Sound Banks for Healthy Economies: Challenges for Policymakers in Latin America and the Caribbean in Times of Coronavirus
The COVID-19 crisis has already taken a large human and economic toll on Latin America and the Caribbean. Given the deep recessions, financial systems are likely to come under significant strain and it remains unclear how long the health crisis will persist and how soon and fast economies will recover. Unlike recent financial or balance of payments crises, this may be a slow-moving event in which credit risks take center stage. Good policies will be critical to navigate the coming months to maintain financial stability. This report identifies and discusses challenges and develops key recommendations to help policymakers across the region make the necessary decisions to ensure that banks play a constructive role in the recovery.