Advancing Financial Development in Latin America and the Caribbean

Author/Editor:

Dyna Heng ; Anna Ivanova ; Rodrigo Mariscal ; Uma Ramakrishnan ; Joyce Wong

Publication Date:

April 7, 2016

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:

This paper examines the state of financial development in the Latin America and Caribbean (LAC) region as well as potential growth and stability implications from further development. The analysis suggests that access to financial institutions has expanded notably in the past decade, and the region compares favorably with other emerging market regions on this dimension. The region, however, continues to lag behind peers on broader financial development, especially with respect to markets, though there is substantial heterogeneity across countries. Financial systems in many LAC countries are also underdeveloped relative to their macroeconomic fundamentals. Further financial development could convey net benefits to the region, provided there is adequate regulatory oversight to prevent excesses.

Series:

Working Paper No. 2016/081

Subject:

English

Publication Date:

April 7, 2016

ISBN/ISSN:

9781484321713/1018-5941

Stock No:

WPIEA2016081

Pages:

32

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