Systemic Oversight Frameworks in LAC : Current Practices and Reform Agenda

The world financial crisis that started in the US housing market in 2008 brought into evidence deep failures of prudential oversight, linked for the most part to a failure to comprehend and handle systemic risk in a way that could prevent systemic crises. This paper summarizes the responses to the joint World Bank -ASBA survey o the state of systemic oversight in the Latin American and Caribbean financial sectors and reflects on some of the challenges identified by respondents. We found that there is broad consensus among regional financial authorities on the need to enhance the current systemic oversight framework. Improving consolidated supervision to mitigate risk-shifting in conglomerates, adjusting prudential regulations to account for the accumulation of systemic risks, redefining the role of the supervisor to make it more proactive, and improving coordination among local supervisors as well as with foreign supervisors figure preeminently in the regional reform agenda.

Bibliographic Details

Main Authors:	Gutierrez, Eva, Caraballo, Patricia
Language:	English
Published:	2012-01-01
Subjects:	ACCESS TO LENDER, ACCOUNTABILITY, ACCOUNTING, ACCOUNTING FRAMEWORK, AGGREGATE DEMAND, ARBITRAGE, ASSET PRICE, ASSETS, BALANCE SHEET, BALANCE SHEETS, BANK LOANS, BANK SUPERVISORS, BANKING SECTOR, BANKING SUPERVISION, BANKS, BROKERAGE, BROKERAGE HOUSES, BUFFERS, CAPACITY BUILDING, CAPITAL ADEQUACY, CAPITAL ADEQUACY RATIOS, CAPITAL CONTROLS, CAPITAL FLOWS, CAPITAL MARKETS, CAPITAL REQUIREMENT, CAPITAL REQUIREMENTS, CENTRAL BANK, CENTRAL BANK FACILITIES, CENTRAL BANKS, CIVIL CODE, CLEARING HOUSE, COLLATERAL, COMMERCIAL BANKS, CONSOLIDATED SUPERVISION, CONTINGENCY PLANNING, CONTINGENT LIABILITIES, CORPORATE DEFAULT, CORPORATE DEFAULTS, CORPORATE GOVERNANCE, CREDIT CARD, CREDIT COOPERATIVES, CREDIT CRUNCH, CREDIT GROWTH, CREDIT MARKETS, CREDIT RISK, CROSS-BORDER ISSUES, CURRENCY, DEFAULTS, DEPOSIT, DEPOSIT INSURANCE, DEPOSIT INSURANCE SCHEMES, DEPOSITS, DERIVATIVE, DERIVATIVE MARKETS, DERIVATIVES, DERIVATIVES MARKETS, DIRECT ACCESS, DOMESTIC BANK, DOMESTIC LIQUIDITY, EMPLOYMENT, EXCESS LIQUIDITY, EXCHANGE RATE, EXCHANGE RATE FLUCTUATIONS, EXCHANGE RATE VOLATILITY, EXPOSURE, EXTERNAL SHOCKS, FACTORING, FINANCE COMPANIES, FINANCIAL AUTHORITIES, FINANCIAL CONGLOMERATES, FINANCIAL CRISES, FINANCIAL CRISIS, FINANCIAL DEVELOPMENT, FINANCIAL INNOVATION, FINANCIAL INSTABILITY, FINANCIAL INSTITUTIONS, FINANCIAL INTERMEDIARIES, FINANCIAL INTERMEDIARY, FINANCIAL INTERMEDIATION, FINANCIAL LIABILITIES, FINANCIAL PRODUCTS, FINANCIAL REGULATION, FINANCIAL SECTOR, FINANCIAL SECTOR STABILITY, FINANCIAL SECTORS, FINANCIAL SERVICES, FINANCIAL STABILITY, FINANCIAL SYSTEM, FINANCIAL SYSTEM STABILITY, FINANCIAL SYSTEMS, FOREIGN EXCHANGE, FOREIGN LIABILITIES, FUND MANAGEMENT, FUND MANAGERS, GLOBAL INTEGRATION, HEDGE FUNDS, HOLDING, HOLDING COMPANIES, HOLDING COMPANY, HOLDINGS, HOUSING, HOUSING PRICES, HUMAN CAPITAL, ILLIQUIDITY, INFORMATION SHARING, INSTITUTIONAL REFORM, INSTITUTIONAL REFORMS, INSTRUMENT, INSURANCE, INSURANCE COMPANIES, INSURANCE POLICY, INSURANCE PREMIUM, INSURED DEPOSITS, INTEREST RATE, INTEREST RATE POLICY, INTEREST RATES, INTERNAL CONTROLS, INTERNATIONAL BANK, INTERNATIONAL BEST PRACTICES, INTERNATIONAL RESERVES, INTERNATIONAL STANDARDS, INVESTMENT BANKING, INVESTMENT BANKS, INVESTMENT FUND, INVESTMENT FUNDS, INVESTMENT VEHICLES, JURISDICTIONS, KEY CHALLENGE, LAWS, LEGAL FRAMEWORK, LEGAL PROTECTION, LEGAL REFORMS, LENDER, LENDER OF LAST RESORT, LENDING INSTITUTIONS, LENDING REQUIREMENTS, LEVERAGE, LIABILITY, LIABILITY BASE, LIQUIDITY RATIOS, LIQUIDITY REQUIREMENT, LIQUIDITY REQUIREMENTS, LIQUIDITY RISK, LIQUIDITY RISKS, LOAN, MANDATES, MARK-TO-MARKET, MARKET DATA, MARKET DEVELOPMENTS, MARKET DISCIPLINE, MARKET PRICE, MARKET RATES, MATURITY, MERCHANT, MERCHANT BANKING, MICROFINANCE, MICROFINANCE INSTITUTIONS, MONETARY AUTHORITIES, MONETARY AUTHORITY, MONETARY POLICY, MONEY MARKET, MORAL HAZARD, MUTUAL FUND, MUTUAL FUNDS, OFFSHORE BANKS, OPEN ECONOMY, OPERATIONAL INDEPENDENCE, PENSION, PENSION FUND, PENSION FUNDS, PENSIONS, POLICY RESPONSE, PRICE INDICES, PRIVATE SECTOR DEVELOPMENT, PRUDENTIAL REGULATION, PRUDENTIAL REGULATIONS, PRUDENTIAL REQUIREMENTS, PUBLIC UTILITY, QUOTAS, RATING AGENCIES, REAL ESTATE, REAL SECTOR, REDEMPTION, REFORM PROGRAM, REGULATORY BODIES, REGULATORY CAPACITY, REGULATORY FRAMEWORK, REGULATORY REFORMS, REMITTANCES, REPOS, RESERVE, RESERVE REQUIREMENTS, RISK FACTORS, RISK MANAGEMENT, RISK PROFILE, RISK PROFILES, SAFETY NET, SECURITIES, SMALL COUNTRIES, SOLVENCY, STOCK TRADING, SUBSIDIARIES, SUPERVISORY AGENCIES, SUPERVISORY AGENCY, SUPERVISORY POWERS, SURCHARGES, SYSTEMIC CRISES, SYSTEMIC RISK, SYSTEMIC RISKS, TRANSPARENCY, UNDERDEVELOPED CAPITAL MARKETS, UNIVERSAL BANKING, UNIVERSAL BANKS, VOLATILITY,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120110091522 https://hdl.handle.net/10986/3226
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