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What are the perils of separating banking regulation from the central bank's orbit in Latin America and the Caribbean?

Edgardo Demaestri (Infrastructure and Financial Markets Division, Inter‐American Development Bank, Washington, District of Columbia, USA)
Federico Guerrero (Department of Economics, College of Business Administration, University of Nevada, Reno, Nevada, USA)

Journal of Financial Regulation and Compliance

ISSN: 1358-1988

Article publication date: 1 January 2006

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Abstract

Purpose

Aims to review the potential risks associated with the separation of banking regulation from the orbit of the central bank in Latin‐American and Caribbean countries (LAC).

Design/methodology/approach

Sets out information on the banking regulators in LAC and on the current degree of involvement of the central bank in banking regulation; the main monetary policy issues connected to the separation of banking regulation from the central bank; and the main banking regulation issues involved.

Findings

The separation of banking regulation from the central bank would not present any great danger to LAC currently. However, the need to conduct the move in accordance with best principles must be emphasized.

Originality/value

Given the fertile ground offered by the countries of LAC, this paper presents arguably the most comprehensive examination to date of this “hot potato”.

Keywords

Citation

Demaestri, E. and Guerrero, F. (2006), "What are the perils of separating banking regulation from the central bank's orbit in Latin America and the Caribbean?", Journal of Financial Regulation and Compliance, Vol. 14 No. 1, pp. 70-83. https://doi.org/10.1108/13581980610644770

Publisher

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Emerald Group Publishing Limited

Copyright © 2006, Emerald Group Publishing Limited