|
This is a valuable work on a subject of great interest
to Latin America: development of the financial system. A strong, secure
financial system not only prevents costly crises, but also plays a central
role in promoting sustained growth. This book focuses on the causes of
banking crises in the region and proposes ways to solve them. It also
examines banking performance in the 1990s, changes in the banking structure,
and the challenges of developing safe, competitive banking systems. Anyone
interested in the development of more crisis-resistant financial systems
that can contribute to growth has a lot to learn from this important book.
It is a remarkable contribution by the IDB.
Vittorio Corbo
President, Central Bank of Chile
This report constitutes a remarkable achievement. It
provides a lucid and timely discussion of key issues in banking credit
in Latin America by appropriately placing regional developments in the
international context. Relevant questions are addressed through state-of-the-art
empirical and theoretical analysis, and presented in a most accessible
and readable way. The discussion is as rigorous as it is balanced, always
well grounded on a wealth of evidence, and policy recommendations are
sound and practical. Issues in banking system stability are revisited
with fresh eyes, particularly with respect to the links between sudden
stops in capital inflows, financial dollarization, and real exchange
rate fluctuations. But the analysis goes well beyond that, providing
substantial new evidence of key issues in banking structure and credit
access for small and medium enterprises. This type of publication is
long overdue.
Augusto de la Torre
Senior Regional Financial Sector Advisor,
World Bank
This important study by the IDB focuses on exactly the right issue:
why financial systems in the Latin American region are so volatile and
unable to allocate credit to its most productive uses. Getting the financial
and banking system to work well is a key to development in the region,
and this study provides a highly useful framework for thinking about
how this can be done.
Frederic Mishkin
Alfred Lerner Professor of Banking and Financial Institutions,
Columbia University
An excellent study of the banking sector in Latin America,
Unlocking Credit offers important lessons for policymakers interested
in reform. Although the report takes a comprehensive look at all the
issues, it is far more than a survey. It is written in accessible language,
has new and interesting facts, and manages to bring the diverse elements
of the analysis together into a broad, compelling message. This book
is a must read for anyone interested in financial sector reform or Latin
America.
Raghuram Rajan
Economic Counselor and Director of the Research Department,
International Monetary Fund
I commend the economics research team at the Inter-American
Development Bank for addressing such an important topic for economic
development. Open, competitive and well-supervised banking systems are
essential to sustained economic growth. Many countries have experienced
banking crises over the years, involving substantial economic cost and
disruption. Pursuit of soundness in the banking sector involves the
good will and expertise of many players in the private and public sectors,
and it requires full analytical support as provided in this book.
John B. Taylor
Under Secretary for International Affairs
U.S. Department of the Treasury
|
