risks

In this publication you will find, on a weekly basis, our selection of the most relevant news regarding financial regulation.

The meetings of the International Monetary Fund (IMF) are useful to gauge the health of the economy and analyze the challenges it faces. The snapshot this year has been upbeat since global growth forecasts have been revised up and the IMF has attached less importance to the myriad risks it had outlined.

The current macrofinancial environment in the Latam region has both positive and negative factors affecting banking activity.

The growing mistrust between the East and the West is creating a geopolitical scenario that for many is reminiscent of the Cold War era; a time when domestic markets advanced under the weight of interventionist policies, and relations between countries were belligerent and highly volatile.

How is Latin America affected by the recent difficulties facing certain banks in the US and Europe? In all honesty it is too early to tell, but any eventual impact would be indirect and would not happen via the Latin American banking system.

The recent financial turmoil in the US and Swiss banking system has exacerbated the already complex monetary policy and inflation outlook, following several years of economic shocks. The central banks have reacted well by separating anti-inflation instruments from financial risk prevention.