Didier, TatianaSchmukler, Sergio L.2013-09-252013-09-252013-08https://hdl.handle.net/10986/15817The paper documents the major trends in financial development in Latin America and the Caribbean since the early 1990s. The paper compares trends in Latin America and the Caribbean with those in Asia, Eastern Europe, and advanced countries and compares countries within Latin America and the Caribbean. The findings show that financial systems in the Latin America and the Caribbean region have become more diversified and more complex. In particular, domestic financial systems have become less bank-based, with bond and stock markets playing a larger role; institutional investors have gained some space in channeling domestic savings, thus increasing the availability of funds for investment in capital markets; and several economies in the region have started to reduce currency and maturity mismatches. Nonetheless, a few large companies continue to capture most of the domestic savings. And because these trends have unfolded more slowly than pro-market reformers had envisioned, broad, market-based financial systems with dispersed ownership have yet to materialize fully in the region. As a result, convergence is still largely failing to happen and the region's financial systems remain less developed than those of the advanced economies and several other emerging economies, most notably those in Asia.en-USCC BY 3.0 IGOACCESS TO BANKACCESS TO BANKSACCESS TO CAPITALACCESS TO FINANCINGACCOUNTINGACCOUNTING STANDARDSACCOUNTS RECEIVABLEASSET CLASSESASSET POOLASSET RATIOSBALANCE SHEETSBANK ACCOUNTBANK ASSETSBANK CREDITBANK DEBTBANK FINANCINGBANK LENDINGBANK LOANSBANKING SECTORBANKING SECTORSBANKING SYSTEMBANKING SYSTEMSBENCHMARK YIELDBENCHMARK YIELD CURVEBONDBOND FINANCINGBOND ISSUANCEBOND ISSUESBOND MARKETBOND MARKET CAPITALIZATIONBOND YIELDSBONDSBROKERAGEBROKERAGE FIRMSCAPITAL MARKETCAPITAL MARKET ACTIVITYCAPITAL MARKET REFORMSCAPITAL MARKET REGULATIONCAPITAL MARKETSCAPITAL RAISINGCAPITAL REQUIREMENTSCAPITAL-RAISING ACTIVITIESCENTRAL BANKCENTRAL BANKSCOLLATERALCOMMERCIAL BANKSCOMMERCIAL MORTGAGECOMMERCIAL MORTGAGE-BACKED SECURITIESCOMMERCIAL PAPERCOMMERCIAL PAPER MARKETCONSUMER CREDITCONSUMER LOANSCONTRACT LAWCORPORATE BONDCORPORATE BOND MARKETSCORPORATE BONDSCORPORATE GOVERNANCECORPORATE LAWCREDIT CARDCREDIT CARDSCREDIT HISTORYCREDIT LINESCREDIT MARKETCREDIT PROVIDERSCREDIT PROVISIONCREDIT RATINGSCREDIT RISKCREDIT UNIONSCROSS-BORDER FLOWSCURRENCYCURRENCY MISMATCHESDEBTDEBT MATURITYDEGREE OF RISKDEPOSITSDERIVATIVEDERIVATIVE MARKETSDERIVATIVESDERIVATIVES MARKETDEVELOPING COUNTRIESDEVELOPMENT BANKDOMESTIC BONDDOMESTIC BOND MARKETSDOMESTIC BONDSDOMESTIC CURRENCIESDOMESTIC CURRENCYDOMESTIC MARKETSELECTRONIC MARKETEMERGING ECONOMIESEMERGING MARKETEMERGING MARKETSENABLING ENVIRONMENTENFORCEMENT OF CONTRACTEQUIPMENTEQUITIESEQUITY FINANCINGEQUITY MARKETEQUITY MARKET CAPITALIZATIONEQUITY MARKETSEQUITY VALUATIONSFINANCIAL CRISESFINANCIAL CRISISFINANCIAL DEVELOPMENTFINANCIAL INSTRUMENTSFINANCIAL MARKETSFINANCIAL SECTOR DEVELOPMENTFINANCIAL STABILITYFINANCIAL SYSTEMFINANCIAL SYSTEMSFISCAL DEFICITSFLOATING EXCHANGE RATEFOREIGN BANKSFOREIGN CAPITALFOREIGN CURRENCYFOREIGN CURRENCY DEBTFOREIGN EXCHANGEFOREIGN FINANCIAL INSTITUTIONSFOREIGN FINANCINGFOREIGN INVESTORSFUTURESGOVERNMENT BONDSGROSS DOMESTIC PRODUCTHIGH-YIELD BONDSHIGH-YIELD CORPORATE BONDSHOUSEHOLD SAVINGSHOUSING FINANCEILLIQUID MARKETSINFLATIONINITIAL PUBLIC OFFERINGSINSTITUTIONAL INVESTORSINSURANCEINSURANCE COMPANIESINTEREST RATEINTEREST RATE DERIVATIVEINTEREST RATE DERIVATIVE MARKETSINTERNATIONAL BANKINTERNATIONAL MARKETSINTERNATIONAL SETTLEMENTSINTERNATIONAL STANDARDSINVESTINGINVESTMENT BANKSINVESTMENT BEHAVIORINVESTOR CONFIDENCEINVESTOR PROTECTIONISSUANCEISSUANCE OF BONDSLEVYLIQUID SECONDARY MARKETSLIQUIDITYLOCAL CURRENCYLOCAL MARKETSLONG-TERM BOND MARKETSLONG-TERM DEBTMACROECONOMIC VOLATILITYMARKET DISCIPLINEMARKET FOR BONDMARKET LIQUIDITYMARKET PLAYERSMARKET REFORMSMARKET SIZEMATURITIESMATURITYMATURITY MISMATCHESMATURITY STRUCTUREMONETARY POLICIESMONEY MARKETSMORTGAGEMORTGAGE-BACKED SECURITIESMORTGAGESMUTUAL FUNDSOFFSHORE CENTERSOFFSHORE FINANCIAL CENTERSOUTSTANDING AMOUNTSOUTSTANDING LOANSPENSIONPENSION FUNDPENSION FUND INVESTMENTSPENSION FUND REFORMSPENSION FUNDSPENSION SYSTEMPENSION SYSTEM REFORMSPORTFOLIOPORTFOLIOSPRICE STABILITYPRIMARY MARKETPRIMARY MARKETSPRINCIPAL-AGENT PROBLEMSPRIVATE BONDPRIVATE BONDSPRIVATE SECTOR CREDITPROFIT MARGINPROTECTION OF MINORITY SHAREHOLDERSPUBLIC BANKSPUBLIC DEBTPUBLIC SECTOR BONDRETURNRETURN ON ASSETSRETURNSSECONDARY BOND MARKETSSECONDARY MARKETSSECURITIESSHAREHOLDERSHAREHOLDERSSTOCK EXCHANGESTOCK EXCHANGESSTOCK MARKETSSTOCKSTRADINGTRANCHESTRANSACTIONTRANSACTION COSTSTRANSPARENCYTURNOVERTURNOVER FIGURESVALUATIONWORKING CAPITALWorld Bank10.1596/1813-9450-6582