Systemically important financial institutions in Latin America - a Primer

• Main Authors: JACOB KLEINOW, MARIO GARCIA MOLINA, ANDREAS HORSCH
• Format: Article
• Language: English
• Published: Editora 34 2016-06-01
• Series: Brazilian Journal of Political Economy
• Subjects: América Latina; IFSI; risco sistêmico; too-big-to-fail; instabilidade; regulamentação bancária
• Online Access: http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572016000200410&lng=en&tlng=en

ABSTRACT Financial institutions show a characteristic risk exposure and vulnerability, making them prone to instability. Financial systems in Latin America, however, were left largely unscathed by the global financial crisis starting in 2008. This state-of-the-art survey provides an in-depth analysis on the identification and regulation of systemically important financial institutions (SIFIs). While Latin America benefits from its rich historical experience in managing systemic risks, we find the problem of SIFIs to be still underestimated. However, there are first efforts to cope with SIFIs in science and particularly Latin American supervisors and regulators are starting to take the threat posed by SIFIs seriously.