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dc.titleTowards an Effective Regulatory and Supervisory Framework for Latin America
dc.contributor.authorRojas-Suárez, Liliana
dc.contributor.authorWeisbrod, Steven R.
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageArgentina
dc.coverageMexico
dc.coverageLatin America
dc.date.available2010-12-17T00:00:00
dc.date.issue1996-09-27T00:00:00
dc.description.abstractThis paper raises fundamental questions about how banks in Latin America ought to be supervised. The concentration of wealth holders in Latin America and the equity markets' resulting illiquidity permit investors who control banks to subvert the intent of capital requirements, even when the bank itself is subject to rigorous accounting standards. A number of policy implications follow from the analysis. Three of policy recommendations derived from this analysis can be successfully implemented in the short run. Latin American supervisors should focus on: improving the markets that already work in Latin America, which currently are markets for bank liabilities; severely limiting public safety nets for bank liabilities so that risky banks face a high price for raising liabilities; and encouraging macroeconomic policies to play a much more important role in restraining bank risk in Latin America than in the industrial countries.
dc.format.extent54
dc.identifier.doihttp://dx.doi.org/10.18235/0011587
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Towards-an-Effective-Regulatory-and-Supervisory-Framework-for-Latin-America.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectFinancial Crisis and Structural Adjustement
dc.subjectPolicy Evaluation
dc.subjectFinancial Market
dc.subject.keywordsliquidity;WP-336
idb.identifier.pubnumberWorking Papers
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