Using macroprudential policies in Latin America: which, how and why?

Summary

-In the last years, macroprudential policies have increasingly been incorporated into the toolkit of regulators in Latin America. -The macrofinancial environment, the updating of global regulatory recommendations and, in certain jurisdictions, an interventionist bias have been the three main drivers of the adoption of macroprudential policies in the region. The importance of each one of these three drivers in every country varies considerably. -The focus of macroprudential regulation in Latin America has been on both capital and liquidity issues and, to a lower extent, on credit markets. -We expect macroprudential regulation to continue to be an important policy option in most Latin American countries in the years to come

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