Long-term Finance in Latin America: A Scoreboard Model
Theory and empirical work have shown that long-term finance is critical for households, firms and government and for the overall development of the economy. The development of efficient and sustainable long-term financial markets, however, depends on macroeconomic stability and an effective institutional framework. Policy initiatives, including tax policy, regulation and competition policies can also improve the availability of long-term finance within these more fundamental constraints. However, country characteristics including size and demographic structure also play an important role. When comparing the provision of long-term finance across countries, it is important to take into account both structural characteristics and long-term policy constraints. A scoreboard for long-term finance in Latin America is suggested with indicators comparing different dimensions of long-term finance. Specifically, the paper suggests several indicators of the depth and inclusiveness of long-term financial markets, to be benchmarked according to country characteristics, and several policy variables, to be included in a scoreboard for long-term finance in Latin America.
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| Format: | Discussion Papers & Presentations biblioteca |
| Language: | English |
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Inter-American Development Bank
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| Subjects: | Financial Service, Financial System, Financial Bond, Housing Finance, Taxation, Small Business, Long-Term Finance, G10 - General Financial Markets: General, G18 - Government Policy and Regulation, G21 - Banks • Depository Institutions • Micro Finance Institutions • Mortgages, G22 - Insurance • Insurance Companies • Actuarial Studies, G23 - Non-bank Financial Institutions • Financial Instruments • Institutional Investors, G28 - Government Policy and Regulation, benchmarking;Latin America;long-term finance, |
| Online Access: | http://dx.doi.org/10.18235/0007018 https://publications.iadb.org/en/long-term-finance-latin-america-scoreboard-model |
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| Summary: | Theory and empirical work have shown that long-term finance is critical for households, firms and government and for the overall development of the economy. The development of efficient and sustainable long-term financial markets, however, depends on macroeconomic stability and an effective institutional framework. Policy initiatives, including tax policy, regulation and competition policies can also improve the availability of long-term finance within these more fundamental constraints. However, country characteristics including size and demographic structure also play an important role. When comparing the provision of long-term finance across countries, it is important to take into account both structural characteristics and long-term policy constraints. A scoreboard for long-term finance in Latin America is suggested with indicators comparing different dimensions of long-term finance. Specifically, the paper suggests several indicators of the depth and inclusiveness of long-term financial markets, to be benchmarked according to country characteristics, and several policy variables, to be included in a scoreboard for long-term finance in Latin America. |
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