A number of Andean countries stand out in their successful use of macroprudential financial regulations. This paper focuses on three: countercyclical capital requirements, countercyclical loan-loss provisioning requirements, and liquidity requirements.
This paper discusses the potential usefulness of implementing macroprudential approach in Central America.
In this report, senior fellow Liliana Rojas-Suarez and José Luis Guasch, senior regional advisor on regulation and competition at the World Bank, investigate what donors can do to help Central America secure sustained growth, alleviate poverty, and reduce inequality, and what the role is for the private sector. They focus their recommendations on five areas in which policy changes can make Central American economies more competitive.
Credit at Times of Stress: Latin American Lessons from the Global Financial Crisis - Working Paper 289
This paper identifies the factors at both the country and the bank levels that contributed to the behavior of real credit growth in Latin America during the global financial crisis.
Debt crises in Europe, sluggish growth in the United States, and an overvalued Chinese currency could all spell trouble for developing countries. CGD senior fellow Liliana Rojas-Suarez unpacks three big financial-sector risks for 2011.
The Provision of Banking Services in Latin America: Obstacles and Recommendations - Working Paper 124
Access to financial services -- ranging from credit to the use of electronic means of payment -- is crucial for growth and poverty reduction. This new working paper by CGD senior fellow Liliana Rojas-Suarez tells why access to financial services is low in Latin America and suggests innovative solutions. Among the recommendations: public-private partnerships to improve financial literacy; training specialized juries to adjudicate financial disputes in ways that protect the rights of borrowers and creditors; and regulatory changes to speed the spread of technology offering financial services to low-income families and small firms.
Financial Regulations in Developing Countries: Can they Effectively Limit the Impact of Capital Account Volatility? - Working Paper 59
After more than a decade of financial sector liberalization, both of domestic markets and of international financial transactions (capital account liberalization), policymakers in many developing countries remain concerned about the effects that large and highly volatile capital flows have on their financial systems. However, in spite of the tremendous costs associated with the resolution of crises and signs of discontent among the population with the outcome of some reforms, to date there is no significant evidence indicating a reversal of the reform process. While one could advance a number of hypotheses explaining this "commitment to reforms," developing countries’ decisions and actions seem to indicate that policymakers perceive capital inflows as a necessary component to achieve growth and development.
The historic 2002 United Nations Conference on Financing for Development in Monterrey, Mexico, overlooked a crucial question: regionalism. Financing Development: The Power of Regionalism is designed to correct this omission.