in Brazil increased 0.7% in June from the previous month to reach 3.13 trillion Brazilian reais, growing 1.2% so far in 2018.
Loans to households grew 0.4% to 1.69 trillion reais, while the company portfolio increased 1.2% to 1.44 trillion reais.
As of July 26, US$1 was equivalent to 3.73 Brazilian reais.