Latin America looking to improve risk practices

Participants attending the Financial Stability Forum (FSF) in Chile this week said there was a need for further reforms to enhance Latin American domestic markets, ease the burden of public sector debt and provide alternative sources of risk management for the private sector.

The FSF also discussed the issue of risk posed by currency mismatches. Although there was a general feeling that policy improvements had already improved growth in the region, FSF participants said further work on macroeconomic policies was required. This included calls for floating exchange rates to facilitate further growth and eradicate mismatches.

The new Basel capital Accord was also on the agenda, with debate centring on whether the necessary preconditions for entry have yet been fulfilled, and how to bring Latin American regulatory, supervisory and risk management practices up to the required standard.

The FSF was established in February 1999 to promote financial stability throughout the international markets. This was the third regional meeting in Latin America, with representatives of 14 countries in attendance, including members of supervisory bodies, regulators and finance ministers. The meeting took place at the Central Bank of Chile in Santiago.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here