Latin American Capital Markets

INDEX 531institutional investorsbond markets, 308, 316capital market role, 5,6-7, I 19-23,124-25, 126-27corporate governance reforms, 131,139-41,453,456,491-92crossover 13derivatives markets, 374domestic market influences, 127^3European market integration, 164foreign market access, 56vs. individual, 41, 65,86Latin America, 22-25,40, I 10, 143^5policy issues, 145-51,501 -2SME financing, 395, 397-98See also human capital; institutionalinvestors; shareholder protectioninstitutions, socioeconomicalliances and partnerships, 109,247Brazil, 21,22-24,459developing economies, 6, 107-12IFIs, 104importance of supporting marketdevelopment, 28infrastructure improvements, 241in Latin America, 102-7,206-7policy issues, 508-10professional associations, 265SMEs, 397specialization of, 242-^43strategies for improving, 22-25See also corporate governance; individualinstitutionsinsurance investmentsbond markets, 315-16competition among investors, 143consolidation issue, 41and corporate governance, 448derivatives markets, 338n2economic development role, 492,502investment rules for, 142in Latin America and Caribbean, 123inOECD, 121protection in Europe, 175in U.S., 120-21, 133integration, global marketaccounting standards, 213benefits of, 6, 15-16challenges of, 59emerging markets, 28,41exchanges, 109,247marketing organizations, 198regulation difficulties, 46securities commissions' role, 47-^48small economies, 105See also regional market integrationInter-American Development Bank (IDB), 207,235-36,261interest ratesArgentine fiscal crisis, 95-96bond markets, 24, 326Brazil's problems, 305decline in crossover investment, 13Guatemala, 103institutional investor independence from,129liberalization goal, 303replacement for private instruments, 114vulnerabilities of banking system, 101IntermarketTrading System (ITS), 183intermediaries, marketas alternate trading system sponsors, 51banks as, 98capital markets as, 92-93derivatives markets, 350developing vs. developed economies,91-92economic growth, 164-65foreign presence in Mexico, 43,44globalization, 38and Internet, 72-73,75, 80-81lack of trust in Latin America, 479large firms as model for, 100self-reguation issues, 58SME financing, 398See also exchanges, securities; venturecapitalInternational Accounting Standards Board(IASB), 19-20,220-25, 231-33International Finance Corporation (IFC), 439,459international financial institutions (IFIs), 104international investment in local marketsbenefits for developing economies, 27,109bond markets, 304, 307, 316, 320capital market contribution, 3depository receipts, 14-15domestic institutions' role, 130Copyright © by the Inter-American Development Bank. All rights reserved.For more information visit our website: www.iadb.org/pub