Provisioning Requirements in Latin America: Where Does the Region Stand?

This policy note focuses on provisioning practices in Latin America, a supervisory tool that if well designed can contribute to strengthen both micro and macro prudential regulation. For that purpose this note briefly explains the importance of an adequate regulatory regime for provisioning requirements and identifies key features of an adequate provisioning regime, describes the most salient characteristics of provisioning regimes in Latin America, and constructs an index to assess the quality of the provisioning regimes in the selected countries.