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This paper raises fundamental questions about how banks in Latin America ought to be supervised. The concentration of wealth holders in Latin America and the equity markets' resulting illiquidity permit investors who control banks to subvert the intent of capital requirements, even when the bank...
Persistent link: https://www.econbiz.de/10010943658
This paper complements previous studies by arguing that the low private savings ratio in Latin America can be associated with the limited confidence of households and businesses in domestic financial institutions. Previous studies have established a relationship between private savings and...
Persistent link: https://www.econbiz.de/10010944067
This paper considers whether reserve requirements have been effective in controlling excessive liquidity growth. It … expansion of risky bank credit that often accompanies excessive liquidity expansion. …
Persistent link: https://www.econbiz.de/10010944354
The 2008-09 global economic crises have shown that no country is immune to external challenges. When policy controls are missing or not used efficiently, crises can reverse progress even in advanced economies. This unexpected outcome has increased concerns about the ability of governments in...
Persistent link: https://www.econbiz.de/10010829327
Financial liberalization and integration have generated disappointing results. They were supposed to set up a win-win situation: capital would flow from capital-abundant, low-return, aging industrial countries to capital-scarce, high-return, young emerging countries. Growth in receiving...
Persistent link: https://www.econbiz.de/10010944233
The experience of a large number of countries since the mid-1970s has demonstrated the limited potential for activist monetary and fiscal policies to influence real macroeconomic performance on a sustained basis. Given the central role of the financial sector in pricing and allocating capital...
Persistent link: https://www.econbiz.de/10010944404
unable to perform this function. During the COVID-19 crisis, banks sustained liquidity shocks, as deposits were withdrawn to … purpose of this study is to evaluate the effectiveness of liquidity creation as a main force, in conjunction with other … individually or in conjunction with liquidity creation during the COVID-19 financial crisis. We used bank financial data from a …
Persistent link: https://www.econbiz.de/10014279890
Persistent link: https://www.econbiz.de/10009664621
How do the liquidity functions of banks affect investment and growth at different stages of economic development? How … issues using an overlapping generations growth model where agents, who experience idiosyncratic liquidity shocks, can invest … in a liquid storage technology or in a partially illiquid Cobb Douglas technology. By pooling liquidity risk, banks play …
Persistent link: https://www.econbiz.de/10005827489
How do the liquidity functions of banks affect investment and growth at different stages of economic development? How … illiquid Cobb Douglas technology. By pooling liquidity risk, banks play a growth enhancing role in reducing inefficient … liquidation of long term projects, but they may face liquidity crises associated with severe output losses. Middle income …
Persistent link: https://www.econbiz.de/10005650464