Financial Integration in Central America

©image: CentralAmericaData.COM

Jorge Barboza, economist from the Executive Secretariat of the Central American Monetary Council (known as SECMCA in Spanish), analyzes progress and remaining actions to be taken toward Central American financial supervision and regulation.

"Regionalization of the various financial groups is becoming reality in Central America. Ignoring it or acting as though it didn't exist is impossible because it becoming more and more important. As a result, effective cross-border supervision will be key to the region's future financial stability. While national banking laws have been modernized in recent years, this has not been coordinated regionally leaving significant differences in standards of regulation. This can lead to regulatory loopholes and financial system vulnerability".

Source: Central American Executive Secretariat of the Monetary Council

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