Policy Instruments to Lean Against the Wind in Latin America
IMF Working Papers, July 1, 2011
Source details
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- Policy Instruments to Lean Against the Wind in Latin America
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Bibliographic details
- Authors: G. Terrier, Rodrigo O. Valdes, Camilo E Tovar Mora, Jorge A Chan-Lau, Carlos Fernandez Valdovinos, Mercedes Garcia-Escribano, Carlos I. Medeiros, Man-Keung Tang, Mercedes Vera Martin, W. Christopher Walker
- Published: July 1, 2011
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781455297726.001
Summary
- This paper reviews policy tools that have been used and/or are available for policy makers in the region to lean against the wind and review relevant country experiences using them.
- Although the instruments analyzed are mainly microprudential in nature, appropriately calibrated over the financial cycle they may serve for macroprudential purposes.
Instruments examined
- (i) capital requirements, dynamic provisioning, and leverage ratios
- (ii) liquidity requirements
- (iii) debt-to-income ratios
- (iv) loan-to-value ratios
- (v) reserve requirements on bank liabilities (deposits and nondeposits)
- (vi) instruments to manage and limit systemic foreign exchange risk
- (vii) reserve requirements or taxes on capital inflows
Authors and publication
- By G. Terrier, Rodrigo O. Valdes, Camilo E Tovar Mora, Jorge A Chan-Lau, Carlos Fernandez Valdovinos, Mercedes Garcia-Escribano, Carlos I. Medeiros, Man-Keung Tang, Mercedes Vera Martin, W. Christopher Walker
- July 1, 2011
Subjects and keywords
- Subject: Balance of payments, Banking, Capital inflows, Financial institutions, Foreign exchange, Loans, Monetary policy, Mortgages, Reserve requirements
- Keywords: bank, Capital inflows, Central America, credit risk, DTI limit, Eastern Europe, Europe, FX credit risks, FX exposure, FX lending, FX risk, Global, Loans, Mortgages, North America, rate, Reserve requirements, RR, RR regulation, WP