Banks in BRICs Signal Credit Risks as Bad Loans Curb Growth

Banks in the biggest emerging markets are losing the confidence of investors as loans turn sour after a two-year credit binge.

Brazil’s financial shares have lost more this year than counterparts in crisis-stricken Europe as consumer defaults hit a 12-month high in June and borrowing costs climbed to 46 percent. Bank stocks in China are trading at lower valuations than global emerging-market indexes for the first time since