Download or read book Dynamic Loan Loss Provisions in Uruguay written by Torsten Wezel and published by International Monetary Fund. This book was released on 2010-05-01 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper assesses the merits of countercyclical loan loss provisioning in Uruguay. Using a stress test methodology, it quantifies the protection against macroeconomic shocks provided by the stock of dynamic provisions accumulated since 2001 and finds that medium-sized shocks would be fully absorbed, offsetting the additional costs caused by rising specific provisions. In addition, the paper simulates the path of dynamic provisions under the formulas used in Spain, Peru and Bolivia, showing that the alternative paths diverge significantly from the actual buildup and in part better conform to the Uruguayan credit cycle.
Download or read book Modernizing Bank Regulation in Support of Financial Deepening written by Mr.Mario Mansilla and published by International Monetary Fund. This book was released on 2009-09-01 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies how Uruguay's regulatory framework was gradually strengthened to address shortcomings identified during the 2002-03 crisis, to align with international standards and, more recently, to deal with cyclical pressures resulting in an acceleration of bank lending. In particular, regulatory reforms pertaining to loan classification and provisioning as well as liquidity requirements are reviewed and evaluated against best practices. The paper concludes that prudential regulation in Uruguay now generally conforms to high standards while also embracing innovative elements such as dynamic provisioning.
Download or read book Dynamic Loan Loss Provisioning written by Torsten Wezel and published by International Monetary Fund. This book was released on 2012-05-01 with total page 105 pages. Available in PDF, EPUB and Kindle. Book excerpt: This simulation-based paper investigates the impact of different methods of dynamic provisioning on bank soundness and shows that this increasingly popular macroprudential tool can smooth provisioning costs over the credit cycle and lower banks’ probability of default. In addition, the paper offers an in-depth guide to implementation that addresses pertinent issues related to data requirements, calibration and safeguards as well as accounting, disclosure and tax treatment. It also discusses the interaction of dynamic provisioning with other macroprudential instruments such as countercyclical capital.
Download or read book Uruguay written by International Monetary Fund and published by International Monetary Fund. This book was released on 2011-12-29 with total page 86 pages. Available in PDF, EPUB and Kindle. Book excerpt: This 2011 Article IV Consultation—Selected Issues paper focuses on estimating potential output and the output gap and spillovers from agriculture in the case of Uruguay. It introduces additional economic information and theory to estimate potential output, shedding some light on the discussion of current monetary and fiscal policies. The objective is to take advantage of economic data to disentangle the most recent economic performance by introducing multivariate techniques. The paper also presents an overview of the labor market and pension system of Uruguay.
Download or read book Do Dynamic Provisions Enhance Bank Solvency and Reduce Credit Procyclicality a Study of the Chilean Banking System written by Mr.Jorge A. Chan-Lau and published by International Monetary Fund. This book was released on 2012-05-01 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Dynamic provisions could help to enhance the solvency of individual banks and reduce procyclicality. Accomplishing these objectives depends on country-specific features of the banking system, business practices, and the calibration of the dynamic provisions scheme. In the case of Chile, a simulation analysis suggests Spanish dynamic provisions would improve banks' resilience to adverse shocks but would not reduce procyclicality. To address the latter, other countercyclical measures should be considered.
Download or read book Regional Economic Outlook October 2010 Western Hemisphere written by International Monetary Fund. Western Hemisphere Dept. and published by International Monetary Fund. This book was released on 2010-10-19 with total page 106 pages. Available in PDF, EPUB and Kindle. Book excerpt: Heating Up in the South, Cooler in the North broadly describes the economic scene for the Western Hemisphere. The report emphasizes how a mixed environment--with slow recovery in the United States and other advanced economies, but strength in Asia--differently shapes the outlooks for the diverse economies of Latin America and the Caribbean. This issue also focuses on financial issues in Latin America, with a chapter on the challenges of allowing credit to expand safely, without creating excessive risks, and a chapter that looks at macroprudential financial policies--topics especially important in today's context of low global interest rates and capital flows to emerging economies. The final chapter turns to Caribbean economies, exploring the drivers, and obstacles, that affect their growth.
Download or read book Chile written by International Monetary Fund and published by International Monetary Fund. This book was released on 2011-08-24 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: In recent years, the IMF has released a growing number of reports and other documents covering economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with government officials, is published at the option of the member country.
Download or read book Handbook of Safeguarding Global Financial Stability written by and published by Academic Press. This book was released on 2012-12-31 with total page 547 pages. Available in PDF, EPUB and Kindle. Book excerpt: Political and social forces exert pressure on our globalized economy in many forms, from formal and informal policies to financial theories and technical models. Our efforts to shape and direct these forces to preserve financial stability reveal much about the ways we perceive the financial economy. The Handbook of Safeguarding Global Financial Stability examines our political economy, particularly the ways in which these forces inhabit our institutions, strategies, and tactics. As economies expand and contract, these forces also determine the ways we supervise and regulate. This high-level examination of the global political economy includes articles about specific countries, crises, and international systems as well as broad articles about major concepts and trends. Substantial articles by top scholars sets this volume apart from other information sources Diverse international perspectives result in new opportunities for analysis and research Rapidly developing subjects will interest readers well into the future
Download or read book Science Technology and Innovation in Latin America and the Caribbean written by Juan Carlos Navarro and published by Inter-American Development Bank. This book was released on 2010-09-01 with total page 117 pages. Available in PDF, EPUB and Kindle. Book excerpt: The advent of the knowledge society has highlighted the growing importance of innovation and intellectual assets as sources of competitiveness and long-term economic growth. This book examines human capital and financial inputs into innovation systems, scientific and innovation outputs, innovative behavior by firms, the links between changes in economic structure, technological intensity, and growth, institutional development and public policy, and the status of one key crosscutting and enabling technological revolution: information and communication technology.
Download or read book The World of Forking Paths written by Alessandro Rebucci and published by Inter-American Development Bank. This book was released on 2012-03-15 with total page 104 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report details the divergent paths that the world economy may take and their potential effects on Latin America and the Caribbean. Scenarios are constructed employing a modeling exercise that captures the trade, financial and other linkages between the region and the rest of the world. While vulnerabilities remain and external shocks have been and remain critical, the region enjoys many strengths and has developed a growing arsenal of policy tools. What is the balance of vulnerabilities versus strengths? How can countries address the existing vulnerabilities? How can they perfect their policy tools and minimize the effect of external crises?
Download or read book Staff Guidance Note on Macroprudential Policy Detailed Guidance on Instruments written by International Monetary Fund and published by International Monetary Fund. This book was released on 2014-07-11 with total page 129 pages. Available in PDF, EPUB and Kindle. Book excerpt: This note covers considerations that can guide the staff’s policy advice on the use of a broad range of macroprudential tools. It discusses the transmission and likely effectiveness of these tools in mitigating systemic risks and the set of indicators that can be used in surveillance to assess the need for changes in macroprudential policy settings. This note is a supplement to the Staff Guidance Note on Macroprudential Policy.
Download or read book Enhancing Financial Sector Surveillance in Low Income Countries Case Studies written by International Monetary Fund and published by International Monetary Fund. This book was released on 2012-04-16 with total page 86 pages. Available in PDF, EPUB and Kindle. Book excerpt: This supplement presents ten case studies, which highlight the roles of targeted policies to facilitate sustainable financial deepening in a variety of country circumstances, reflecting historical experiences that parallel a range of markets in LICs. The case studies were selected to broadly capture efforts by countries to increase reach (e.g., financial inclusion), depth (e.g., financial intermediation), and breadth of financial systems (e.g., capital market, cross-border development). The analysis in the case studies highlights the importance of a balanced approach to financial deepening. A stable macroeconomic environment is vital to instill consumer, institutional, and investor confidence necessary to encourage financial market activity. Targeted public policy initiatives (e.g., collateral, payment systems development) can be helpful in removing impediments and creating infrastructure for improved market operations, while ensuring appropriate oversight and regulation of financial markets, to address potential sources of instability and market failures.
Download or read book Uruguay written by International Monetary Fund. Monetary and Capital Markets Department and published by International Monetary Fund. This book was released on 2013-05-31 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: The buffers built in the aftermath of Uruguay’s 2002 banking crisis have shielded the financial sector from the effects of the global financial turmoil. Growth has been robust and the outlook continues to be favorable. However, inflation persists but capital inflows have improved, and policy measures have been taken in response. Uruguay exhibits no obvious signs of near-term domestic macrofinancial vulnerability. The external risks to the economy and the financial system come from a fragile global environment, and policy measures are recommended to reduce dollarization.
Download or read book Regional Economic Outlook October 2011 Western Hemisphere written by International Monetary Fund. Western Hemisphere Dept. and published by International Monetary Fund. This book was released on 2011-11-03 with total page 93 pages. Available in PDF, EPUB and Kindle. Book excerpt: Despite the recent deterioration in the global economic environment, projections for the region involve only a modest worsening of the outlook. The October 2011 Regional Economic Outlook: Western Hemisphere cautions, however, that there are severe downside risks. A sharp slowdown in Asia, for example in response to a recession in advanced economies, could impact commodity prices, with negative effects on Latin American commodity exporters. With global monetary policy likely to remain accommodative, capital flows could exacerbate overheating and amplify vulnerabilities in emerging markets. Countries with strong real linkages to the United States face a somewhat weaker outlook and should give priority to reducing public debt. Although much of the Caribbean is recovering from a prolonged recession, the outlook remains constrained by high public debt and weak tourism flows. This issue finds that policies can play an important role in mitigating the economic impact of terms-of-trade shocks, and underscores the need to rebuild policy buffers.
Download or read book Emerging Issues in Financial Development written by Tatiana Didier and published by World Bank Publications. This book was released on 2013-12-17 with total page 586 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book synthesizes the results of a comprehensive analysis of the status, prospects, and challenges of sustainable financial development in Latin America, as well as the lessons for developed and developing countries.
Download or read book Financial Development in Latin America and the Caribbean written by Augusto de la Torre and published by World Bank Publications. This book was released on 2011-11-30 with total page 299 pages. Available in PDF, EPUB and Kindle. Book excerpt: During the 1980s and 1990s, financial sectors were the Achilles heel of economic development in Latin America and the Caribbean (LAC). Since then, these sectors have grown and deepened, becoming more integrated and competitive, with new actors, markets, and instruments springing up and financial inclusion broadening. To crown these achievements, the region s financial systems were left largely unscathed by the global financial crisis of 2008 09. Now that the successes of LAC s macrofinancial stability are widely recognized and tested, it is high time for an in-depth stocktaking of what remains to be done. Financial Development in Latin America and the Caribbean: The Road Ahead provides both a stocktaking and a forward-looking assessment of the region s financial development. Rather than going into detail about sector-specific issues, the report focuses on the main architectural issues, overall perspectives, and interconnections. The report s value added thus hinges on its holistic view of the development process, its broad coverage of the financial services industry beyond banking, its emphasis on benchmarking, its systemic perspective, and its explicit effort to incorporate the lessons from the recent global financial crisis. Financial Development in Latin America and the Caribbean: The Road Ahead builds on and complements several overview studies on financial development in both LAC countries and the developing world that were published in the past decade. It will be of interest to policy makers and financial analysts interested in improving the financial sector in the LAC region.
Download or read book Policy Instruments to Lean Against the Wind in Latin America written by Mr.G. Terrier and published by International Monetary Fund. This book was released on 2011-07-01 with total page 113 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reviews policy tools that have been used and/or are available for policy makers in the region to lean against the wind and review relevant country experiences using them. The instruments examined include: (i) capital requirements, dynamic provisioning, and leverage ratios; (ii) liquidity requirements; (iii) debt-to-income ratios; (iv) loan-to-value ratios; (v) reserve requirements on bank liabilities (deposits and nondeposits); (vi) instruments to manage and limit systemic foreign exchange risk; and, finally, (vii) reserve requirements or taxes on capital inflows. Although the instruments analyzed are mainly microprudential in nature, appropriately calibrated over the financial cycle they may serve for macroprudential purposes.
