Survey on Systemic Oversight Frameworks in LAC: Current Practices and Reform Agenda

The world financial crisis that started in the US housing market in 2008 brought into evidence deep failures of prudential oversight, linked for the most part to a failure to comprehend and handle systemic risk in a way that could prevent systemic crises. Systemic risk is defined as “a risk of disruption to financial services that is (i) caused by an impairment of all or parts of the financial system and (ii) has the potential to have serious negative consequences for the real economy”. Systemically important financial institutions (SIFIs) are those impending failure, inability to operate or disorderly wind down could produce systemic effects as defined above.
(Texto en inglés)