Sound Banks for Healthy Economies Challenges for Policymakers in Latin America and the Caribbean in Times of Coronavirus
report by A CGD-IDB Working Group
Here is part of the executive summary from the report:
"The COVID-19 crisis has already taken a large toll on Latin America and the Caribbean in terms of confirmed cases and deaths as well as sharp declines in economic activity—and it is far from over. It is still unclear how long the health crisis will persist and how soon and how fast economies will recover. The deep recession and the serious income losses for families and firms may provoke significant challenges for financial systems. Unlike recent financial or balance of payments’ crises, this may be more of a slow-moving event in which credit risks take center stage. Good policies will be critical to navigate the coming months. The purpose of this report is twofold: to identify and discuss a set of challenges, and to develop key recommendations. The overarching goal is to provide support to policymakers in the region who may face difficult decisions to ensure that banks play a constructive role and support families and firms through and beyond the current crisis."
You can get the report for free at this link.
Professor Caprio was part of the Working Group that produced this report.