Advancing Financial Development in Latin America and the Caribbean

By Dyna Heng, Anna Ivanova, Rodrigo Mariscal, Uma Ramakrishnan, Joyce Wong

April 7, 2016

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Dyna Heng, Anna Ivanova, Rodrigo Mariscal, Uma Ramakrishnan, and Joyce Wong. Advancing Financial Development in Latin America and the Caribbean, (USA: International Monetary Fund, 2016) accessed July 18, 2025

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.

Subject: Banking, Financial institutions, Financial markets, Financial sector development, Market capitalization, National accounts, Personal income, Securities, Stock markets

Keywords: Asia and Pacific, Capital account openness, Caribbean, Deepening, Efficiency gap, Exchange regime, FD market, Financial Development Index, Financial sector development, Finanical, GDP, Global, Latin America, Market, Market capitalization, Market development, Market efficiency, Mutual fund, Personal income, Securities, Stock markets, WP

Publication Details

Pages:

32
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2016/081
Stock No:

WPIEA2016081
ISBN:

9781484321713
ISSN:

1018-5941

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