Financial System Soundness in the Caribbean: An Initial Assessment

Worrell, DeLisle; Cherebin, Desiree; Polius-Mounsey, Tracy

doi:10.2139/ssrn.879880

Cited by 5 publications

(3 citation statements)

References 1 publication

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“…Are the Basel III recommendations and other macroprudential regulations relevant to Caribbean financial systems? Historically, financial systems in the Caribbean countries have been free of contagion from crises originating abroad (Worrell, Cherebin, and Polius-Mounsey 2001), with the notable exception of the 2007-2008 global financial crisis. However, there are several fundamental reasons to consider applying the new international standard in the region.…”

Section: Financial Regulation and Supervision In Caribbean Countriesmentioning

confidence: 99%

Economic Institutions for a Resilient Caribbean

Beuermann¹,

Schwartz²,

Reyes-Tagle³

et al. 2021

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This volume focuses on economic institutions defined as rules and organizational arrangements that, if they govern the design and implementation of fiscal and monetary policies, can better align those policies with long-run citizen interests. Specifically, the economic institutions covered are those that promote more sustainable fiscal management, adequate implementation of monetary policy, and more resilient financial systems. On fiscal management, the book covers public revenue administrations, public financial management systems, public debt management institutions, fiscal rules, medium-term fiscal frameworks, independent fiscal councils, and the design features of sovereign wealth funds. While pension schemes are not a fiscal institution, they are also analyzed because of the fiscal burden and contingencies that these systems may entail. In terms of institutions that support effective monetary policy, the focus is on the importance of central bank independence and transparency. On financial systems, the book analyzes the relevance of financial regulation and supervision to promote more stable and efficient markets that are better suited to confront challenges and more resilient against external shocks. Some institutional enhancements that foster access to credit and deeper financial systems are also analyzed.

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Section: Financial Regulation and Supervision In Caribbean Countriesmentioning

confidence: 99%

Economic Institutions for a Resilient Caribbean

Beuermann¹,

Schwartz²,

Reyes-Tagle³

et al. 2021

View full text Add to dashboard Cite

show abstract

“…Of these, Gonzalez-Hermosillo combines prudential indicators and macroeconomic variables, and Mulder, Perrelli and Rocha also include corporate balance sheet indicators and scores based on institutional features; the others use macroeconomic variables only. Discriminant analysis, incorporating macroeconomic and prudential variables, appears in Worrell, Cherebin and Polius-Mounsey (2001), and in Polius and Sahely (2003).…”

Section: Logit Probit and Discriminant Modelsmentioning

confidence: 99%

“…8 However, it is often not possible to obtain sufficient crisis points, for a single country, to permit country-by-country testing, and it is difficult to find a definition of financial crisis sufficiently general to allow for crosssectional tests. A more promising approach, reflected in the papers by Polius and Sahely (2003) and by Worrell, Cherebin and Polius-Mounsey (2001), is to test for the risk of failure of individual financial institutions, and use the results to forecast whether there is high risk of failure of a large number of institutions, institutions with a large market share, or institutions with the potential to cause contagion. Models of this kind do not forecast crises, and therefore do not suffer from the problems of identification, discussed in Bell and Pain (2000), which plague early warning models of crisis.…”

Section: Logit Probit and Discriminant Modelsmentioning

confidence: 99%