Finance for Development : Latin America in Comparative Perspective

Acknowledgments vii Finance for Development: Issues and Trends Finance within a New Development Model in Latin America Latin America's Financial Sector Today: Stylized Facts Substantive and Methodological Contributions Overview of the Book 1(20) Part I. Changes in Latin America's Financial System since 1990: Comparisons with East Asia Financial Liberalization, Crisis, and the Aftermath Financial Liberalization: Literature and Hypotheses Financial Liberalization: Empirical Trends Financial Liberalization and Crisis Rescue Programs: Costs and Outcomes Conclusions 21(31) Changes in Ownership: Public, Private, and Foreign Banks Bank Ownership, Performance, and Institutions: Literature and Hypotheses Trends in Bank Ownership Ownership and Performance Ownership, Institutions, and Performance Conclusions 52(30) Toward Stability: Regulation, Supervision, and the Macroeconomic Context Regulation and Supervision: Literature and Hypotheses Regulation and Supervision: The State of the Art Regulation, Supervision, and Financial Performance Conclusions 82(29) From Banks to Capital Markets: New Sources of Finance Capital Market Performance: Literature and Hypotheses Comparing Financial Market Trends across Regions Analysis of Financial Market Trends Conclusions 111(34) Part II. The Impact of the New Financial System on Investment and Access in Latin America Chile: Mixed Ownership Provides a New Model Liberalization, Crisis, and Response Changes in Structure Finance, Investment, and Growth Access to Finance for Small Firms Conclusions 145(39) Mexico: Foreign Banks Assume Control Liberalization, Crisis, and Response Changes in Structure Finance, Investment, and Growth Access to Finance for Small Firms Conclusions 184(38) Brazil: Public Banks Continue to Play a Key Role Liberalization, Crisis, and Response Changes in Structure Finance, Investment, and Growth Access to Credit for Small Firms Conclusions 222(39) Part III. Policy Recommendations for a Stronger Financial System A Policy Agenda for the Financial Sector Banks and Capital Markets since 1990 Toward a Policy Agenda on Finance Final Comments 261(24) References 285(20) Index 305