Assessing Banking Sector Soundness in a Long-Term Framework The Case of Venezuela

This paper combines financial soundness indicators (FSIs) and stress-testing methodologies to provide a broad assessment of the soundness of Venezuela's banking sector, based on a diagnosis of its structural and transient shortcomings. While the Venezuelan banking sector appears sound under cur...

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Bibliographic Details
Main Author: Blavy, Rodolphe
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2006
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Assessing Banking Sector Soundness in a Long-Term Framework  |b The Case of Venezuela  |c Rodolphe Blavy 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2006 
300 |a 31 pages 
651 4 |a Venezuela, República Bolivariana de 
653 |a Banks 
653 |a Capital adequacy requirements 
653 |a Nonperforming loans 
653 |a Monetary economics 
653 |a Loans 
653 |a Banks and Banking 
653 |a Credit 
653 |a Asset requirements 
653 |a Monetary Policy, Central Banking, and the Supply of Money and Credit: General 
653 |a Financial services law & regulation 
653 |a Financial Institutions and Services: Government Policy and Regulation 
653 |a Commercial banks 
653 |a Micro Finance Institutions 
653 |a Mortgages 
653 |a Money and Monetary Policy 
653 |a Banks and banking 
653 |a Depository Institutions 
653 |a Finance 
653 |a Banking 
653 |a Industries: Financial Services 
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520 |a This paper combines financial soundness indicators (FSIs) and stress-testing methodologies to provide a broad assessment of the soundness of Venezuela's banking sector, based on a diagnosis of its structural and transient shortcomings. While the Venezuelan banking sector appears sound under current favorable economic conditions, it remains significantly vulnerable to cyclical downturns-which have been severe in the past. Banks are particularly exposed to interest rate and credit risks. This suggests that the strong FSIs may be partly the result of a conjunctural credit boom in the context of capital controls and very low real interest rates