Superpowers of Costa Rica's Central Bank create discrepancies

The regulations carried out by the Board of Directors of the National Supervision of the Financial System (Conassif) has a cost to Costa Ricans of about 9 billion colons. The resources come from the Central Bank and a charge on financial transactions.

Saturday, April 26, 2008

This expense is inflationary because the Central Bank issues money to cover the costss of the entities that are involved in the supervision and regulation of the financial system.
Currently 80 per cent of the budget of the superintendent's offices and of Conassif is financed by money from the Central Bank and 20 per cent from fees of groups being regulated.

More on this topic

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Capitalization of Costa Rica's Central Bank would cause distortions

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The Law of Capitalization of the Central Bank is being scrutinized by bankers and analysts, many of whom question the benefits attributed to it as an inflation-fighting mechanism.

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Costa Rican Central Bank seeks new powers

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Banco Popular opposes the restriction because of what it describes as the social content of much of its lending.

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