Paraguay : Financial Sector Review
The report examines the highly vulnerable situation of the financial system in Paraguay, which suffered from a banking crisis in 1995-98, in addition to recent competitive devaluations of the Brazilian currency, the fall in cotton prices, as well a...
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| Format: | Pre-2003 Economic or Sector Report |
| Language: | English en_US |
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Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2002/11/2083430/paraguay-financial-sector-review http://hdl.handle.net/10986/13878 |
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okr-10986-138782021-04-23T14:03:15Z Paraguay : Financial Sector Review World Bank ACCOUNTING ACCOUNTING PRACTICES ACCOUNTING STANDARDS ACCOUNTS AFFILIATES AUTONOMY BALANCE SHEET BALANCE SHEETS BANK ACCOUNTING BANK ASSETS BANK BRANCHES BANK DEPOSITS BANK EARNINGS BANK FAILURES BANK INSOLVENCY BANK MANAGEMENT BANK RESTRUCTURING BANK RUN BANK SOLVENCY BANKING CRISES BANKING CRISIS BANKING LAW BANKING REGULATION BANKING SECTOR BANKING SUPERVISION BANKING SYSTEM BANKRUPTCY BANKS BENCHMARK BONDS CAPITAL ADEQUACY CAPITAL ADEQUACY RATIOS CAPITALIZATION CAR CENTRAL BANK COLLATERALIZATION COMPETITIVENESS CONSOLIDATION CONTAGION COUPONS CREDIT RISK CURRENCY ASSETS CURRENCY DEVALUATIONS DEBT DEBT SERVICING DEFICIENT BANK MANAGEMENT DEMAND DEPOSITS DENOMINATED LOANS DEPOSIT INSURANCE DEPOSITORS DEPOSITS DEVALUATION EARNING ASSETS ECONOMIC GROWTH FINANCIAL ENGINEERING FINANCIAL INTERMEDIARIES FINANCIAL RATIOS FINANCIAL SECTOR FISCAL YEAR FOREIGN BANKS FOREIGN CURRENCY DEPOSITS FOREIGN EXCHANGE GDP GROSS DOMESTIC PRODUCT ILLIQUIDITY INSOLVENT BANKS INSTITUTIONAL DEVELOPMENT INSURED DEPOSITS INTER AMERICAN DEVELOPMENT BANK INTEREST RATE INTEREST RATES INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL RESERVES LENDER OF LAST RESORT LIQUID ASSETS LIQUIDATION LOAN LOSS PROVISIONS M2 M3 MATURITIES MONETARY AUTHORITIES MONETARY INDICATORS MONEY SUPPLY MORAL HAZARD MORTGAGES OPEN MARKET OPERATIONS PENALTIES POLITICAL INTERFERENCE PORTFOLIO PORTFOLIOS PROFITABILITY PROPERTY OWNERSHIP PRUDENTIAL REGULATIONS PUBLIC BANKS RATING SYSTEM REGULATORY FORBEARANCE RESERVE REQUIREMENT RESERVE REQUIREMENTS RETURN ON ASSETS RISK MANAGEMENT RISK WEIGHTED ASSETS SAVINGS SAVINGS DEPOSITS SECURITIES SECURITIZATION STATE BANKS STATE OWNED BANKS SUPERVISORY AUTHORITIES T-BILLS TRADE SHOCKS TRADING VALUATION FINANCIAL SECTOR; MACROECONOMIC ADJUSTMENT; FINANCIAL ANALYSIS; FINANCIAL INDICATORS; BANKING CRISES; CURRENCY DEVALUATION; COTTON PRICES; REGIONAL ECONOMICS; BANKING REFORMS; COLLATERAL; LIQUIDITY (ECONOMICS); BANKING REFORM; RESTRUCTURING; STATE-OWNED BANKS; INSTITUTIONAL FRAMEWORK; LEGAL & REGULATORY FRAMEWORK; SOCIAL SAFETY NETS; DEPOSIT INSURANCE; PENSION REFORM; PAY-AS-YOU-GO SYSTEMS; FISCAL CONSTRAINTS; PENSION FUNDS; INVESTMENTS; FOREIGN INVESTMENTS; FOREIGN SECURITIES The report examines the highly vulnerable situation of the financial system in Paraguay, which suffered from a banking crisis in 1995-98, in addition to recent competitive devaluations of the Brazilian currency, the fall in cotton prices, as well as the regional economic slowdown. A major factor obscuring the reality of banking system solvency, is the practice of substituting needed loan provisions, with collaterals which underlie the loans. The main issue here is the relative liquidity absence, and delays inherent in unwinding such collateral, as well as its potential over-valuation, making it an ineffective substitute for cash provisions. The report further examines banking reforms, and restructuring of the state-owned banks, institutional and regulatory framework, and the safety net mechanisms and deposit insurance governing the system. It is suggested the reform of the pension system is crucial at this juncture, given that the current pay-as-you-go social security public pension system, is not fiscally sustainable from an actuarial, and benefits payment perspective, and, because the current system, even at its best, delivers very low returns on pension investment funds. Most importantly, for both the public, and private systems, the investment regime should permit heavy weighting in foreign hard currency securities. 2013-06-12T21:09:56Z 2013-06-12T21:09:56Z 2002-11-15 http://documents.worldbank.org/curated/en/2002/11/2083430/paraguay-financial-sector-review http://hdl.handle.net/10986/13878 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Pre-2003 Economic or Sector Report Economic & Sector Work Latin America & Caribbean Paraguay |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING ACCOUNTING PRACTICES ACCOUNTING STANDARDS ACCOUNTS AFFILIATES AUTONOMY BALANCE SHEET BALANCE SHEETS BANK ACCOUNTING BANK ASSETS BANK BRANCHES BANK DEPOSITS BANK EARNINGS BANK FAILURES BANK INSOLVENCY BANK MANAGEMENT BANK RESTRUCTURING BANK RUN BANK SOLVENCY BANKING CRISES BANKING CRISIS BANKING LAW BANKING REGULATION BANKING SECTOR BANKING SUPERVISION BANKING SYSTEM BANKRUPTCY BANKS BENCHMARK BONDS CAPITAL ADEQUACY CAPITAL ADEQUACY RATIOS CAPITALIZATION CAR CENTRAL BANK COLLATERALIZATION COMPETITIVENESS CONSOLIDATION CONTAGION COUPONS CREDIT RISK CURRENCY ASSETS CURRENCY DEVALUATIONS DEBT DEBT SERVICING DEFICIENT BANK MANAGEMENT DEMAND DEPOSITS DENOMINATED LOANS DEPOSIT INSURANCE DEPOSITORS DEPOSITS DEVALUATION EARNING ASSETS ECONOMIC GROWTH FINANCIAL ENGINEERING FINANCIAL INTERMEDIARIES FINANCIAL RATIOS FINANCIAL SECTOR FISCAL YEAR FOREIGN BANKS FOREIGN CURRENCY DEPOSITS FOREIGN EXCHANGE GDP GROSS DOMESTIC PRODUCT ILLIQUIDITY INSOLVENT BANKS INSTITUTIONAL DEVELOPMENT INSURED DEPOSITS INTER AMERICAN DEVELOPMENT BANK INTEREST RATE INTEREST RATES INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL RESERVES LENDER OF LAST RESORT LIQUID ASSETS LIQUIDATION LOAN LOSS PROVISIONS M2 M3 MATURITIES MONETARY AUTHORITIES MONETARY INDICATORS MONEY SUPPLY MORAL HAZARD MORTGAGES OPEN MARKET OPERATIONS PENALTIES POLITICAL INTERFERENCE PORTFOLIO PORTFOLIOS PROFITABILITY PROPERTY OWNERSHIP PRUDENTIAL REGULATIONS PUBLIC BANKS RATING SYSTEM REGULATORY FORBEARANCE RESERVE REQUIREMENT RESERVE REQUIREMENTS RETURN ON ASSETS RISK MANAGEMENT RISK WEIGHTED ASSETS SAVINGS SAVINGS DEPOSITS SECURITIES SECURITIZATION STATE BANKS STATE OWNED BANKS SUPERVISORY AUTHORITIES T-BILLS TRADE SHOCKS TRADING VALUATION FINANCIAL SECTOR; MACROECONOMIC ADJUSTMENT; FINANCIAL ANALYSIS; FINANCIAL INDICATORS; BANKING CRISES; CURRENCY DEVALUATION; COTTON PRICES; REGIONAL ECONOMICS; BANKING REFORMS; COLLATERAL; LIQUIDITY (ECONOMICS); BANKING REFORM; RESTRUCTURING; STATE-OWNED BANKS; INSTITUTIONAL FRAMEWORK; LEGAL & REGULATORY FRAMEWORK; SOCIAL SAFETY NETS; DEPOSIT INSURANCE; PENSION REFORM; PAY-AS-YOU-GO SYSTEMS; FISCAL CONSTRAINTS; PENSION FUNDS; INVESTMENTS; FOREIGN INVESTMENTS; FOREIGN SECURITIES |
| spellingShingle |
ACCOUNTING ACCOUNTING PRACTICES ACCOUNTING STANDARDS ACCOUNTS AFFILIATES AUTONOMY BALANCE SHEET BALANCE SHEETS BANK ACCOUNTING BANK ASSETS BANK BRANCHES BANK DEPOSITS BANK EARNINGS BANK FAILURES BANK INSOLVENCY BANK MANAGEMENT BANK RESTRUCTURING BANK RUN BANK SOLVENCY BANKING CRISES BANKING CRISIS BANKING LAW BANKING REGULATION BANKING SECTOR BANKING SUPERVISION BANKING SYSTEM BANKRUPTCY BANKS BENCHMARK BONDS CAPITAL ADEQUACY CAPITAL ADEQUACY RATIOS CAPITALIZATION CAR CENTRAL BANK COLLATERALIZATION COMPETITIVENESS CONSOLIDATION CONTAGION COUPONS CREDIT RISK CURRENCY ASSETS CURRENCY DEVALUATIONS DEBT DEBT SERVICING DEFICIENT BANK MANAGEMENT DEMAND DEPOSITS DENOMINATED LOANS DEPOSIT INSURANCE DEPOSITORS DEPOSITS DEVALUATION EARNING ASSETS ECONOMIC GROWTH FINANCIAL ENGINEERING FINANCIAL INTERMEDIARIES FINANCIAL RATIOS FINANCIAL SECTOR FISCAL YEAR FOREIGN BANKS FOREIGN CURRENCY DEPOSITS FOREIGN EXCHANGE GDP GROSS DOMESTIC PRODUCT ILLIQUIDITY INSOLVENT BANKS INSTITUTIONAL DEVELOPMENT INSURED DEPOSITS INTER AMERICAN DEVELOPMENT BANK INTEREST RATE INTEREST RATES INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL RESERVES LENDER OF LAST RESORT LIQUID ASSETS LIQUIDATION LOAN LOSS PROVISIONS M2 M3 MATURITIES MONETARY AUTHORITIES MONETARY INDICATORS MONEY SUPPLY MORAL HAZARD MORTGAGES OPEN MARKET OPERATIONS PENALTIES POLITICAL INTERFERENCE PORTFOLIO PORTFOLIOS PROFITABILITY PROPERTY OWNERSHIP PRUDENTIAL REGULATIONS PUBLIC BANKS RATING SYSTEM REGULATORY FORBEARANCE RESERVE REQUIREMENT RESERVE REQUIREMENTS RETURN ON ASSETS RISK MANAGEMENT RISK WEIGHTED ASSETS SAVINGS SAVINGS DEPOSITS SECURITIES SECURITIZATION STATE BANKS STATE OWNED BANKS SUPERVISORY AUTHORITIES T-BILLS TRADE SHOCKS TRADING VALUATION FINANCIAL SECTOR; MACROECONOMIC ADJUSTMENT; FINANCIAL ANALYSIS; FINANCIAL INDICATORS; BANKING CRISES; CURRENCY DEVALUATION; COTTON PRICES; REGIONAL ECONOMICS; BANKING REFORMS; COLLATERAL; LIQUIDITY (ECONOMICS); BANKING REFORM; RESTRUCTURING; STATE-OWNED BANKS; INSTITUTIONAL FRAMEWORK; LEGAL & REGULATORY FRAMEWORK; SOCIAL SAFETY NETS; DEPOSIT INSURANCE; PENSION REFORM; PAY-AS-YOU-GO SYSTEMS; FISCAL CONSTRAINTS; PENSION FUNDS; INVESTMENTS; FOREIGN INVESTMENTS; FOREIGN SECURITIES World Bank Paraguay : Financial Sector Review |
| geographic_facet |
Latin America & Caribbean Paraguay |
| description |
The report examines the highly
vulnerable situation of the financial system in Paraguay,
which suffered from a banking crisis in 1995-98, in addition
to recent competitive devaluations of the Brazilian
currency, the fall in cotton prices, as well as the regional
economic slowdown. A major factor obscuring the reality of
banking system solvency, is the practice of substituting
needed loan provisions, with collaterals which underlie the
loans. The main issue here is the relative liquidity
absence, and delays inherent in unwinding such collateral,
as well as its potential over-valuation, making it an
ineffective substitute for cash provisions. The report
further examines banking reforms, and restructuring of the
state-owned banks, institutional and regulatory framework,
and the safety net mechanisms and deposit insurance
governing the system. It is suggested the reform of the
pension system is crucial at this juncture, given that the
current pay-as-you-go social security public pension system,
is not fiscally sustainable from an actuarial, and benefits
payment perspective, and, because the current system, even
at its best, delivers very low returns on pension investment
funds. Most importantly, for both the public, and private
systems, the investment regime should permit heavy weighting
in foreign hard currency securities. |
| format |
Economic & Sector Work :: Pre-2003 Economic or Sector Report |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Paraguay : Financial Sector Review |
| title_short |
Paraguay : Financial Sector Review |
| title_full |
Paraguay : Financial Sector Review |
| title_fullStr |
Paraguay : Financial Sector Review |
| title_full_unstemmed |
Paraguay : Financial Sector Review |
| title_sort |
paraguay : financial sector review |
| publisher |
Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2002/11/2083430/paraguay-financial-sector-review http://hdl.handle.net/10986/13878 |
| _version_ |
1764426958172585984 |