The entity highlighted macroeconomic strength, but warned about the Social Security Institute's growing deficit and other risks linked to less cooperation with Venezuela over oil matters.
From a press release issued by the IMF:
This statement summarizes the preliminary findings and recommendations of the mission that visited Managua during April 24-May 5 in the context of the 2017 Article IV consultation.
A bill being promoted by the executive branch seeks to authorize the Bank of Guatemala to finance the capitalization of a bank when it faces problems affecting financial stability.
The aim of this initiative is to adapt the rules on financial supervision and risk control to international standards, to prevent the stability of the domestic financial system from being affected when a bank has liquidity or solvency problems.
A call is being made to professionals in the area of auditing and risk management to attend the first Latin American Seminar on Governance, Risk and Control on April 14 and 15 in Panama.
The Latin American Foundation of Internal Auditors (FLAI) and the Institute of Internal Auditors of Panama (IAI Panama), in partnership with the Institute of Global Internal Auditors (IIA Global) is convening the first Latin American Seminar on Governance, Risk and Control - SELAT GRC 2016 , on April 14 and 15 to be held in the Hotel Riu Panama Plaza, reported Panamaamerica.com.pa.
The globalization of supply chains, and outsourcing of services and production, exposes companies to new risks.
Humberto Breccia, from the ADEN Business School, discusses the processes that need to be implemented by companies so as to "minimize losses and maximize the value perceived by customers."
From the questions How to do it? Where to begin? How to control it?, comes the logic of the steps required to manage operational risk:
From the merger of three former superintendents: Securities, Pensions and Financial System, emerges the strengthened SFF, which will focus on risk management.
The newly created Superintendency of the Financial System (SFF in Spanish), which encompasses the previous three superintendencies (securities, pensions and financial system) has started its first project, the creation of four new regulations aimed at financial risk.
The World Bank has approved a loan for development policies to strengthen the country's ability to implement its Risk Management Program for Natural Disasters.
A press release from World Bank (WB) reads:
This operation provides immediate funds to Panama after a major natural disaster, allowing the Government to supplement their own resources and respond quickly to emergencies and other requirements for risk reduction.
New risk management regulations are to be observed by banks, finance companies and offshore entities.
The regulations, consisting of five chapters, have been published by the Monetary Board (Junta Monetaria).
“Risk management, according to the resolution, includes the following types of risk: tolerance, credit, liquidity, market, operational, country, lines of business and prudential limits. " said an article on the Prensa Libre website.
Investors should ensure that those who manage their assets must have sound processes and investment controls.
Summary of Fitch's special report "Know Your Manager: Investor's Guide to Identifying a Robust Investment Process.
Current level of macroeconomic uncertainty and market volatility has increased the need for investment processes and stronger controls for asset managers as well as a clear understanding of these processes by the investor.
Guatemala's Banking Superintendent submitted new regulations for approval before the Central Bank's Monetary Board.
Edgar Barquín, head of the Superintendence, explained that the proposed regulation intends to comply with Basel accords and strengthen risk-based supervision.
Barquín added that "... they want banks to execute strategies which include credit profiling, policies for risk management and adequate liquidity controls".
These were on the rise until July when they started to fall.
There was a general fall in the price of commodities in July; corn (-30%), Oil (-19%), Natural Gas (-47%), Coffee (-11%), and so forth (percentage change for June 26 to July 29)
Explanations for this change range from subliminal messages from the Commodity Futures Trading Commission (CFTC) to signs that confirm a recession.
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