Biblioteca Digital de VanguardiaMonetary policy in Honduras in an environment of financial liberalization and a banking market oligopoly
The purpose of this article is to provide a critical analysis of the difficulties of managing Honduran monetary policy after the financial liberalization initiated in 1990. One of its consequences was the need for liquidity in the financial system, which demands an interbank market of loans with guaran...
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| Formato: | Revistas |
| Lenguaje: | Español |
| Publicado: |
Universidad de Cartagena
2013
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| Acceso en línea: | https://revistas.unicartagena.edu.co/index.php/panoramaeconomico/article/view/811 |
| Sumario: | The purpose of this article is to provide a critical analysis of the difficulties of managing Honduran monetary policy after the financial liberalization initiated in 1990. One of its consequences was the need for liquidity in the financial system, which demands an interbank market of loans with guarantees or collateral (repos). The study finds that the Monetary Authority has met its goal of controlling inflation. However, the oligopolistic banking market structure has not allowed further development and expansion in the debt market or in reducing the cost of debt issue. In addition, the data suggest that the Central Bank’s interest rate is only one of the determinants on the interest rates charged by the financial system. An additional finding shows the tendency to invest a significant portion of bank obligations in government bonds. The study suggests the need to develop and execute a monetary policy which reduces the opportunity for financial speculation. |
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