Developments in Financial Supervision and the Use of Macroprudential Measures in Central America
IMF Working Papers, December 1, 2011
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Bibliographic details
- Authors: Mynor Meza, Fernando L Delgado
- Published: December 1, 2011
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781463927851.001
Executive summary and main findings
- Improvements in financial regulation and supervision in the Central American region (CAPDR) have strengthened financial stability.
- Prudential instruments with potential macroeconomic effects have been introduced.
- Compared with the larger Latin American and selected industrial countries, there remains important scope for CAPDR to enhance financial supervision and regulation.
- Based on two surveys and the analysis of the Basel Core Principles, the paper finds:
- Some weaknesses exist in risk-based supervision.
- Macroprudential measures have scarcely been deployed.
Analysis and methodology
- Evidence sources:
- Two surveys (unspecified in this summary).
- Analysis of the Basel Core Principles (BCP).
- Focus areas and subject tags used in the analysis:
- Basel Core Principles, Consolidated banking supervision, Financial regulation and supervision, Financial sector policy and analysis, Macroprudential policy instruments, Risk-based supervision.
Implications highlighted by the paper
- CAPDR countries have made measurable progress in regulation and supervision that supports financial stability.
- There is still important scope to:
- Enhance risk-based supervision.
- Broaden deployment of macroprudential measures to address systemic risks.
- The assessment is comparative: CAPDR progress is positive but lags larger Latin American and selected industrial countries.
Developments in Financial Supervision and the Use of Macroprudential Measures in Central America, IMF Working Paper No. 2011/299