Australian bank lending to recession-hit Brazil is at record levels. Banks have A$1.35 billion at risk in a country that credit risk insurer Coface has damned as beset by strife.Brazil's economy contracted by 3.8 per cent in 2015 and a further three per cent drop in GDP is expected in 2016, Coface said."The enduring political crisis and deep economic recession, which led to the collapse of confidence indexes, have now been topped by an impeachment trial of President Dilma Rousseff," the insurer said.Revenues from "both imports and exports have been falling," Coface noted."Although the sharp depreciation in exchange rates over the last year has finally improved the competitiveness of locally manufactured products, the weaker currency has reduced export prices in US dollars."Thus far, the improved export volumes have not been enough to result in higher revenues," Coface said.Australian banks ploughed in willingly as suppliers of capital over the second half of 2015, cranking up lending from $651 million at June 2015.Australian banks built Brazil risk progressively post-GFC, when country risk was $152 million, near a tenth of what it is now.Might an Australian banking name be planting seeds for a Latin American adventure?