The Peruvian economy in recent decades has grown in step with growth in the financial system. However, banking penetration as a proportion of GDP has remained static at around 30% which is below other countries in the region, even those with lower GDP per capita. Access to products in the formal...

Low contribution levels to pension schemes in Latin America are an enormous obstacle limiting the implementation of a broad-based social security system. Contribution rates measured as a ratio of contributors to the total labour force stand at an average of 40%, or 60% in the best of cases....

After analyzing the different reasons why the financial system and also the regulatory framework induced procyclicality, this paper reviews the experiences of three countries which have introduced dynamic provisioning as a regulatory tool to limit procyclicality. The case of...