LILIANA ROJAS-SUAREZ
February 2011
Credit Booms: Seven-Year Event Window
(Deviation from HP trend Real Credit Per-Capita)
Source: Mendoza and Terrones (2008) Based on 49 episodes in the period 1960-2006
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Calibration of the Capital Framework
Capital requirements and buffers (all numbers in percent)
Common Equity (after
deductions)
Tier 1 Capital
Total Capital
Minimum
4.5
6.0
8.0
Conservation Buffer
2.5
Minimum plus conservation buffer
7.0
8.5
10.5
8.5 - 11
10.5 - 13
Countercyclical buffer range*
0 - 2.5
Total
7 - 9.5
* Common equity or other fully loss absorbing capital
Source: Basel Committee on Banking Supervision
Capital Requirements in Latin America - 2010 (to Q2)
Brazil
Chile
Colombia
Mexico
Peru
Minimum Regulatory Capital to Risk
Weighted Assets
11
10 - 12
9
10
10
Actual Capital to Risk Weighted
Assets
18
13.8
18.1
17
13.5
14.1
10.2
14.3
15
10.5
(in percent, %)
Actual Tier 1 Capital to Risk
Weighted Assets
Source: IMF and National Authorities
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Percentage of Banking System Assets Held by Systemically Important
Financial Institutions (%)
Argentina
Brazil
Chile
Colombia
Mexico
Peru
22.8
15.3
30.8
16.8
69
27.5
Source: Economist Intelligence Unit and Financial Times
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