Regulation of Pension Fund Credit Risk: Lessons from the Banking Sector
This article examines the regulatory framework for managing the credit risk of pension funds in Brazil. We believe that the current framework is not very effective at controlling credit risk, and also overly limits the investment possibilities of pension fund managers. We consider the regulatory framework for banks as an alternative approach for future developments, and propose that the rules on credit risk exposure of pension funds and banks be made uniform. The resulting regulatory framework would be more effective and easy to monitor, facilitating the work of external supervision and auditing. Finally, we present a numerical example using real data on six Brazilian pension funds to illustrate the proposal.
Year of publication: |
2007
|
---|---|
Authors: | Herbst, Pedro Americo ; Júnior, Antonio Marcos Duarte |
Published in: |
Brazilian Business Review. - Fundação Instituto Capixaba de Pesquisas em Contabilidade, Economia e Finanças (FUCAPE). - Vol. 4.2007, 2, p. 132-148
|
Publisher: |
Fundação Instituto Capixaba de Pesquisas em Contabilidade, Economia e Finanças (FUCAPE) |
Subject: | pension funds | regulatory framework | credit risk |
Saved in:
freely available
Saved in favorites
Similar items by subject
-
Economic Growth and Integration in Central America
Schipke, Alfred, (2007)
-
(2006)
-
Kingdom of Swaziland; Selected Issues and Statistical Appendix
(2008)
- More ...
Similar items by person
-
Herbst, Pedro Americo, (2006)
- More ...