Journal of the Banking Supervisor No. 70

A resilient banking system for any scenario

Emerging markets and developing economies are facing a number of adverse factors, amid widespread high inflation and a rapid slowdown in global growth. Growth forecasts for the short to medium term have deteriorated in all regions, in part due to the implementation of restrictive policies aimed at curbing high inflation and over indebtedness. Nevertheless, financial authorities in the region maintain a specific shared vision of stability in their expectations regarding the economic, financial, social, and political events that could take place during 2023.

During 2023, it is expected that the development of global and regional financial markets will be affected by the uncertainty derived from the normalization process of monetary policies in advanced economies, trade and geopolitical tensions in Euro-Asia, and volatility in commodity prices. The regulatory and supervisory authorities of the region must, among other things, focus on restoring consumer confidence and supporting the implementation of strategies that promote a scenario of sustainable recovery. Some of the methods employed by financial authorities have been financial innovation and environmentally responsible investments.

In this context, this new edition of the Journal of the Banking Supervisor presents a series of recommended readings that compile the most current guidelines and principles related to the evaluation of the reforms and the effectiveness of the implementation of Basel III, best practice guidelines on prudential regulation of crypto-assets, and new resolution frameworks on resolvability. In addition, a series of readings related to macro-financial expectations for 2023 and relevant topics on the technical agenda of supervisors are recommended: inflation, low growth, sustainability, and the impact of non-bank institutions on the world’s financial systems. The research and analysis section of this edition of the Journal shares documents related to the regulation of digital innovation, macro-financial risks, and sustainable finance.

Finally, in the last section of the Journal, Members share news and information on prudential and non-prudential financial regulations issued in their jurisdictions during the fourth quarter of 2022. This compilation is an effort to expand communication and understanding among the region about the approaches used to address different topics of joint interest in financial regulation.

Categories: Journal of the Banking Supervisor
Author: ASBA