Policy Instruments to Lean Against the Wind in Latin America

This paper reviews policy tools that have been used and/or are available for policy makers in the region to lean against the wind and review relevant country experiences using them. The instruments examined include: (i) capital requirements, dynamic provisioning, and leverage ratios; (ii) liquidity...

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Bibliographic Details
Main Author: Terrier, G.
Other Authors: Chan-Lau, Jorge, Fernandez Valdovinos, Carlos, Garcia-Escribano, Mercedes
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2011
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Policy Instruments to Lean Against the Wind in Latin America  |c G. Terrier, Rodrigo Valdes, Camilo Tovar Mora, Jorge Chan-Lau, Carlos Fernandez Valdovinos, Mercedes Garcia-Escribano, Carlos Medeiros, Man-Keung Tang, Mercedes Vera Martin, W. Christopher Walker 
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300 |a 113 pages 
651 4 |a Peru 
653 |a Banks 
653 |a Finance 
653 |a Industries: Financial Services 
653 |a Banks and banking 
653 |a Reserve requirements 
653 |a Exports and Imports 
653 |a Mortgages 
653 |a International Lending and Debt Problems 
653 |a Foreign Exchange 
653 |a Capital inflows 
653 |a Financial risk management 
653 |a Capital and Ownership Structure 
653 |a Goodwill 
653 |a Banking 
653 |a Financial Risk and Risk Management 
653 |a Financing Policy 
653 |a Foreign exchange 
653 |a Depository Institutions 
653 |a State supervision 
653 |a Short-term Capital Movements 
653 |a Monetary economics 
653 |a Financial institutions 
653 |a Value of Firms 
653 |a Current Account Adjustment 
653 |a Micro Finance Institutions 
653 |a Balance of payments 
653 |a Currency 
653 |a Financial Institutions and Services: Government Policy and Regulation 
653 |a International economics 
653 |a Loans 
653 |a Banks and Banking 
653 |a Monetary policy 
653 |a Central Banks and Their Policies 
653 |a Capital movements 
653 |a Monetary Policy 
653 |a Money and Monetary Policy 
653 |a Financial services law & regulation 
700 1 |a Chan-Lau, Jorge 
700 1 |a Fernandez Valdovinos, Carlos 
700 1 |a Garcia-Escribano, Mercedes 
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520 |a This paper reviews policy tools that have been used and/or are available for policy makers in the region to lean against the wind and review relevant country experiences using them. The instruments examined include: (i) capital requirements, dynamic provisioning, and leverage ratios; (ii) liquidity requirements; (iii) debt-to-income ratios; (iv) loan-to-value ratios; (v) reserve requirements on bank liabilities (deposits and nondeposits); (vi) instruments to manage and limit systemic foreign exchange risk; and, finally, (vii) reserve requirements or taxes on capital inflows. Although the instruments analyzed are mainly microprudential in nature, appropriately calibrated over the financial cycle they may serve for macroprudential purposes