does integrated supervision work in emerging markets-the case of bolivia--
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DOES INTEGRATED SUPERVISION WORK IN EMERGING MARKETS-THE CASE OF BOLIVIA--. PRESENTATION BY Pablo Gottret, Ph.D World Bank Senior Economist and Former Superintendent of Pensions, Insurance and Securities of Bolivia. - PowerPoint PPT PresentationTRANSCRIPT
DOES INTEGRATED SUPERVISION WORK IN EMERGING MARKETS-THE CASE OF BOLIVIA--
PRESENTATION BYPablo Gottret, Ph.D
World Bank Senior Economist and Former Superintendent of Pensions, Insurance and Securities of Bolivia
THE RATIONALE OF THE MERGER: THE RATIONALE OF THE MERGER: INTERSECTORIAL RELATIONSHIPSINTERSECTORIAL RELATIONSHIPS
OBJECTIVES AND VISION SET FOR THE SUPERINTENDENCY OF PENSIONS,
INSURANCE AND SECURITIES
OBJECTIVES: Promote and control the prudent and transparent sustainable growth of the sectors under its supervision.
VISION: Institutional investors channeling long term internal savings through the capital markets to the real sector, infrastructure and services, on the basis of risk rated instruments (investment grade or better) according to a prudent portfolio requirement which generates a market rate of return for such savings.
INSTRUMENTS AND WORK ETHICSINSTRUMENTS: Organized under 4 pillarsRegulation: Draft and issue (according to mandate) appropriate
regulation for the capital markets, pension and insurance laws.Supervision: Supervise compliance of regulationInformation: Ensure availability and access to on time and accurate
information regarding the sectors under supervision, market behavior and the supervised institutions.
Education: Educate the population regarding the different markets and the rights and obligations of the different economic agents in those markets.
WORK ETHICS: Honesty, Transparency, Professionalism and Team Work.
Impact of the Merger on the Bolivian
Capital Market
9
377
208
98
61
415
255
330
133
279
7643
256238
60
138
216203
244
198
192
185 197
200
0
60
120
180
240
300
360
420
Dec/92
Jun/93
Dec/93
Jun/94
Dec/94
Jun/95
Dec/95
Jun/96
Dec/96
Jun/97
Dec/97
Jun/98
Dec/98
Jun/99
Dec/99
Jun/2000
Dec/2000
Jun/2001
Dec/2001
Jun/2002
Jul/2002
Aug/2002
Sep/2002
Oct/2002
Nov/2002
Dec/2002
MUTUAL FUNDS PORTFOLIOMUTUAL FUNDS PORTFOLIO ((inin US$ MILLIONS US$ MILLIONS - at end of each period) - at end of each period)
DDeec-1992 c-1992 toto DecDec-2002 -2002
BBOLIVIAN STOCK EXCHANGEOLIVIAN STOCK EXCHANGE TRANSACTION RATES OF RETURNTRANSACTION RATES OF RETURN
(Fixed Income Securities - 28 day averages in US$)(Fixed Income Securities - 28 day averages in US$) SeptemberSeptember 2001 2001 toto DecemberDecember 2002 2002
7.16
5.585.24
4.05
4.76
3.19
2.62
3.29
5.39
6.02
4.80
3.26 3.132.87
2.15
0.67 0.681.01
1.21
2.85
8.408.78
2.25
4.79
3.84
3.28
2.65
1.56 1.51 1.601.88
3.24
6.47
7.39
2.94
4.214.00
4.08
5.21 5.18
2.10
4.114.77
3.13 2.83
4.07
4.93
3.81
0.00.51.01.52.02.53.03.54.04.55.05.56.06.57.07.58.08.59.0
SEP OCT NOV DIC ENE FEB MAR ABR MAY JUN JUL AGO SEP OCT NOV DIC
TRADING REPOS GENERAL
SHAREHOLDERS IN MUTUAL FUNDS SHAREHOLDERS IN MUTUAL FUNDS (N° of INVESTORS - at end of each period)(N° of INVESTORS - at end of each period)
DDeec-199c-19988 toto DecDec-2002 -2002
14,595
12,198
9,552
16,437
13,675
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
VVOLUMESOLUMES T TRADED IN THERADED IN THE B BOLIVIANOLIVIAN S STOCKTOCK E EXCHANGEXCHANGE ((in in US$ MUS$ MILLIONSILLIONS, Period 199, Period 19988-200-20022))
3,608
2,359
1
1,6681,673
3,345
6 3 72 91500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
1998 1999 2000 2001 31/12/ 2002
FIXED INCOME SHARES
1,165
1,366
2,730 2,675
1,181
1,084934615
509 495500
1,000
1,500
2,000
2,500
3,000
1998 1999 2000 2001 31/12/02
REPOS TRADING
VVOLUMESOLUMES T TRADED IN THERADED IN THE B BOLIVIANOLIVIAN S STOCKTOCK E EXCHANGEXCHANGE ((in in US$ MUS$ MILLIONSILLIONS, Period 199, Period 19988-200-20033))
SECURSECURIITIES TRADETIES TRADEDD IN THE BOLIVIAN STOCK IN THE BOLIVIAN STOCK EXCHANGE EXCHANGE
(YEAR 200(YEAR 20022, , percentagespercentages))
CENTRAL BANKREPAYMENT
DEPOSIT CERTIFICATES
0.19%
BOND COUPONS2.87%
SHORT TERM CORPORATE
BONDS0.06%
CENTRAL BANK BONDS6.68%
SHARES3.72%
SECURITIZATION BONDS1.25%
T-BILLS7.01%
LONG TERM CORPORATE
BONDS9.95%
TREASURE BONDS32.65%
TIME DEPOSITS35.62%
Total 2,450 US$ Millions
CORPORATE BONDS ISSUED
Year US$ Number of I ssue
1998 1,550,000 21999 5,000,000 22000 40,000,000 32001 247,000,000 62002 170,500,000 5
SECURITIZATIONS ISSUED
Year US$ Nunmber of I ssue
2001 4,000,000 1
2002 12,500,000 1
TREASURY BONDS ISSUED
Year Currency Kind of I ssue US$ TOTAL US$Bs Long Term 11,009,767.38Bs with value mantained to US$ Long Term 144,500,000.00US$ Long Term 11,780,000.00 167,289,767.38
1999 Bs with value mantained to US$ Long Term 157,500,000.00 157,500,000.00Bs with value mantained to US$ Long Term 142,500,000.00US$ Long Term 26,000,000.00US$ Central Bank Public Sale 114,408,000.00 282,908,000.00Bs with value mantained to US$ Long Term 137,000,000.00US$ Central Bank Public Sale 281,853,000.00 418,853,000.00Bs with value mantained to US$ Long Term 199,500,000.00US$ Central Bank Public Sale 76,665,000.00Bs with value mantained to Unit f or dwelling (UFV´s) Long Term 7,382,550.34 283,547,550.34
1998
2000
2001
2002
T-BILLS ISSUED
Year US$
2001 293,043,148
2002 175,601,381
Structure and Crisis
How the new structure helped during the crisis:• Depth of secondary markets for long term
instruments.• Supervision of Conglomerates• Relevance of supervising authority in decision
making
UNFINISHED JOB
Corporate Governance: Transparency, auditing and internal control systems, minority right protection.
Conflicts of Interest Regulation.Property Rights and RegistriesCrowding out and investment abroad.