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Research Article

International Regulation and Supervision: A Solution to Bank Failure in Latin America?

Authors:

Alexandre Minda ,

Stéphanie Truquin

Abstract

During these last two decades, Latin American countries have experienced a large number of banking crises which have affected their whole economy. These crises have prompted a renewed interest in the regulation and supervision of financial and banking systems within multilateral financial institutions. This article gives a non exhaustive account of the factors which have lead to banking crises in Latin America. Macroeconomic instability, the excessive banks risk taking, and the weakness of the regulatory framework are the main sources of banking failures. The existing international agreements – the Basel Accords – to which more and more emerging countries subscribe, are not adapted enough to these countries economic and financial structures. However, the adoption of these Accords by Latin American countries is a move towards a greater supervision of banking systems and a first step towards a better prevention of banking crises.

Durante estas dos últimas decadas, los países latinoamericanos han padecido numerosas crisis bancarias que afectaron sus economías en general. Estas crisis relanzaron en el seno de las instituciones financieras internacionales discusiones en torno a la regulación y vigilancia de los sistemas bancarios en América latina. Este artículo ofrece un recuento no exhaustive de los factores que intervinieron en las crisis bancarias de América Latina. La inestabilidad macroeconómica, el excesivo riesgo tomado por los bancos y los debilidades de la reglementación explican dichas crisis. Los acuerdos internacionales existentes – Acuerdos de Basilea – a los cuales se adhieren cada vez más los países emergentes, no están necesariamente adaptados a su estructura económica y financiera. No obstante, la adopción de estos acuerdos por parte de los países latinoamericanos constituye un paso en la direción de una mayor vigilancia de los sistemas bancarios y de una major prevención de las crisis bancarias.

How to Cite: Minda, A. & Truquin, S., (2005). International Regulation and Supervision: A Solution to Bank Failure in Latin America?. Iberoamericana – Nordic Journal of Latin American and Caribbean Studies. 35(1), pp.9–35. DOI: http://doi.org/10.16993/ibero.170
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Published on 01 Jan 2005.
Peer Reviewed

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