Policy Instruments to Lean Against the Wind in Latin America / G Terrier.

• This paper reviews policy tools that have been used and/or are available for policy makers in the region to lean against the wind and review relevant country experiences using them. The instruments examined include: (i) capital requirements, dynamic provisioning, and leverage ratios; (ii) liquidity requirements; (iii) debt-to-income ratios; (iv) loan-to-value ratios; (v) reserve requirements on bank liabilities (deposits and nondeposits); (vi) instruments to manage and limit systemic foreign exchange risk; and, finally, (vii) reserve requirements or taxes on capital inflows. Although the instruments analyzed are mainly microprudential in nature, appropriately calibrated over the financial cycle they may serve for macroprudential purposes.

Ämnesord

Banking  (imf)

Debt-to-Income Ratios  (imf)

Dynamic Provisions  (imf)

Financial Institutions and Services: Government Policy and Regulation  (imf)

Financial System  (imf)

Foreign Exchange Credit Risk  (imf)

Brazil  (imf)

Colombia  (imf)

Korea, Republic of  (imf)

Peru  (imf)

Uruguay  (imf)