S\u00e3o Paulo \u2013 This Wednesday (21st), the International Monetary Fund (IMF) and the World Bank disclosed the conclusions drawn by their technicians after assessing the country\u2019s accounts from March 6th to 21st. in the document issued by the IMF, the two institutions claim that Brazil handled the financial crisis successfully and that the banking system is stable, with low risk exposure and capacity to withstand economic shocks. They warned, however, that high interest rates hamper the issuance of credit.<\/p>\n
The mission met with Brazilian authorities, among them the Central Bank chairman Alexandre Tombini, and was headed by Dimitris Demekas, of the IMF, and Augusto de la Torre, of the World Bank. The study is part of the Financial Sector Assessment Program (FSAP), which monitors the economy of emerging countries.<\/p>\n
According to the mission that visited the country, infrastructure and strong regulation of financial markets are important in maintaining stability. Nonetheless, the insurance sector\u2019s solvency requirements are more risk-sensitive and public-disclosure intensive. Thus, the study advises, supervision of brokers and groups should be enhanced. <\/p>\n
According to the two institutions, the operational independence of the Superintendence of Private Insurance (Susep, in the Portuguese acronym) and of the National Superintendence of Complementary Pensions (Previc) must be increased. The IMF and the World claimed that there are \u201cbudget and human resource restrictions\u201d and advises on the strengthening of regulatory agencies.<\/p>\n
The technicians conclude that Brazilian authorities were \u201cswift, flexible and successful\u201d in fighting the crisis, even though they believe \u201csome reforms\u201d could help the country prevent economic shocks in the future.<\/p>\n
\u201cThe authorities should be congratulated for their important role in maintaining financial stability. Besides the strict regulation of the banking sector and strong consolidated supervision, a range of measures to restore market stability and preserve confidence were used,\u201d according to the IMF and World Bank.<\/p>\n
To the technicians, there is progress to be made in long-term private finance, and that capital market development is impeded by the country\u2019s high interest rates. They believe that as interest rates fall further, they will spur mutual funds\u00b4 demand for longer-duration, well-articulated actions to enhance the supply of private securities, enabling the country to take advantage of the increased demand. <\/p>\n
*Translated by Gabriel Pomerancblum<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"
The Fund and the World Bank complimented Brazil on its accounts and performance through the crisis. Still, the two claim lower interest rates would help the country benefit from increased demand.<\/p>\n","protected":false},"author":2316,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[91],"tags":[],"class_list":{"0":"post-40986","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-economy"},"wps_subtitle":"The Fund and the World Bank complimented Brazil on its accounts and performance through the crisis. Still, the two claim lower interest rates would help the country benefit from increased demand.","_links":{"self":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts\/40986","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/users\/2316"}],"replies":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/comments?post=40986"}],"version-history":[{"count":0,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts\/40986\/revisions"}],"wp:attachment":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/media?parent=40986"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/categories?post=40986"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/tags?post=40986"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}