Building Blocks for Effective Macroprudential Policies in Latin America: Institutional Considerations

Author/Editor:

Patrick A. Imam ; Erlend Nier ; Luis Ignacio Jácome

Publication Date:

July 1, 2012

Electronic Access:

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Disclaimer: This Working 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

Summary:

An increasing number of countries - including in Latin America - are reforming their financial stability frameworks in the aftermath of the financial crisis, in order to establish a stronger macroprudential policy function. This paper analyzes existing arrangements for financial stability in Latin America and examines key issues to consider when designing the institutional foundations for effective macroprudential policies. The paper focuses primarily on eight Latin American countries, where the institutional arrangements for monetary and financial policies can be classified in two distinct groups: the "Pacific" model that includes Chile, Colombia, Peru, Costa Rica, and Mexico, and the "Atlantic" model, comprising Argentina, Brazil, and Uruguay.

Series:

Working Paper No. 2012/183

Subject:

Banking Financial crises Financial regulation and supervision Financial sector policy and analysis Financial sector stability Macroprudential policy Systemic risk

English

Publication Date:

July 1, 2012

ISBN/ISSN:

9781475505313/1018-5941

Stock No:

WPIEA2012183

Pages:

42

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