Lot of attention on financial innovation

Regulation, surveillance, and supervision of the financial systems in Central America and the Dominican Republic.

Tuesday, February 3, 2009


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International financial innovation has become one of the factors behind the current global financial crisis. According to estimates, almost 78% of global liquidity is concentrated in derivative instruments , which have come to represent at least 94% of the global GDP. On the other hand, high powered money, only 1% of global liquidity, constitutes 9% approximately (11% and 28.4% respectively for the Central American region and the Dominican Republic in 2006).

The above illustrates the high level of leverage that is possible in financial markets at the global level and even though it is not comparable with regional levels, the observation is not irrelevant, especially if the probability that a payment system exists in the region that is not subject to surveillance or supervision and for which there is a wide range of financial services being offered in addition to loans and deposits...

More on this topic

Risk indicators for banks in Costa Rica made flexible

October 2008

The objective of the Superintendence of Financial Entities is to strengthen bank liquidity in order to prevent being affected by the global crisis.

Superintendent, Oscar Rodriguez, justified the decision to ease some risk indicators for financial entities in order to allow them to "raise" more liquidit, since they do not know how great the impact of the global financial crisis will be.

Region Takes Measures Against Global Crisis

February 2012

Central America and the Dominican Republic have agreed together to ensure financial liquidity, create mechanisms for monitoring risk management and financial systems, as well as taking measures against the effects of the euro zone crisis and the weakness of U.S.

Carlos Acevedo, president of the Central Reserve Bank of El Salvador, told Prensalibre.com that "we are preparing a regional financial system and shielding mechanisms."

IMF to Open New Regional Technical Assistance Center

March 2009

The IMF will open in May 2009 in Guatemala City, its new Central America, Panama, and the Dominican Republic Technical Assistance Center (CAPTAC-DR).

“CAPTAC-DR is an important component of the IMF’s far-reaching reforms that will enable the Fund to respond more effectively to the emerging challenges of the global economy,” said Murilo Portugal, Deputy Managing Director of the IMF.

Central America as Seen by the IMF

July 2015

"The ongoing economic recovery in the United States and persistence of relatively low oil prices will provide favorable tailwinds to the region.Because of supply constraints, the region is expected to maintain a moderate pace of growth in coming years."

From the press release by IMF:

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