IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-0-230-50212-3_3.html
   My bibliography  Save this book chapter

The Fruits of Interest: Financial Liberalization and Banking in Central America

In: Towards Sustainable Development in Central America and the Caribbean

Author

Listed:
  • Trevor Evans

Abstract

In the first half of the 1990s, the banking systems in most Central American countries underwent a major change following the introduction of policies of financial liberalization.2 The advocates of financial liberalization argue that the elimination of government controls will, by allowing interest rates to rise, encourage higher savings and thereby make more funds available for investment. They claim that higher interest rates will in addition result in finance being directed towards the most profitable investment projects, and that this will enable countries to achieve higher rates of growth. They also believe that a competitive system of privately owned banks is required so that costs will be kept to a minimum, and banks will have an incentive to seek out successful clients.

Suggested Citation

  • Trevor Evans, 2001. "The Fruits of Interest: Financial Liberalization and Banking in Central America," Palgrave Macmillan Books, in: Anders Danielson & A. Geske Dijkstra (ed.), Towards Sustainable Development in Central America and the Caribbean, chapter 3, pages 30-56, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-50212-3_3
    DOI: 10.1057/9780230502123_3
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-0-230-50212-3_3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.