Developments in Financial Supervision and the Use of Macroprudential Measures in Central America

December 1, 2011

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

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. Nonetheless, compared with the larger Latin American and selected industrial countries, there is still important scope for CAPDR to enhance financial supervision and regulation. Based on two surveys, and the analysis of the Basel Core Principles, the paper determines that some weaknesses exist in risk-based supervision, and that macroprudential measures have scarcely been deployed.

Subject: Basel Core Principles, Consolidated banking supervision, Financial regulation and supervision, Financial sector policy and analysis, Macroprudential policy instruments, Risk-based supervision

Keywords: Basel Core Principles, Basel III, BCP assessment, BCP compliance index, BCP principle, CAPDR, CAPDR country, capital, Central America, Consolidated banking supervision, financial activity, financial regulation, financial supervision, foreign exchange, Global, Latin America, macroprudential policy, Macroprudential policy instruments, Risk-based supervision, WP

Pages:
29
Volume:
2011
DOI:
https://doi.org/10.5089/9781463927851.001
Issue:
299
Series:
Working Paper No. 2011/299
Stock No:
WPIEA2011299
ISBN:
9781463927851
ISSN:
1018-5941

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