EconPapers    
Economics at your fingertips  
 

Currency Mismatch in the Banking Sector in Latin America and the Caribbean

Martin Tobal ()

No 2017-05, Working Papers from Banco de México

Abstract: Existing literature uses data based on the residence principle to proxy for currency mismatch. This paper collects data on assets and liabilities broken by currency of denomination in the banking sector in Latin America and the Caribbean. I show that the information used in the literature cannot substitute for data broken down by currency and present new facts. I observe a reduction in long foreign currency positions, with several banking sectors taking short positions after 2006. Employing a methodology that accounts for time-varying unobservable characteristics, this reduction is shown to be partially explained by the implementation of prudential policies.

Keywords: currency mismatch; prudential regulation; foreign currency risk; dollarization; synthetic control method (search for similar items in EconPapers)
JEL-codes: G18 G21 F30 (search for similar items in EconPapers)
Date: 2017-04
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.banxico.org.mx/publications-and-press/b ... -3036CB0A51C7%7D.pdf (application/pdf)

Related works:
Journal Article: Currency Mismatch in the Banking Sector in Latin America and the Caribbean (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bdm:wpaper:2017-05

Access Statistics for this paper

More papers in Working Papers from Banco de México Contact information at EDIRC.
Bibliographic data for series maintained by Dirección de Sistemas ().

 
Page updated 2019-04-19
Handle: RePEc:bdm:wpaper:2017-05