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Financial Development in Latin America and the Caribbean: The Road Ahead


Report in English (PDF 10.27 MB)

Report in Spanish 

This Flagship Report examines issues on the interaction between financial development and financial stability by revisiting the nature of different market imperfections and their interactions. It discusses the "bright" and "dark" sides of the process of financial development, and provides an assessment of the nature of, and the reasons behind, the region's gaps in financial development.

Financial Flagship 2011

The report also provides a rich discussion of the new, systemically-oriented regulatory reform agenda. It argues that market imperfections ultimately limit the extent to which markets can self-regulate, which puts a premium on good public policies and suggests a rebalancing of the roles of the financial markets and the state.


This report was produced by a core team led by Augusto de la Torre, Alain Ize, and Sergio L. Schmukler. Other members of the core team include: Deniz Anginer, Luis Martín Auqui, César Calderón, Francisco Ceballos, Mariano Cortés, Tatiana Didier, Katia d'Hulster, Miquel Dijkman, Erik Feyen, Eva Gutiérrez, Socorro Heysen, Eduardo Levy Yeyati, María Soledad Martínez Pería, Claudio Raddatz, Steve Seelig, and Luis Servén. 

The Flagship was also guided by an Advisory Group of LAC financial policy makers, many of which provided substantive comments at an Authors' Workshop organized in December 2010. The members of the Advisory Group are:

  • From Brazil: Alexandre Tombini (Governor, Central Bank) and Luis Pereira da Silva (Deputy Governor for International Affairs, Central Bank)
  • From Chile: Luis Céspedes (Former Head of Research, Central Bank)
  • From Colombia: Ana Fernanda Maiguashca (Regulation Director, Ministry of Finance)
  • From Costa Rica: Francisco de Paula Gutiérrez (Former Governor, Central Bank)
  • From Jamaica: Brian Wynter (Governor, Bank of Jamaica) and Brian Langrin (Chief Economist, Financial Stability Unit, Bank of Jamaica)
  • From Mexico: Guillermo Babatz Torres (President, National Banking and Securities Commission) and Carlos Serrano (Vice President of Regulatory Policies, National Banking and Securities Commission)
  • From Peru: Javier Poggi (Chief Economist, Superintendency of Banking, Insurance and Private Persion Funds) and Manuel Luy (Head of the Economic Research Department, Superintendency of Banking, Insurance and Private Pension Funds)
  • From Uruguay: Mario Bergara (Governor, Central Bank)


The main output of the 2011 Regional Flagship Study consists of this Flagship Report and a companion Edited Volume with specialized chapters drafted by different members of the team. While both the Report and the papers in the Edited Volume result from a team effort, the responsibility for their content ultimately remains with their drafting authors. Thus, the views expressed in this Report at times may differ from those expressed in the supporting papers of the Edited Volume. These two products are complementary in their overall perspectives, in both the scope and extent of their analysis, and in their intended audiences

Featured in several media outlets including CNN En Español, EFE, the New York Times, Reuters, Voice of America, the Wall Street Journal (USA), BBC Mundo (UK), Infolatam (Spain), La Nacion (Argentina), El Diario, Los Tiempos (Bolivia), Estrategia and Negocios (Central America), Economia y Negocios (Chile),Caracol Radio, El Espectador, Terra, La Republica, Portafolio (Colombia), El Financiero (Costa Rica), Diario Libre, (Dominican Republic), El Mundo (El Salvador), Prensa Libre, Siglo XXI (Guatemala), El Economista, El Financiero, El Universal, Excelsior, La Cronica de Hoy, La Jornada, La Razon, La Reforma, Milenio, Notimex, Reporte 98.5 (Mexico), La Prensa (Panama), and Notitarde (Venezuela).

Reviewed in Foreign Affairs, by Richard Feinberg, March/April 2012.


Related Publications and Presentations

Emerging Issues in Financial Development: Lessons from Latin America

Presentation at Columbia University, New York, November 2011 (PDF 1810 KB)

Presentation at joint CAF-World Bank Workshop, Bogota, Colombia - December 2011 (PDF 3456 KB)

Presentation at IMF, Washington, DC - January 2012 (PDF 2499 KB)

Presentation at American University, Washington, DC - February 2012 (PDF 5304 KB)

Presentation at Central Bank of Brazil and Casas das Garças, Brazil - March 2012 (PDF 1801 KB)

Presentation at Foro Internacional de Economía, Lima, Perú - April 2012 (PDF 3247 KB)

Presentation at ITAM, Mexico City, Mexico - May 2012 (PDF 3225 KB)

Presentation at Central Bank of Uruguay, Montevideo, Uruguay - May 2012 (PDF 1632 KB)

Presentation at Central Bank of Paraguay, Asuncion, Paraguay - May 2012 (PDF 1544 KB)

Presentation at Ministry of Finance, Asuncion, Paraguay - May 2012 (PDF 1940 KB)

Presentation at ABIF, Santiago, Chile - June 2012 (PDF 1942 KB)



Other related documents

Flyer of the launch event (PDF, 133 KB)

Promotional flyer of the report (PDF, 231.55 KB)

Press release


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