This paper analyzes whether dynamic provisioning systems act as a dampener -as intended- or as a buffer. After briefly reviewing the literature, we explain the rationale for dynamic provisions and analyze the experience of three of the few countries that adopted them: Spain, Colombia and Peru....

In this paper we explore some lessons from the Spanish housing boom and the incipient bust from the point of view of the usefulness of the regulatory approach, with particular regard to dynamic provisions and the regulatory treatment of securitisation. First, we describe the main features of the...

We find empirical evidence that the Chinese banking system has benefited from the entry of foreign investors through higher profitability and increased efficiency of the banking system. Foreign partcipation, which consists of a minority stake in a Chinese bank (in contrast to the typical pattern...

The aim of this paper is to review the experience of various dual-currency economies and analyze the main challenges faced by policymakers in formulating and conducting monetary policy. To that end, it distinguishes between countries with growing dollarization and those which have managed to...

Tras analizar conjuntamente la evolucion de las exportaciones de los principales paises latinoamericanos en la ultima decada y examinar caso a caso los determinantes del desempeno de cada pai­s, este estudio concluye que la competitividad del sector manufacturero en la mayoria de los paises...

Given that commodity export concentration is likely to be unhelpful for economic development, we then ask the question of whether Latin America has been experiencing a more pronounced concentration of such exports. We then use different indicators to measure such concentration. Our measurements...

We estimate a system of equations to analyze whether bilateral trade and financial linkages influence business cycle synchronization directly and/or indirectly. Our paper builds upon the existing literature by using bilateral trade and financial flows for a small, open economy (Spain) as...

In this paper we empirically examine the extent and properties of production sharing in Latin and North America as well as that in East Asia. In 2006, exports of parts and components from Latin and North America constituted 29.7% of the region’s exports of manufactured goods to...

The financial crisis of 2007 and 2008 has drawn the attention of regulators and market participants to the severe consequences of procyclicality in the financial system. While this had already been a concern during preparations for the introduction of Basel II, it seems that much still needs to...

This paper reviews the theoretical and empirical literature explaining financial FDI from the perspective of the investing country (home). We conclude that the existing theoretical paradigms need to be adapted to explain the recent surge in international banks’ local operations in...