Posts Tagged ‘financial system’

Latin America Markets

Wednesday, February 20th, 2013

But in addition to reforms in domestic financial markets, in Latin America it was advancing in the regional integration of securities markets. A first attempt that had failed to reach fruition Mexico stock markets staged it and Brazil who sought to integrate their operative (failed to agree to unify accounting criteria). For the month of August last year, in one of my articles this Alliance can benefit Peru and Colombia commented them the initiative between Peru and Colombia integrate their equity markets to move then to a later stage of integration of its fixed-income markets at an early stage. But both the goal of integration in the markets of Brazil and Mexico as well as the integration between Peru and Colombia agreement, were to be more ambitious as they included the later incorporation of stock markets in other Latin American countries within the integration agreement. It is clear that beyond the circumstantial temporary suspension of some of the reform initiatives, the Latin American financial system is progressing towards a radical change that will provide depth to finance the sustainable growth of the region. This reform process that has been initiated, will continue to force outdated once the crisis.

The development of the financial system for the countries of the region appears as a necessary condition to achieve a proper economic development, enhance its growth and to make them more resistant to shocks external. It is demonstrated the existence of a relationship of back and forth between economic growth and development of the financial system. So that will not be strange after the crisis, Latin American stock markets can advance in its integration and achieve a growth and development that put any of them at the level of more developed securities markets.

Latin American Governments

Monday, February 18th, 2013

Why has the crisis impeded the development of the Latin American financial system? Buenos Aires, February 2, 2009 the international financial crisis has taken to Latin America at a time of strong economic growth. Not only the Latin American countries were enjoying an historical period of growth, but also their Governments (at least in most of the countries of the region), were pursuing important reforms and boosting measures aimed at achieving the region’s economic development and sustained growth in the long term. One of the key sectors in which the reforms carried out by Latin American Governments focused was the financial system. The financial system in Latin America has been on several occasions the sector originating in the crises that the region was suffering. But in this new stage, Latin American financial systems are much more solid than in the past and with better prospects to underpin the growth of the economies of the region, transforming Thus in elements that increase the soundness of economies and not elements destabilizing as they used in the past. Linked to the above, an article recently published I was of great interest in the site by America Economia, written by Eduardo Thomson, who remembered the many reform initiatives in financial systems in Latin America that have been suspended because of the current international financial crisis which ended impacting on the region’s economies. So for example, in the case of Colombia, Thomson recalled important financial reform, which would introduce the possibility of that pension funds could offer multi-fund customers in such a way of adapting the supply of funds to the preference of customers against the risk. Thus, according to the level of risk the funds would have different exposure to the markets of fixed and variable income. While a multi-fund system implementation project has been put on hold, it is considered a fact fortunate part of Pedro Flecha, President of the Association of AFP from Peru, who indicated it as the cauda of the reduced impact of the crisis on the profitability of the pension funds in Colombia: by having a single fund with lower exposure to equities, accumulated a six and percentage of profitability.