Regulatory Lessons from the Crisis of Costa Rica's Mutual Fund Industry

 
Author/Editor: Carvajal, Ana
 
Publication Date: December 01, 2006
 
Electronic Access: Free Full text (PDF file size is 173KB).
Use the free Adobe Acrobat Reader to view this PDF file

 
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: In 2004, the mutual fund industry of Costa Rica experienced a massive run by investors that reduced the industry to half its size in a month. This paper explores how weaknesses in the regulatory framework played a role in the crisis and draws lessons for developing countries. The analysis of events demonstrates the need for developing countries to design a multi-pillar framework for securities regulation as well as to strengthen financial literacy and capacity building. At the micro level it shows the importance of market conduct rules and the challenges that the implementation of mark-to-market poses for developing markets.
 
Series: Working Paper No. 06/288
Subject(s): Securities markets | Costa Rica | Stock markets | Securities regulations | Financial systems | Financial crisis | Emerging markets | Developing countries

Author's Keyword(s): Collective investment schemes | mutual funds | securities markets
 
English
Publication Date: December 01, 2006
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA2006288 Pages: 26
Price:
US$18.00 (Academic Rate:
US$18.00 )
 
 
Please address any questions about this title to publications@imf.org