Latin America's banking systems in the 1980s : a cross-country comparison

This study compares the financial sectors of 12 Latin American countries (Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Guatemala, Hondorus, Mexico, Peru, Uruguay, and Venezuela). The main objective of the study is to better understand the role and performance of the banking systems in these countries through : i) improving the knowledge base of these banking sectors; and ii) identifying what lessons can be learned from a cross-country comparison. The study followed trends over time, looked at common trends, similarities and differences across countries. The report has been only partially successful because of the difficulties in obtaining comparable data. Nonetheless, the cross-country description of banking sector issues, will likely be useful to policy makers, regulators, and others interested in these issues. The report covers the main issues which affect banking and financial systems in Latin America : 1) the importance of macroeconomic environments; 2) the effects of misusing banking systems to finance deficits; 3) the effects of interest rate controls; 4) the high costs of mishandling banking crises; and 5) the importance of an adequate framework of regulations and supervision.