Download or read book Monetary and Financial Stability Implications of Capital Flows in Latin America and the Caribbean written by Alejandro Jara and published by . This book was released on 2008 with total page 59 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Monetary and Financial Stability Implications of Capital Flows in Latin America and the Caribbean written by Bank for International Settlements and published by . This book was released on 2008 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Central Bank participants at the BIS 2008 Open Economies Meeting in Punta del Este, Uruguay, discussed trends in capital flows since 2003 and their monetary and financial stability implications. Capital flows appear to be more benign today than in the past, partly because of a greater share of foreign direct investment and reduced reliance on foreign financing that has contributed to improvements in international investment positions (IIPs). Participants held the view that the economies in the region had become more resilient. For instance, although currency and maturity mismatches are still a concern in some countries, they appear to be less relevant today than in the past. The recent shift in the global financial environment and its regional implications were also discussed. Notwithstanding continuing concerns about risks, the impact of the financial turmoil at the time of the meeting was still limited. Indeed, there was more concern with the risks of a global slowdown than with direct financial contagion. Looking forward, a key issue is how the transition away from the benign global financing environment that characterised the world economy in this decade will unfold. The effects on the region from the global financial turmoil and the associated downturn in economic activity in advanced economies will vary from country to country, and much will depend on specific developments, such as the evolution of commodity prices. In terms of macroeconomic policies in the face of large foreign currency inflows, fiscal and prudential policies to enhance resilience were considered important. It was also believed that sovereign wealth funds could play a useful role. There was less consensus regarding capital controls. Although some argued that they could be effective in the short run, there could be costs in terms of financial market development. Views also diverged on the effectiveness of foreign exchange intervention. Participating central banks agreed that securing financial stability in small open economies required the cooperation of monetary, fiscal and prudential authorities. However, participants expressed concern about possible contagion from the recent financial turmoil operating through foreign-owned banks. In some cases, there was concern that domestic banks with large foreign refinancing needs could also become vulnerable. The document in this volume was written by Alejandro Jara and Camilo E. Tovar with the technical advice of Ramon Moreno. We would like to thank all participants at the meeting for their comments and overall feedback. We are greatly indebted to Pablo Garcia-Luna and Rodrigo Mora for their excellent research assistance. Mar Gudmundsson made detailed comments on the document. We hope this publication will be a useful contribution towards improving the understanding of the monetary and financial stability implications of capital flows in the region.

Download or read book Monetary and Financial Stability Implications of Capital Flows in Latin America and the Caribbean written by and published by . This book was released on 2008 with total page 59 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Financial Stability Reports in Latin America and the Caribbean written by Cheng Hoon Lim and published by International Monetary Fund. This book was released on 2017-03-28 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: Many countries in Latin America and the Caribbean now publish financial stability reports. This study reviews their latest issues to assess their content, quality, and transparency. While some reports provide a strong analysis of risks and vulnerabilities, there are significant cross-country differences, and many reports could be improved by adopting a more comprehensive, forward-looking, and thematic assessment of financial stability. A well thought out communication strategy, including a regular and predictable publication schedule and an easily accessible website, is also important to enhance the impact of the reports. Data gaps, particularly at the disaggregated level, are material and need to be urgently addressed.

Download or read book Volatile Capital Flows written by Ricardo Hausmann and published by IDB. This book was released on 1996 with total page 114 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Central Banking in Latin America written by Mr.Luis Ignacio Jácome and published by International Monetary Fund. This book was released on 2015-03-17 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides a brief historical journey of central banking in Latin America to shed light on the debate about monetary policy in the post-global financial crisis period. The paper distinguishes three periods in Latin America’s central bank history: the early years, when central banks endorsed the gold standard and coped with the collapse of this monetary system; a second period, in which central banks turned into development banks under the aegis of governments at the expense of increasing inflation; and the “golden years,” when central banks succeeded in preserving price stability in an environment of political independence. The paper concludes by cautioning against overburdening central banks in Latin America with multiple mandates as this could end up undermining their hard-won monetary policy credibility.

Download or read book Advancing Financial Development in Latin America and the Caribbean written by Dyna Heng and published by International Monetary Fund. This book was released on 2016-04-12 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the state of financial development in the Latin America and Caribbean (LAC) region as well as potential growth and stability implications from further development. The analysis suggests that access to financial institutions has expanded notably in the past decade, and the region compares favorably with other emerging market regions on this dimension. The region, however, continues to lag behind peers on broader financial development, especially with respect to markets, though there is substantial heterogeneity across countries. Financial systems in many LAC countries are also underdeveloped relative to their macroeconomic fundamentals. Further financial development could convey net benefits to the region, provided there is adequate regulatory oversight to prevent excesses.

Download or read book Global Financial Regulatory Reform Implications for Latin America and the Caribbean LAC written by Robert Rennhack and published by INTERNATIONAL MONETARY FUND. This book was released on 2009-07-21 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Latin America and Caribbean (LAC) region has weathered the global financial crisis reasonably well so far, although tighter global financial conditions began to take their toll on trade, capital flows and economic growth in late 2008. This resilience reflects the reforms put in place by many countries over the past decade to strengthen financial supervision and adopt sound macroeconomic policies. Building on this progress, the region's financial sector reform agenda now aims at further improvements, including steps aiming to improve compliance with the Basel Core Principles of Banking Supervision and to broaden and deepen domestic financial markets.

Download or read book Evolving Banking Systems in Latin America and the Caribbean written by and published by . This book was released on 2007 with total page 93 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Evolving Banking Systems in Latin America and the Caribbean written by Bank for International Settlements and published by . This book was released on 2013 with total page 99 pages. Available in PDF, EPUB and Kindle. Book excerpt: On 26 and 27 January 2006, the BIS, in collaboration with the Bank of Jamaica, hosted a meeting for senior central bankers in Kingston, Jamaica, under the broad theme quot;Evolving banking systems in Latin America and the Caribbean: challenges and implications for monetary policy and financial stabilityquot;. The meeting was chaired by Myacute;r Gudmundsson, Deputy Head of the Monetary and Economic Department of the BIS, with the purpose of discussing how the smaller economies of Latin America and the Caribbean (LAC) have dealt with the transformation of their financial system during the last decade.

Download or read book Global Financial Stability Report October 2019 written by International Monetary Fund. Monetary and Capital Markets Department and published by International Monetary Fund. This book was released on 2019-10-16 with total page 109 pages. Available in PDF, EPUB and Kindle. Book excerpt: The October 2019 Global Financial Stability Report (GFSR) identifies the current key vulnerabilities in the global financial system as the rise in corporate debt burdens, increasing holdings of riskier and more illiquid assets by institutional investors, and growing reliance on external borrowing by emerging and frontier market economies. The report proposes that policymakers mitigate these risks through stricter supervisory and macroprudential oversight of firms, strengthened oversight and disclosure for institutional investors, and the implementation of prudent sovereign debt management practices and frameworks for emerging and frontier market economies.

Download or read book Global Financial Stability Report April 2021 written by International Monetary Fund and published by International Monetary Fund. This book was released on 2021-04-06 with total page 92 pages. Available in PDF, EPUB and Kindle. Book excerpt: Extraordinary policy measures have eased financial conditions and supported the economy, helping to contain financial stability risks. Chapter 1 warns that there is a pressing need to act to avoid a legacy of vulnerabilities while avoiding a broad tightening of financial conditions. Actions taken during the pandemic may have unintended consequences such as stretched valuations and rising financial vulnerabilities. The recovery is also expected to be asynchronous and divergent between advanced and emerging market economies. Given large external financing needs, several emerging markets face challenges, especially if a persistent rise in US rates brings about a repricing of risk and tighter financial conditions. The corporate sector in many countries is emerging from the pandemic overindebted, with notable differences depending on firm size and sector. Concerns about the credit quality of hard-hit borrowers and profitability are likely to weigh on the risk appetite of banks. Chapter 2 studies leverage in the nonfinancial private sector before and during the COVID-19 crisis, pointing out that policymakers face a trade-off between boosting growth in the short term by facilitating an easing of financial conditions and containing future downside risks. This trade-off may be amplified by the existing high and rapidly building leverage, increasing downside risks to future growth. The appropriate timing for deployment of macroprudential tools should be country-specific, depending on the pace of recovery, vulnerabilities, and policy tools available. Chapter 3 turns to the impact of the COVID-19 crisis on the commercial real estate sector. While there is little evidence of large price misalignments at the onset of the pandemic, signs of overvaluation have now emerged in some economies. Misalignments in commercial real estate prices, especially if they interact with other vulnerabilities, increase downside risks to future growth due to the possibility of sharp price corrections.

Download or read book Effects of United States Monetary Policy on the Capital Flows to the Latin America Countries written by David Rene Samayao Gordillo and published by . This book was released on 2012 with total page 127 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the latest time, the US has had an easy Monetary Policy. Because of the increasing link among the countries through interconnections on international trade, financial, and labor markets, such policy has not only had effects in the US economy, but also in the rest of the world. So many countries, especially emerging and developing countries, have suggested that such a policy has been causing an excessive flow of funds out of the US which are disrupting the exchange rate and competitiveness of those countries. An innovation of the analysis is that capital flows are divided in "Firm related" (direct investment and equity flows) and "Debt" (debt instruments and private loans obtained from foreign financial institutions). Another innovation is related to the measure of the external factors considering the US alone and a compound of Advanced Countries (AC) that includes: the US, European Union, United Kingdom, and Japan. The performed analysis indicates that the US Monetary Policy has been having a role on the determination of the capital flows to the Latin America Countries (LAC). However, these external "push factors" have been less important than the "pull factors" from Latin America. In the model, the "push factors" reflected to have had influence on the total capital flows, especially through the global liquidity proxies measured by the growth of the monetary stock in the AC. Holding all other things constant, one percent increase in the monetary stock in the US will generate capital flows to the LAC for an amount between 0.47 to 1.71 percentages of GDP. This effect is bigger when using the proxy constructed with the US alone than when using the compound of AC. The long term interest rate registered significance only on the "Firm related" type of capital flows and only when using the compound of AC. The performed analysis also indicates that there is preeminence of the "pull" (domestic) over the "push" (external) factors. This means that the LAC have been pursuing actions such as political stability, sound and consistent economic policies, and more market oriented policies that are attracting capital flows by themselves.

Download or read book Managing Elevated Risk written by Iwan J. Azis and published by Springer. This book was released on 2014-12-11 with total page 129 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book discusses the risks and opportunities that arise in Emerging Asia given the context of a new environment in global liquidity and capital flows. It elaborates on the need to ensure financial and overall economic stability in the region through improved financial regulation and other policy measures to minimize the emergent risks. "Managing Elevated Risk: Global Liquidity, Capital Flows, and Macroprudential Policy—An Asian Perspective" also explores the range of policy options that may be deployed to address the impact of global liquidity on domestic financial and socio-economic conditions including income inequality. The book is primarily aimed at policy makers, financial market regulators and supervisory agencies to help them improve national regulatory systems and to promote harmonization of national regulations and practices in line with global standards. Scholars and researchers will also gain important information and knowledge about the overall impacts of changing global liquidity from the book.

Download or read book Evolving Banking Systems in Latin America and the Caribbean written by and published by . This book was released on 2007 with total page 93 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Emerging Capital Markets and Globalization written by Augusto de la Torre and published by World Bank Publications. This book was released on 2006-10-20 with total page 232 pages. Available in PDF, EPUB and Kindle. Book excerpt: Back in the early 1990s, economists and policy makers had high expectations about the prospects for domestic capital market development in emerging economies, particularly in Latin America. Unfortunately, they are now faced with disheartening results. Stock and bond markets remain illiquid and segmented. Debt is concentrated at the short end of the maturity spectrum and denominated in foreign currency, exposing countries to maturity and currency risk. Capital markets in Latin America look particularly underdeveloped when considering the many efforts undertaken to improve the macroeconomic environment and to reform the institutions believed to foster capital market development. The disappointing performance has made conventional policy recommendations questionable, at best. 'Emerging Capital Markets and Globalization' analyzes where we stand and where we are heading on capital market development. First, it takes stock of the state and evolution of Latin American capital markets and related reforms over time and relative to other countries. Second, it analyzes the factors related to the development of capital markets, with particular interest on measuring the impact of reforms. And third, in light of this analysis, it discusses the prospects for capital market development in Latin America and emerging economies and the implications for the reform agenda.

Download or read book Fintech and Financial Inclusion in Latin America and the Caribbean written by Mr. Dmitry Gershenson and published by International Monetary Fund. This book was released on 2021-08-20 with total page 77 pages. Available in PDF, EPUB and Kindle. Book excerpt: Despite some improvement since 2011, Latin America and the Caribbean continue to lag behind other regions in terms of financial inclusion. There is no clear evidence that fintech developments have supported greater financial inclusion in LAC, contrary to what has been observed elsewhere in the world. Case studies by national policy experts suggest that barriers to entry in the financial sector, along with a constraining regulatory environment, may have hindered a faster adoption of fintech. However, fintech development seems to have accelerated in the wake of the COVID-19 pandemic and with the support of recent policy initiatives.