Systemic Oversight Frameworks in LAC : Current Practices and Reform Agenda
The world financial crisis that started in the US housing market in 2008 brought into evidence deep failures of prudential oversight, linked for the most part to a failure to comprehend and handle systemic risk in a way that could prevent systemic...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120110091522 http://hdl.handle.net/10986/3226 |
| Summary: | The world financial crisis that started
in the US housing market in 2008 brought into evidence deep
failures of prudential oversight, linked for the most part
to a failure to comprehend and handle systemic risk in a way
that could prevent systemic crises. This paper summarizes
the responses to the joint World Bank -ASBA survey o the
state of systemic oversight in the Latin American and
Caribbean financial sectors and reflects on some of the
challenges identified by respondents. We found that there is
broad consensus among regional financial authorities on the
need to enhance the current systemic oversight framework.
Improving consolidated supervision to mitigate risk-shifting
in conglomerates, adjusting prudential regulations to
account for the accumulation of systemic risks, redefining
the role of the supervisor to make it more proactive, and
improving coordination among local supervisors as well as
with foreign supervisors figure preeminently in the regional
reform agenda. |
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