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The banking industry in Latin America reached a watershed in L. 2001. Foreign capital participation ebbed for the first time since market reforms and deregulation unleashed an explosion of acquisitions [...]

Latin America's banking sector has managed a series of financial crises, both within and without the region, relatively well. Broader, more extensive explorations of the Latin American market by European and North American banks have furnished the region with a significant cushion against sudden reversals in international capital flows and provided a crucial impetus to force an accelerating pace of market development and product innovation., Latin America has suffered a series of financial blows but it has shown remarkable resilience The banking environment in Latin America has weathered a series of harsh financial shocks both [...]

Several factors influenced the evolution of Latin America's banking industry in the 1990s. While Mexico's currency crisis and reprivatization efforts reshaped its banking sector, the lifting of restrictions on foreign ownership were enacted in Venezuela. On the other hand, Argentina and Brazil's efforts to eliminate inefficiency and inadequate profitability led to the removal of investment restrictions. Meanwhile, Chilean banks have expanded its regional presence and broadened its mass-market consumer programs., Latin American banking has come to be dominated by an emerging elite of institutions formed during a hectic period of restructuring and privatisation. A decade of sweeping financial sector restructuring [...]

Improvement in the Latin American banking industry is attributed to regional consolidation, privatization and internationalization policies. Two giant bank mergers were made in Chile, while Peru's privatization and financial liberalization freed the country's Banco de Credito, thereby increasing loans by 9% and non-interest bearing deposits by 37 in the 1st qtr. from past quarter levels. Opening the Latin American banking industry to foreign banks produced more capital and fostered industrial competition., Consolidation, internationalisation and the withdrawal of government from banking are the key factors in the transformation of the Latin banks. Latin American banking is in the midst of a transformation [...]

Mexican Pres. Ernesto Zedillo launched the debt restructuring and recapitalization programs to suppress the 1994 banking crisis and prevent successive banking insolvencies. Debt relief has also been extended to home mortgage holders who were given discounts on monthly instalments starting at 30% and gradually descending for the next 10 years. Finally, debt equity swaps had made many banks major shareholders in various firms., A series of innovative debt-relief and recapitalisation programmes are aimed at containing the banking crisis and preventing a chain reaction of failures. The Mexican banking environment has improved sharply since [...]

It will take a long time for the Mexican financial system to recover from the devastation caused by the currency crisis that started in Dec. 1994. Although the economy is slowly stabilizing with the help of Pres. Ernesto Zedillo's strict fiscal and monetary program, the banking industry is expected to feel the impact the peso's collapse for a long time to come. Nevertheless, the battered financial sector has a chance to recover if a thorough shakeout occurs., The peso crisis wreaked havoc with the Mexican economy but a tough fiscal programme promises results. The shock therapy has broken the fever, but Mexico's battered financial system faces a [...]

The financial crisis that hit Mexico caused Pres Ernest Zedillo to allow the devaluation of the Mexican peso by as much as 40%, a move that has badly undermined the credibility of the Zedillo administration. The devaluation move could not have come at a worse time, since Mexico had already been suffering from nonperforming debt and a proliferation of new domestic banks. As a result of the peso's freefall, the Mexican government has allowed investors to own shares of businesses from a restricted 30% to a full 100%., The peso's plunge sent shock waves through the financial system, undermining investor confidence. Was the Mexican miracle just a mirage? The peso's 40% plunge from mid-December to early January has [...]

Prospects for Brazil's financial services industry appear promising, as the sector continues to show signs of improved recovery. Despite the country's declining economic performance since 1994, the sector managed to generate record-breaking revenue growth for 1999. In fact, market statistics show that financial and banking institutions recorded an astonishing 1,216% profit increase in the first half of 1999 alone. This monumental gain was achieved in spite of increased interest rates and devaluation., Brazilian banks have reported surprisingly good results, setting the stage for a rebound in 2000 The Brazilian banking industry's record first-half earnings in the midst of the nation's deepest economic [...]

The profound transformation of the Mexican banking sector continues even as the 21st century approaches and its new face will hinge on crucial decisions by regulators, legislators and investors in the coming months. Some analysts have raised the issue of whether Banco Nacional de Mexico and Bancomer SA will eventually be forced to merge to preserve their long-standing market leadership in the face of extensive foreign inroads into the once monopolistic Mexican banking business., The government has some crucial decisions to make during the next few months The difficult and lengthy recovery of the Mexican banking industry from the financial crisis spawned by the [...]

The political opponents of Argentinian Pres Carlos Menem are exerting pressure on him to forego cuts in the 1999 federal budget as the national elections scheduled for Oct 1999 loom closer. However, averting the planned cuts will weaken Argentina's response to a recession and put it in a bad light, considering the International Monetary Fund is monitoring its economic performance. Despite the slowdown, the banking industry has performed credibly, consolidating into five major banks and enjoying sufficient liquidity., Robert Taylor reports on how the political parties are trying to use Argentina's economic worries for their own gain The Argentine financial sector has weathered a difficult year of diminished [...]

Mexico is still haunted by the peso devaluation crisis even if it had three years of good economic growth. The country may finally exorcise the ghost of its economic collapse in 1996 after the Mexican Congress finally approved financial reforms and restructured foreign debts exceeding $60 billion incurred since 1994. However, the country's banking industry is poised for a comeback at a time of weakening consumption and investment. External shocks such as Brazil's crisis have unstabilized local capital and currency markets., Financial reforms and debt restructuring have put Mexico back on track Nearly three years into an otherwise robust economic expansion, Mexico enters 1999 still haunted by the peso-devaluation legacy of [...]

Brazil's financial services industry is showing remarkable resilience in spite of an economic downturn. The strength of the banking sector can be attributed to a sweeping financial reform initiated by Pres Fernando Henrique Cardoso. However, the tough fiscal and monetary policies implemented by Cardoso has resulted in the decline in consumer spending and business investment and an increase in unemployment in the country. This economic crisis comes at a time when Cardoso is launching another campaign to run for reelection in 1998., The financial crisis that swept global markets in early August could scarcely have arrived at a worse time for Brazilian President Fernando Henrique Cardoso, locked in a spirited campaign to [...]

The dynamic growth of Mexico's banking sector since 1995 is hampered by the volatility of the country's economic and political situations. While banks reported increased asset quality and improved deposit taking and profitability, most growth expectations due to the robust economy are still not achieved. Despite the significant decline of the ratio of past-due debts to total loan portfolios, the entire banking industry still has an estimated $9 billion in past-due loan exposure., Mexico's banks are reporting increased profits and improved asset quality, yet the turnround in lending has been slower with flat growth this year. Mexican banking has come a long way [...]

The emergence of Brazil as one of the most lucrative investment banking markets in Latin America has triggered a consolidation trend among domestic and foreign banking companies. These activities are not only aimed at acquiring a considerable share of the market, but restoring the stability of loan and credit services as well. The growth is expected to continue with the appointment of central bank president Gustavo Franco, who vowed to maintain the smooth flow of capital in the country., Brazil's attempt to consolidate its position, through the reform process launched three years ago, is providing acquisition opportunities, both for domestic banks, and for foreign banks looking for a foothold. [...]

Argentina is starting to recover from financial and economic recession brought about by the departure of capital from the country and the peso crisis. The country's banking industry is showing signs of life with the rising volume of deposits and loan demands. This may be attributed to finance minister Roque Fernandez's efforts to continue the reforms implemented by former minister Domingo Cavallo., After being nearly floored by the peso crisis and the loss of former finance minister Domingo Cavallo, president Carlos Menem has come back fighting. Argentina is beginning to discover economic [...]

Foreign banks are setting operations in Colombia in their bid to establish presence in the Latin American market. The country should become even more attractive to foreign investors because the business and banking outlook for 1997 is quite promising. Signs of an economic turnaround and declining threats to the presidency of Ernesto Samper are facilitating the stabilization of inflation and reduction of trade and fiscal deficits. Guerrilla warfare and drug trade are problems that may undermine this potential., Colombia is the favourite spot for banks looking for a foothold in Latin America. Meanwhile beleaguered President Ernesto Samper struggles to dampen guerrilla warfare and a flourishing drug trade. A [...]

Venezuelan Pres. Rafael Caldera may be facing the end of the country's economic and financial crisis following the major progress in turnaround of the Banco Latino failure which drove the banking industry and the Venezuelan economy into trouble. The Caldera administration has accepted IMF recommendations for deregulation and market reform. It remains to be seen whether Caldera's 'Agenda Venezuela' can control inflation and sustain economic recovery without arousing opposition which prevented the previous IMF program in 1989., An IMF agreement - its first since 1989 - has secured Venezuela an escape from its economic crisis. Now the hard part begins as President Rafael Caldera's 'Agenda Venezuela' aims [...]

The year after Peruvian Pres. Alberto Fujimori's reelection has proven to be a mildly disappointing one as the economy appears to be slowing down in its leap towards economic resurgence. This situation is expected as the election's spending as well as policies such as privatization and foreign debt renegotiation had to take a back seat to political concerns. Experts believe, nonetheless, that Peru will never slide back to its erstwhile sorry economic situation during the period before Fujimori assumed the presidency., President Alberto Fujimori's stabilisation programme, which helped sweep him back into power last year, has run up against some obstacles. Has the Peruvian economic miracle turned sour? A series of [...]

Political scandals that rocked Brazil's banking industry involving the Central Bank and Banco National may severely affect the banking sector and the economy in the future. The failure of Central Bank officers to discover fraudulent transactions raised questions on the industry's credibility. Moreover, it may force President Fernando Cardoso to abort his plans to reform the financial industry., President Cardoso has been walking the coals during the recent banking scandals. But his reform programme has not lost its stride. Brazilian banking is in the midst of a revolution [...]

A series of events in 1995 contributed to the decline of Ecuador's economy. VP Alberto Dahik left the country to avoid prosecution for bribery and corruption in October, while the public rejected government reform proposals during a referendum in November. Pres. Duran Ballen has also abandoned plans to award a build-operate-transfer contract for a $620 million trans-Andean oil pipeline and suspended the nation's privatization program., Destiny, immaturity, mismanagement -- whatever the cause the country deserves a better fate than it has now, says Robert Taylor Consider this scenario: economic activity slowing down, inflation heating up, [...]

Brazilian Pres. Fernando Henrique Cardoso's major economic reform is succeeding despite great odds and the pessimistic forecasts of observers of the country's economic situation. The results have, in fact, been dramatic as the country not only survived the investment crisis in the rest of Latin America brought about by the Mexican peso debacle but also sustained the strength of the 'real' in international currency markets. Cardoso faces a bigger challenge: how to win legislative approval for his far-reaching economic agenda., President Cardoso plans to follow up the success of the real plan with further constitutional reforms. Is the Brazilian miracle for real - or will it prove merely another cruel [...]

The deregulation of Mexico's banking industry will take a back seat to the Aug. 21, 1994 presidential elections. At present, PRI candidate Ernesto Zedillo, a member of the team which wrote the opem-market reforms of the Salinas administration, has a clear edge over other presidential contenders. The sector, which is set to open its doors to subsidiaries of foreign banks, remains sensitive to political and financial movements that foster uncertainty., Mexico's banking upheavals approach climax as this month's elections take centre stage. The revolution in Mexican banking that began with the system's privatisation at the start of the decade is [...]

Almost all investment managers are now developing some type of 'active quant' computer system to determine their investment strategies, and it is likely that the benefits of computerised fund management will soon be felt by private investors. These systems have already been shown to be able to produce superior returns, and their use is expected to expand rapidly. However, this will not necessarily mean the end of the traditional role of the fund manager.

Robert Taylor examines the regional impact of the Argentine fallout ARGENTINA'S MOST SEVERE RUN on banking system deposits in more than six years has led monetary authorities across the region [...]

The unrelenting drought in Brazil has forced President Cardoso to implement energy rationing. Robert Taylor examines its effect on the banking industry DIMMED STREET LIGHTING, mushrooming industrial furloughs, shortened banking [...]

With Argentina standing on the verge of recession, her inhabitants are pinning their hopes on the county's charismatic economy minister Domingo Cavallo. ARGENTINA'S ECONOMY minister Domingo Cavallo is scrambling to [...]

Robert Taylor reports on Domingo Cavallo's return to the political fray in recession-wracked Argentina The return of convertibility plan architect Domingo Cavallo to centre stage in the middle of Argentina's [...]

The high-profile mergers in Chile's banking sector are sending a clear message to medium-sized institutions to join the hunt, reports Robert Taylor The balance of power in chile's hotly competitive [...]

Robert Taylor says Brazil's banking institutions will need time to integrate the acquisitions of the past year The remarkably strong 2000 performance of Brazil's leading private sector financial groups has [...]

Unlike his predecessor, new Mexican president Vicente Fox starts his rule with a strong economy. The challenge, says Robert Taylor, is maintaining it. The presidential inauguration of Vicente Fox Quesada [...]

Robert Taylor says Ecuador's Noboa regime should begin to see the success of its fiscal efforts this year if prudence lasts and multilateral support is forthcoming One year after a [...]

Robert Taylor reports on the Argentine government's struggle to build a firewall against imminent sovereign debt default Argentina's struggle to extricate itself from a deepening morass of economic, political and [...]

Alberto Fujimori's surprise resignation has plunged the country's fragile economy into uncertainty and, as Robert Taylor reports, the future looks increasingly bleak The tumultuous political events that culminated in President [...]

Chile is suffering a paradoxical lack of consumer and business confidence and a mixed outlook for the banking industry, despite a growing economy The stubbornly unyielding scepticism and mistrust between [...]

The prolonged tussle over the proposed privatisation of Brazillian bank Banespa has taken some of the shine off the country's economic resurgence. Brazil's extraordinary economic resurgence from the depths of [...]

Robert Taylor reports that the financial and political climate is hotting up as banks fight it out for M&A domination and as the present administration interferes with financial autonomy Venezuelan [...]

Political elections which could pave the way for financial modernisation provide the backdrop for the largest merger in the history of Mexican commercial banking. The inexorable currents of historic change [...]

You often have to be cruel to be kind, and Argentina's fiscal and market reform programme is no exception. Robert Taylor assesses the new administration's talent for economic management Six [...]

Peru's embattled president is waiting for the second round of voting in the presidential election. Peru's tumultuous 2000 presidential campaign already has transformed the nation's political landscape, galvanising opposition forces [...]

The return of General Pinochet is a mixed blessing for the new president. The currents of history, political change and financial globalisation are converging to sweep Chile toward a fundamental [...]

It's carnival time already for Brazil's banks, as they shake off the sloughs of last year's fiscal and economic disasters. Robert Taylor reports Resurgent industrial production, renewed currency and price [...]

With presidential elections in July, the Zedillo administration is determined to fulfil its economic goals. The administration that five years ago inherited Mexico's worst economic and financial crisis since the [...]