de la Torre, AugustoIze, AlainSchmukler, Sergio L.2012-03-192012-03-192012978-0-8213-8847-1https://hdl.handle.net/10986/2380The financial systems of the Latin America and the Caribbean region (LAC) are at a crucial juncture. After a history of recurrent instability and crisis (a trademark of the region), they now seem well poised for rapid expansion. Since the last wave of financial crises that swept through the region in the late 1990s and early 2000s, financial systems in LAC have continued to gain in soundness, depth, and diversity. The size of banking systems has increased, albeit from a low base; local currency bond markets have greatly developed, both in volumes and in reach over the yield curve; stock markets have expanded; and derivative markets particularly currency derivatives have grown and multiplied. Institutional investors have become more important relative to banks, making the financial system more complex and diversified. Importantly, much progress has been made in financial inclusion, particularly through the expansion of payments, savings, and credit services to lower income households and microenterprises. As evidence of their new soundness and resiliency, financial systems in the region, except in some Caribbean countries, weathered the recent global financial crisis remarkably well. The progress in financial development in LAC no doubt reflects substantial improvements in the enabling environment, lower macroeconomic volatility, more independent and better-anchored currencies, increased financial liberalization, lower currency mismatches and foreign debt exposures, enhanced effectiveness of regulation and supervision, and notable improvements in the underlying market infrastructures (for example, trading, payments, custody, clearing, and settlement). This regional flagship report aims at providing such a stocktaking and forward looking assessment of the region's financial development. Rather than going into detail about sector-specific issues, the report focuses on the main architectural issues, overall perspectives, and interconnections. The value added of the report thus hinges on its holistic view of the development process, its broad coverage of the financial services industry (not just banking), its emphasis on benchmarking, its systemic perspective, and its explicit effort to incorporate the lessons from the recent global financial crisis.Durante las décadas de 1980 y 1990, el sector financiero constituyó el talón de Aquiles del desarrollo económico en América Latina y el Caribe (ALC). Desde entonces, el sector ha crecido y se ha profundizado, volviéndose más integrado y competitivo, con nuevos actores, mercados e instrumentos y una ampliación de la inclusión financiera. Para coronar estos logros, los sistemas financieros de la región han atravesado la crisis global de 2008-2009 en gran medida ilesos. Ahora que los beneficios de la estabilidad macrofinanciera de ALC están siendo ampliamente reconocidos y puestos a prueba, parece ser el momento ideal para hacer un balance y analizar lo que resta por hacer. Este informe provee un análisis balanceado, con miras al futuro, sobre el desarrollo financiero de la región. Se centra en los principales elementos estructurales, perspectivas generales y sus interconexiones. El valor agregado de este reporte descansa entonces en su visión holística del proceso de desarrollo; en su cobertura amplia de la industria de servicios financieros (tomada como un todo, sin centrarse exclusivamente en el sector bancario); en su énfasis en un enfoque comparativo, relativo a valores de referencia; en su perspectiva sistémica; y en su esfuerzo explícito de incorporar las lecciones de la crisis financiera internacional de 2008–2009. A su vez expande y complementa la visión global de una serie de estudios publicados durante la última década sobre el desarrollo financiero, tanto sobre los países de ALC como sobre otros países en vías de desarrollo.CC BY 3.0 IGOACCOUNTABILITYAUTHORITYBASIC EDUCATIONBETTERMENT TAXESBOND ISSUESBORROWINGBORROWING ARRANGEMENTSBUDGET DEFICITSCAPITAL CITIESCAPITAL PLANNINGCAPITAL PROJECTSCENTRAL GOVERNMENTCENTRAL GOVERNMENTSCENTRAL TRANSFERSCITIZENSCIVIL SERVICECONSTITUTIONCONSTITUTIONSCORRUPTIONCREDITWORTHINESSDEBTDEBT FINANCINGDECENTRALIZATIONDECENTRALIZATION IN GOVERNMENTDECENTRALIZATION PROCESSDECISION-MAKINGDECISION-MAKING POWERDECREEDEMOCRACYDEMOCRATIC REFORMSDEVOLUTIONECONOMIC CONDITIONSEMPLOYMENTEXPENDITUREEXPENDITURE RESPONSIBILITIESFEDERAL GOVERNMENTFISCALFISCAL BALANCEFISCAL DECENTRALIZATIONFISCAL MANAGEMENTFISCAL PRESSURESFISCAL REFORMGOVERNMENT ASSISTANCEGOVERNMENT AUTHORITYGOVERNMENT BUDGETSGOVERNMENT EXPENDITURESGOVERNMENT REVENUESGOVERNMENT SERVICESHEALTH SERVICESHOUSINGINTERGOVERNMENTAL FINANCEINTERGOVERNMENTAL FISCAL RELATIONSINTERGOVERNMENTAL TRANSFERSLACK OF TRANSPARENCYLAWSLEGAL CHANGESLEGISLATIONLEVELS OF GOVERNMENTLOCAL AUTHORITIESLOCAL GOVERNMENTLOCAL GOVERNMENTSLOCAL TAXLOCAL TAXESMATCHING GRANTSMINISTERSMUNICIPAL DEBTMUNICIPAL GOVERNMENTSMUNICIPALITIESMUNICIPALITYNATIONAL GOVERNMENTSNATIONAL LEGISLATURESNATIONAL TAXESNATIONSPROPERTY TAXESPROVINCIAL GOVERNMENTSPUBLIC EMPLOYMENTPUBLIC FINANCEPUBLIC FUNDSPUBLIC OFFICIALSPUBLIC SERVICESPUBLIC WORKSREFERENDUMSRESOURCE MOBILIZATIONRETAIL SALES TAXREVENUE SHARINGREVENUE SOURCESREVENUE TRANSFERSREVOLUTIONROADSSAVINGSSERVICE CAPACITYSTATE BANKSTAX AUTHORITYTAX COLLECTIONSTAX RATESTAX RECEIPTSTAX REVENUESLOCAL FINANCINGUSER CHARGESDECISION-MAKING PROCESSDEMOCRATIZATIONDEMOCRATIC VALUESLOCAL OFFICIALSPUBLIC SERVICE FINANCEREFORMSTRANSITIONWorld Bank10.1596/978-0-8213-8847-1