Financial Integration in Central America: Prospects and Adjustment Needs
IMF Policy Discussion Papers, October 1, 2003
Source details
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- Financial Integration in Central America: Prospects and Adjustment Needs
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Bibliographic details
- Authors: Jorge I Canales Kriljenko, Padamja Khandelwal, Alexander Lehmann
- Published: October 1, 2003
- Series: IMF Policy Discussion Papers
- DOI: https://doi.org/10.5089/9781451974195.003
Executive summary and scope
- Publication title: Financial Integration in Central America: Prospects and Adjustment Needs
- Authors: Jorge I Canales Kriljenko, Padamja Khandelwal, Alexander Lehmann
- Publication date: October 1, 2003
- Series: Policy Discussion Paper No. 2003/003; Issue: 003; Volume: 2003; Pages: 28
- DOI: https://doi.org/10.5089/9781451974195.003
- ISBN: 9781451974195; ISSN: 1564-5193
- Core focus: assessment of current barriers to trade in financial services in the six Central American countries seeking a free trade agreement with the United States (the CAFTA) and examination of the relative merits of regional and multilateral liberalization.
Key findings
- Formal barriers:
- There are few formal barriers to trade in financial services in the CAFTA countries.
- Binding constraints:
- Deficiencies in regulatory and competition standards restrict the participation of foreign institutions in the region’s financial systems.
- Shortcomings in judicial systems also limit foreign participation.
- Potential benefits:
- A greater presence of foreign institutions could support other objectives of trade and investment liberalization.
Policy implications and adjustment needs
- Prudential supervision:
- Expansion of foreign financial institutions would require several adjustments in prudential supervision at national levels.
- Regional cooperation:
- Greater cooperation between members of the CAFTA is needed to facilitate safe and effective financial integration.
- Liberalization strategy:
- The paper examines the relative merits of regional versus multilateral liberalization (analysis and trade-offs contained in the full paper).
Subjects and keywords (as listed)
- Subjects: Banking, Deposit insurance, Economic sectors, Financial crises, Financial institutions, Financial sector, Financial services, Foreign banks, International trade, Trade in services
- Keywords: a number of bank, banking market access restriction, CAFTA, capital account, Central America, central bank, contract enforcement, country authorities, Deposit insurance, exchange regulation, exit policy, financial market, Financial sector, financial services agreement, Foreign banks, foreign exchange, gats market access commitment, insurance fund, market access restriction, market entry, market participant, PDP, supervisory authority, Trade in Financial Services, Trade in services
Document metadata and access
- Stock No: PPIEA0032003
- Format availability: Download PDF and more formats on IMF eLibrary; Order a Print Copy (details available on the IMF eLibrary)
- Note on representation: "This Policy Dicussion Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate."
Source: IMF Policy Discussion Papers — Financial Integration in Central America: Prospects and Adjustment Needs (October 1, 2003).