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SAO PAULO/BRASILIA, April 3 (Reuters) - Brazil's banks remain ready to withstand the impact of a harsh domestic recession on loan book quality, the central bank said on Monday.
In a semi-annual report on banking industry stability, policymakers noted that the challenges posing so-called problematic loans, or credit in default or with a high risk of falling in arrears, on the banking system remain under control. Those type of loans remain, however, on the rise, the report said.
Reporting by Guillermo Parra-Bernal and Alonso Soto; Editing by Chris Reese