Costa Rica: Financial System Stability Assessment

Costa Rica: Financial System Stability Assessment

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This paper presents key findings of the Financial System Stability Assessment for Costa Rica. The Costa Rican financial system exhibits some immediate strengths deriving from an environment with limited historic volatility and a predominant state participation in financial intermediation. Nonetheless, important underlying macroeconomic and structural tensions could undermine the stability of the system in the event of a major shock, or compromise its medium-term sustainability should tensions continue to accumulate. Main sources of tension on the macroeconomic front are a large fiscal deficit and a high public debt as well as a high and rising dollarization.Salient Measures Adopted During 2002 Bank Supervision a€c Joint Supervision of Offshore Banks. ... Norm that details the manner in which financial groups, included public bank-based groups, are to calculate capital adequacy on a solo and a consolidated basis. ... and supervise offshore banks and certain onshore nonbank financial intermediaries (e.g., leasing, factoring, and credit card companies).

Title:Costa Rica: Financial System Stability Assessment
Author:International Monetary Fund
Publisher:International Monetary Fund - 2003-04-17


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