The recent financial crisis has forced a rethink of banking regulation and supervision and the role of financial innovation. This paper develops a model where prudent banks may signal their type through high capital ratios. Capital regulation may ensure separation in equilibrium, but deposit...

Improved microfinance strategies in Peru have increased credit access for microentrepreneurs. To establish effective national credit reporting systems elsewhere in the region, ensured universal reporting cooperation, reliable identification, privacy and consumer protection are needed.

As the MFI industry matures, the necessity of dealing with foreign exchange risk becomes more urgent. Identifying possible solutions to foreign currency risk before they become a critical priority will give MFIs more options in the future.

US banks and credit unions are determined to have Latin American immigrants as important and permanent members of their customer base. Community groups, government, and US business interests are aligning through the remittance market to the benefit of Latin American immigrants and their families.

As entrepreneurs explore markets abroad, migrant workers driven by family values search abroad for comparative advantages. The challenge is to provide adequate financial infrastructure for families to use remittances more effectively.

Remittances in the Andes finance investment and growth, reduce poverty, complement national savings, and are a source of foreign exchange. Properly mobilized remittances can contribute to increased investment in housing, in human capital and help to finance micro and small-scale firms.