Systemically Important Financial Institutions in Latin America - A Primer

Brazilian Journal of Political Economy (Forthcoming)

Posted: 28 May 2014 Last revised: 8 Dec 2015

See all articles by Jacob Kleinow

Jacob Kleinow

Freiberg University; National University of Colombia

Mario García Molina

National University of Colombia - Department of Economics

Andreas Horsch

Freiberg University

Date Written: April 14, 2015

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.

Keywords: Latin America, SIFI, systemic risk, too-big-to-fail, instability, banking regulation

JEL Classification: F3; G01; G21; G28

Suggested Citation

Kleinow, Jacob and García Molina, Mario and Horsch, Andreas, Systemically Important Financial Institutions in Latin America - A Primer (April 14, 2015). Brazilian Journal of Political Economy (Forthcoming), Available at SSRN: https://ssrn.com/abstract=2441874 or http://dx.doi.org/10.2139/ssrn.2441874

Jacob Kleinow (Contact Author)

Freiberg University ( email )

Lessingstr. 45
Freiberg, 09596
Germany

HOME PAGE: http://www.tu-freiberg.de

National University of Colombia ( email )

Carrera 30 45-03
Bogota, None
Colombia

Mario García Molina

National University of Colombia - Department of Economics ( email )

Carrera 30 Calle 45 Ciudad Universitaria
Bogotá
Colombia

HOME PAGE: http://www.unal.edu.co

Andreas Horsch

Freiberg University ( email )

Freiberg, D-09599
Germany

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