Latin American Shadow Financial Regulatory Committee

(Special, December 14, 2000).- Joining the efforts of the Shadow Financial Regulatory Committees of the United States, Europe and Japan, a group of prestigious Latin American economists with extensive experience in banking, finance and the regulation of financial services organized the Latin American Shadow Financial Regulatory Committee, LASFRC, in Rio de Janeiro, Brazil in July 2000. The group is currently formed by distinguished representatives from six countries of the Latin American region:

• Argentina Roque Fernández, former Argentine Minister of Finance, now professor in the CEMA University. Pablo Guidotti, former Argentine Vice Minister of Finance, now professor of Torcuato Di Tella University.
• Brazil Gustavo Franco, former president of the Central Bank of Brazil, now with the Catholic Pontifical University of Rio de Janeiro. Pedro Carvalho de Mello, professor of the University of Sao Paulo. Claudio Contador, professor of the Federal University of Rio de Janeiro.
• Chile Roberto Zahler, former president of the Central Bank of Chile, now president of Zahler y cia.
• Peru Liliana Rojas-Suárez, former chief economist for Latin America of Deutsche Bank, now researcher of the International Economics Institute.
• Uruguay Ernesto Talvi, Center of Economic and Social Policy Research.
• Venezuela Ricardo Hausmann, former chief economist of the Inter-American Development Bank, now researcher at Harvard University Ruth de Kivroy, former president of Central Bank of Venezuela, now president of Síntesis Financiera.

In addition to the Latin American members, LASFRC has two additional members: Harald Benink, president of the European Shadow Financial Regulatory Committee, and Charles Calomiris, member of the US Shadow Financial Regulatory Committee, who is one of the internationally most recognized experts on financial matters.

Independence of the Committee The Latin American Shadow Financial Regulatory Committee meets three times a year - including the annual meeting with their colleagues from the committees of Europe, Japan and the United States. The shadow function of LASFRC relates to following and critically analyzing the regulatory structures of financial institutions and markets. At the end of each meeting, LASFRC holds an international press conference in which it makes a public statement on the issues discussed at the meeting. The Committee is completely independent of providers, regulators and supervisors of financial services.

Analytic mission Analysis of the regulatory structure is based on existing and proposed regulations, both national and international, and on recommendations made in international forums such as the Basle Committee and the Group of 30 (or G3?), as well as relevant academic research. The Committee attempts to transform concepts from academic writings into specific policy recommendations on certain areas, such as those to be discussed by LASFRC over the coming years:

1. The impact of proposals to reform the architecture of the international financial system in line with the functioning of Latin American financial institutions.
2. Guides for design of financial regulation services.
3. Pros and cons of universal banks and insurance banking.
4. Development of capital markets in Latin America.
5. Banks and derivatives.
6. Electronic payment services by non-financial entities.
7. Supervision of financial conglomerates and other institutions not related to the sector.
8. Capital requirements - including the new debate on the role of internal and external risk ratings, and subordinated debt - and state ownership and/or institutional financial support.

First Meeting The first official meeting of the Committee – including the international press conference - will be held on December 16 and 18 in São Paulo, Brazil. The keynote topic is "Reform of the international financial architecture. A Latin American perspective."

The Latin American Shadow Financial Regulatory Committee has the financial support of CAF without which this first meeting in San Paulo would not be possible. The Committee is completely independent and autonomous in offering its opinions.