Financial Market Fragilities in Latin America: From Banking Crisis Resolution to Current Policy Challenges
IMF Working Papers, October 1, 1994
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- Financial Market Fragilities in Latin America: From Banking Crisis Resolution to Current Policy Challenges
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Bibliographic details
- Authors: Steven Riess Weisbrod, Liliana Rojas-Suárez
- Published: October 1, 1994
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451853971.001
Objectives
- This paper has two objectives:
- By reviewing the recent experience of five Latin American countries with the restructuring of their financial sectors, derive lessons regarding the most effective ways to resolve banking difficulties in developing countries.
- Analyze current policy challenges associated with the health of financial systems in Latin America, including:
- designing policies to respond to the recent large inflows of capital that maintain long-run macroeconomic stability and healthy financial systems; and
- evaluating the impact of capital markets competition on the soundness of banking systems.
Key findings and lessons (from restructuring experience in five Latin American countries)
- Lessons regarding the most effective ways to resolve banking difficulties in developing countries are derived from a review of the recent experience of five Latin American countries with financial sector restructuring.
- Subject areas addressed include: Bank credit, Banking, Commercial banks, Credit, Currencies, Financial institutions, International reserves, Loans, Money.
- Keywords and analytic focus include: balance of payments, Bank credit, cash flow, Central America, Commercial banks, commercial paper, Credit, Currencies, economic value, exchange rate, federal savings bank, franchise value, insurance fund, Loans, savings and loan, swap contract, U.S. dollar, WP.
Current policy challenges analyzed
- Policies to manage recent large inflows of capital while maintaining:
- long-run macroeconomic stability; and
- healthy financial systems.
- Assessment of the impact of capital markets competition on the soundness of banking systems.