Advancing Financial Development in Latin America and the Caribbean

33 Pages Posted: 27 Sep 2016

See all articles by Dyna Heng

Dyna Heng

International Monetary Fund (IMF)

Anna Ivanova

International Monetary Fund (IMF) - European Department

Rodrigo Mariscal

El Colegio de Mexico; Mexico's Ministry of Finance

Uma Ramakrishnan

International Monetary Fund (IMF) - Policy Development and Review Department

Joyce Wong

International Monetary Fund (IMF)

Date Written: April 2016

Abstract

This paper examines the state of financial development in the Latin America and Caribbean (LAC) region as well as potential growth and stability implications from further development. The analysis suggests that access to financial institutions has expanded notably in the past decade, and the region compares favorably with other emerging market regions on this dimension. The region, however, continues to lag behind peers on broader financial development, especially with respect to markets, though there is substantial heterogeneity across countries. Financial systems in many LAC countries are also underdeveloped relative to their macroeconomic fundamentals. Further financial development could convey net benefits to the region, provided there is adequate regulatory oversight to prevent excesses.

Keywords: Finanical, Deepening, Latin America, Caribbean, Financial Development Index

JEL Classification: G10, G18, G20, O16, O40

Suggested Citation

Heng, Dyna and Ivanova, Anna and Mariscal, Rodrigo and Ramakrishnan, Uma and Wong, Joyce, Advancing Financial Development in Latin America and the Caribbean (April 2016). IMF Working Paper No. 16/81. Available at SSRN: https://ssrn.com/abstract=2844159

Dyna Heng (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Anna Ivanova

International Monetary Fund (IMF) - European Department ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Rodrigo Mariscal

El Colegio de Mexico ( email )

Camino al Ajusco 20
Col. Pedregal de Santa Teresa
Mexico, City, 10740
Mexico

HOME PAGE: http://www.colmex.mx/

Mexico's Ministry of Finance ( email )

Av. Insurgentes Sur No. 1971
Torre III, Piso 9
Mexico City, CDMX 01020
Mexico

Uma Ramakrishnan

International Monetary Fund (IMF) - Policy Development and Review Department ( email )

700 19th St. NW
Washington, DC 20431
United States

Joyce Wong

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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