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Regulatory and Supervisory Reform: the Latin American Perspective. Madrid, June 2009. List of topics. The process of securitization of mortgage loans in the US was “flawed”.
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Regulatory and Supervisory Reform: the Latin American Perspective Madrid, June 2009 B A N C O C E N T R A L D E C H I L E
List of topics • The process of securitization of mortgage loans in the US was “flawed”. • If systemically important financial institutions are forced to unwind positions rapidly (or in extreme cases close) this can cause mayor disruptions in financial markets. • Bank capital requirements need to be modified. • Banking regulation should incorporate macro-prudential concerns. • Other reforms pending in the region should not be put off -- specially those relating to aspects of financial infrastructure that have proven to work in the current crisis episode.
Changes in Net Pension Fund Fx Position and CHP MM US$ CHP/US$
FX transactions in Chile FX Transactions (MM US$)
Regulatory and Supervisory Reform: the Latin American Perspective Madrid, June 2009 B A N C O C E N T R A L D E C H I L E
Hikes in short term rates... 30 day peso and dólar rates (%) 14 14 12 12 10 10 8 8 6 6 4 4 2 2 0 0 08 Mar. May. Jul. Sep. Nov. 09 Mar. Traded CDs ($) Libor+spread on-shore (US$) Lehman Brothers Source: Central Bank of Chile.