Front Matter

Front Matter Page

IFM Country Report No. 15/143

COLOMBIA

SELECTED ISSUES PAPER

June 2015

This Selected Issues Paper on Colombia was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on May 7, 2015. The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of Colombia or the Executive Board of the IMF.

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Front Matter Page

COLOMBIA

SELECTED ISSUES

May 7, 2015

Approved By

Western Hemisphere Department

Prepared by Valerie Cerra, Izabela Karpowicz, Zulima Leal, Daniel Rodríguez-Delgado, Kristine Vitola (all WHD), Mohamed Afzal Norat (MCM), and Christina Kolerus (SPR).

Contents

  • OVERVIEW

  • COLOMBIA’S EXPERIENCE WITH INCLUSIVE GROWTH

  • A. Introduction

  • B. Pro-Poor Growth

  • C. Limited Inclusiveness of Economic Growth

  • D. Some key Drivers of the Recent Decline in Income Inequality

  • E. What Could be Behind the Still High Income Inequality?

  • F. Conclusion

  • APPENDIX

  • 1. Selected Social Programs in Colombia

  • References

  • THE ROLE OF LABOR FRICTIONS IN COLOMBIA’S RECENT ECONOMIC PERFORMANCE

  • A. Introduction

  • B. Business Cycle Accounting Methodology

  • C. Results

  • D. Conclusion

  • References

  • UNEMPLOYMENT-GROWTH TRENDS IN COLOMBIA AND SELECTED EMERGING MARKETS

  • A. Conclusion

  • References

  • YOUTH ENTREPRENEURSHIP INITIATIVES

  • A. Introduction

  • B. Government Initiatives

  • C. Other National and International Efforts

  • References

  • INFRASTRUCTURE INVESTMENT

  • FIGURE

  • 1. Stakeholders and Interrelations in 4G Contracts

  • TABLES

  • 1. Transport Infrastructure Financing

  • 2. Distribution of Risks

  • References

  • INFORMAL FINANCE AND FINANCIAL INCLUSION POLICIES

  • A. Introduction

  • B. Informal Finance in Recent Colombian Surveys and Literature

  • C. Latest Financial Inclusion Initiatives

  • D. Conclusion

  • APPENDIX

  • 1. Regression Results

  • References

  • 2012 FSAP RECOMMENDATIONS: STATUS AND IMPLEMENTATION REPORT

  • A. Independence and Legal Protection of Supervisory Staff

  • B. Macroprudential Policy: the Financial Security System

  • C. Holding Companies of Financial Conglomerates

  • D. International Financial Reporting Standards (IFRS)

  • E. Standards for External Auditors

  • F. Basel II Pillar 2 Supervisory Framework

  • G. Comprehensive Risk Management for Banks and Banking Groups

  • H. Guidelines to Undertake ICAAP at Bank and Conglomerate Level

  • I. Large Exposure Limits, Number of Exceptions and Limits for Related Parties

  • J. Notification of Public Meetings and Extraordinary Actions

  • K. Oversight of Broker-Dealers and Collective Investment Schemes

  • L. Bank Corrective Action and Resolution Framework: Legal Framework to Expedite Resolution and Internationally Accepted Principles

  • M. Financial Transaction Tax

  • N. Issuance of Short-Term Government Securities

  • O. Range of Counterparties in Open Market Operations

  • P. Liquidity Standards for Broker-Dealers and Other Non-Bank Financial Institutions (NBFIs)

  • Q. Stress Testing of Broker-Dealers and Other NBFIs

  • R. Prudential Requirement and International Standards

  • S. Financial Consumer Protection

  • BANKS’ CAPITAL

  • A. Introduction

  • B. Colombian and Regional Banks Capital Comparison

  • C. Macrofinancial Implications

  • D. Basel Standards and Sequencing of Capital Stacks

  • E. Sequencing of Colombia’s Capital Stack

  • F. Conclusion

  • BOX

  • 1. Basel II – Pillar 2

  • FIGURES

  • 1. Basel II and Basel III Capital Stacks

  • 2. Prioritizing Basel Components

  • 3. Colombia’s Banks’ Current Capital Stack

  • References

Colombia: Selected Issues Paper
Author: International Monetary Fund. Western Hemisphere Dept.