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

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ESRB narrows its macro-prudential tools

The European Systemic Risk Board is about to announce a slimmed-down list of potential macro-prudential tools, but who has the power to use them is still the subject of debate. By Michael Watt

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