Assessing Banking Sector Soundness in A Long-Term Framework
The Case of VenezuelaeBook - 2006
This paper combines financial soundness indicators (FSIs) and stress-testing methodologies to provide a broad assessment of the soundness of Venezuela''s banking sector, based on a diagnosis of its structural and transient shortcomings. While the Venezuelan banking sector appears sound under current favorable economic conditions, it remains significantly vulnerable to cyclical downturns-which have been severe in the past. Banks are particularly exposed to interest rate and credit risks. This suggests that the strong FSIs may be partly the result of a conjunctural credit boom in the context of capital controls and very low real interest rates.
Publisher: Washington : International Monetary Fund, 2006
Copyright Date: ©2006
Branch Call Number: Electronic book
Characteristics: 1 online resource (33 pages)