Luiz Awazu Pereira da Silva
Central Bank of Brazil
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Featured researches published by Luiz Awazu Pereira da Silva.
In: S. Kim and M. D. McKenzie, editor(s). International Banking in the New Era: Post-Crisis Challenges and Opportunities. IFR Vol. No 11 ed. Bingley: Emerald; 2010. p. 191-254. | 2010
Pierre-Richard Agénor; Luiz Awazu Pereira da Silva
Purpose – To discuss, from the perspective of developing countries, recent proposals for reforming international standards for bank capital requirements. Methodology/approach – After evaluating, from the viewpoint of developing countries, the effectiveness of capital requirements reforms and progress in implementing existing regulatory accords, the chapter discusses the procyclical effects of Basel regimes, and suggests a reform proposal. Findings – Minimum bank capital requirements proposals in developing countries should be complemented by the adoption of an incremental, size-based leverage ratio. Originality/value of chapter – This chapter contributes to enlarge the academic and policy debate related to bank capital regulation, with a particular focus on the situation of developing countries.
Archive | 2017
Pierre-Richard Agénor; Luiz Awazu Pereira da Silva
The effects of capital requirements on risk-taking and welfare are studied in a stochastic overlapping generations model of endogenous growth with banking, limited liability, and government guarantees. Capital producers face a choice between a safe technology and a risky (but socially inefficient) technology, and bank risk-taking is endogenous. Setting the capital adequacy ratio above a structural threshold can eliminate the equilibrium with risky loans (and thus inefficient risk-taking), but numerical simulations show that this may entail a welfare loss. In addition, the optimal ratio may be too high in practice and may concomitantly require a broadening of the perimeter of regulation and a strengthening of financial supervision to prevent disintermediation and distortions in financial markets.
Archive | 2016
Luiz Awazu Pereira da Silva; Pierre-Richard Agénor
This paper discusses, from an analytical and operational perspective, the use of reserve requirements and loan loss provisions as countercyclical macroprudential instruments. In recent years both of these instruments have been used extensively in Latin America and elsewhere in the world. The first part of the paper sets the stage with a discussion of the rationale, in the presence of financial frictions, for using macroprudential regulation to mitigate financial system procyclicality. The second part reviews the general arguments, as well as the recent empirical evidence for Latin America, associated with the use of reserve requirements and loan loss provisions. The third part provides a normative analysis of the ways through which countercyclical reserve requirements and cyclically adjusted (or, more commonly called, dynamic) provisioning rules should be formulated, independently and jointly, to address concerns arising from procyclicality and financial volatility. Optimal countercyclical rules are discussed from the perspective of how these rules can either minimize a composite measure of economic volatility (combining measures of both macroeconomic and financial volatility) or maximize social welfare. The last part brings together the lessons for policymakers that can be drawn from the analysis.
International Journal of Central Banking | 2013
Pierre-Richard Agénor; Koray Alper; Luiz Awazu Pereira da Silva
Structural Change and Economic Dynamics | 2010
Pierre-Richard Agénor; Otaviano Canuto; Luiz Awazu Pereira da Silva
Journal of International Money and Finance | 2014
Pierre-Richard Agénor; Koray Alper; Luiz Awazu Pereira da Silva
Journal of Financial Stability | 2014
Pierre-Richard Agénor; Luiz Awazu Pereira da Silva
Journal of Financial Stability | 2009
Pierre-Richard Agénor; Luiz Awazu Pereira da Silva
Washington DC, USA: Inter-American Development Bank; 2013. | 2013
Pierre-Richard Agénor; Luiz Awazu Pereira da Silva
International Finance | 2012
Pierre-Richard Agénor; Luiz Awazu Pereira da Silva