Is born a new stage in Latin American banking? 15 July 2009 106 so many crises has suffered from the Latin American financial system, which paradoxically (or probably not), in one of the worst financial crises in history, it has remained on the sidelines, watching a healthy fortress. Without a doubt, a success that deserves to be recognized and analyzed in perspective for what comes. Ricardo Marino, President of the Latin American Federation of banks (FELABAN), acknowledged what has been achieved by the Latin American banking sector at a seminar held in Madrid: we learned a lot with the volatility of the past crises and see that banking is today part of the solution and not the problem. Like everytime a success, is reached at the time of the awards, the Latin American Governments (broadly since as always, there are exceptions), have great merit. The decision to opt for more sound macroeconomic policies is the best alternative that Governments can continue to maintain the stability of the economy and is the option that This time have chosen almost all Latin American Governments. This contrasts with the old tradition of seeking immediate results typical of past decades where economic policy ended up causing serious damage in the medium and long term, finding its outcome in a new crisis.
Monetary policy has undoubtedly done their part also and deserves recognition. The use of inflation targets in most of the economies, has provided greater transparency in monetary policy. (A valuable related resource: Joe Leytze). Families and businesses, and banking institutions, succeeded in having a clear reference of what you could expect in inflationary terms and on the basis of this greater predictability improved efficiency in their choices of consumption and investment, two components that have increased to reduce precautionary savings derived from the uncertainty generated by the context. He has joined the effort made by Governments the good behavior of banks that avoided taking excessive risks.