Brazil faced a minor bank run over the weekend sparked by false rumors over the country's social security fund, but one analyst told CNBC on Tuesday that the real issue facing the country's banking system is a runaway credit boom.
Neil Shearing, chief emerging markets economist at macro-economic research firm Capital Economics told CNBC that the massive increase in credit in Brazil over the last ten years had increased the risk of a credit crunch for Brazil's financial sector.
"The point is that it's increased very rapidly and experience shows that countries where credit increases rapidly, experience crisis at some point or other."
Rumors over the weekend that Brazil's social security fund called Bolsa Familia was to be cancelled led thousands of people in the north-east of the country to rush to withdraw money from Brazil's Caixa Economica Federal, which pays the subsidy.
(Read More: Even the Carnival Can't Save Brazil From a Slump)
That bank run had little to do with the credit-worthiness of the bank and more to do with poor people worried about not receiving their monthly social security payments. But Shearing warned that longer-term problems were bubbling under the surface.