Understanding the industry structure ofbanking services in Brazil is an important task both for thefinancial community at large and for country specialists.The Brazilian financial system is the largest and mostsophisticated in Latin America. This study is organized intofive sections after the introduction, in line with the mainanalytical building blocks, and complemented by appendicesthat describe methodological aspects in more detail. Section2 presents some stylized facts on the Brazilian bankingsystem and compares it to a peer group of countries. Section3 describes and presents the results of the industrialorganization perspective (indirect approach). Section 4presents the methodology and results -- includingsensitivity analysis -- of the direct approach. Section 5identifies and discusses the characteristics and maindrivers of revenues, costs and risks by market segment,while Section 6 concludes and presents policy implications.