Cover IMF Working Papers
Policy Instruments to Lean Against the Wind in Latin America
Author: Mr. G. Terrier, Mr. Rodrigo O. Valdes, Mr. Camilo E Tovar Mora, Mr. Jorge A Chan-Lau, Carlos Fernandez Valdovinos, Ms. Mercedes Garcia-Escribano, Mr. Carlos I. Medeiros, Man-Keung Tang, Miss Mercedes Vera Martin, and W. Christopher Walker
Series:
IMF Working Papers
Volume/Issue:
Volume 2011: Issue 159
Language:
English
Publication Date:
01 Jul 2011
DOI:
https://doi.org/10.5089/9781455297726.001
ISBN:
9781455297726
ISSN:
1018-5941
Pages:
113
Keywords:
WP; bank; RR; credit risk; rate; FX credit risks; DTI limit; FX lending; RR regulation; FX exposure; FX risk; Reserve requirements; Loans; Capital inflows; Mortgages; Global; Europe; Eastern Europe; North America; Central America
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund