Skip navigation
Benefits of Global and Regional Financial Integration in Latin America
Report

Benefits of Global and Regional Financial Integration in Latin America

IMF, 2017

auto-generated audio
auto-generated audio

Editorial Rating

8

Qualities

  • Analytical
  • Innovative
  • Background

Recommendation

Latin American countries, following a roller coaster of economic conditions in the 1980s and 1990s, began allowing global banks into their financial systems in 2000. But the international giants have been pulling out of these markets since the 2008 global crisis. According to this fresh perspective from economists Luc Eyraud, Diva Singh and Bennett Sutton, Latin American nations should seize the opportunity to strengthen their economies by creating regionally integrated financial infrastructures. getAbstract recommends this astute analysis to executives, investors and anyone interested in Latin America’s future.

Take-Aways

  • Many Latin American nations are coping with smaller and weaker financial systems now that the global banks have withdrawn from the region in the aftermath of the 2008 financial crisis.
  • The intraregional integration of financial institutions in Latin America is low in comparison to other developing areas, like Asia.
  • Integration promotes economic growth through an influx of foreign capital, enhancing competition among financial institutions and creating economies of scale.

About the Authors

Luc Eyraud, Diva Singh and Bennett Sutton are economists at the International Monetary Fund.