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Policy Instruments to Lean Against the Wind in Latin America, 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

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
Table Of Contents
Cover; Abstract; Contents; I. Policy Instruments to Lean against the Wind in Latin America; A. Overview; Table 1: Instruments, Proposals, and Objectives; II. Capital Requirements, Leverage Ratios, Countercyclical Capital Buffers and Dynamic Provisions; A. Introduction; B. The Tools and Their Objectives: Solvency and Leaning Against the Wind; Figure 1. Capital and Provisions; Table 1. Basel II and Basel III: Capital Requirements; Boxes; II. 1. Accounting Treatment of Provisions and Capital; C. Implications for Latin America
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (114 p.)
Specific Material Designation
Form Of Item

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