Why are interest rates high in Brazil? Our research answers this question by further developing the rentier-financial class coalition framework. The objective was to study the relationship between the main revenues of the Brazilian banking sector and the Selic rate. We confirm that a sixth rentier channel operates on the credit market, maintaining the coalition's rentier position when the Selic rate declines, such as in 2020, when it reached its lowest historical level. The article was published in December 2023 in the Brazilian Journal of Political Economy (BJPE).

This article develops the "revenue-clearing mechanism" concept practiced by the Brazilian banking sector: our results confirm that incomes compensate for each other. Depending on the monetary policy context, increasing spread income compensates for security income losses and vice versa. Hence, we conclude that the rentier channels – operated by the rentier-financial class coalition – are working simultaneously in the bond and credit markets to preserve the sector's high revenues. The article was approved in January 2023 for publication in the book "Financialization: Crisis, Stagnation and Inequality", organized by the economists Lena Lavinas, Guilherme Gonçalves, and Norberto Montani. Publisher: Contra Corrente.