economy and politics

Latin America has a financial system "very resilient": IDB president

Latin America has a financial system "very resilient": IDB president

The president of the Inter-American Development Bank (IDB), Ilan Goldfajn, said on Wednesday that Latin America has a “very resilient and supervised” financial system, after the uncertainty generated after the collapse of Silicon Valley Bank (SVB) and problems with financial entities in the United States and Europe.

The recent bankruptcies of SVB SIVB.O, valued at $209 billion, and Signature Bank SBNY.O, sparked fears throughout the financial system despite efforts by the US government to provide guarantees to depositors to try to mitigate the contagion.

Shares in Credit Suisse CSGN.S plunged more than 25% on Wednesday, putting Swiss authorities under pressure to intervene in the bank.

“The region has a very resilient and supervised financial system. The region has set a very good example of how the financial system is managed,” Goldfajn said in Panama City, where the IDB’s annual meeting is taking place.

“We hope that we are prepared for what is coming, which is not a surprise,” he added.

Leaders of the 48 member countries of the IDB participate in the event that is scheduled to launch the region’s annual macroeconomic report. Topics under discussion include poverty and inequality; climate crisis and green transition; biodiversity; gender, diversity and inclusion; sustainable and inclusive infrastructure; and regional integration.

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