Reforma Financiera in Costa Rica
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Date
1992-05
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Publisher
Ohio State University. Department of Agricultural, Environmental, and Development Economics
Abstract
This paper describes the measures adopted by the Central Bank of Costa Rica in the i980s during a process of financial liberalization. It describes actions concerning quantitative credit controls, interest rate determination, minimum reserve requirements, open market operations, rediscounting, and other instruments of credit and monetary policies. Greater competition in deposit mobilization has been promoted and a money market was developed. The Central Bank was granted additional independence. The authority of the Superintendency of Banks was expanded. Regulatory avoidance followed the regulations and many loopholes were found to finance the public sector.