tailieunhanh - Brazil: Financial System Stability Assessment

The plan of the paper is that evidence on the effect of financial education and literacy is first surveyed. Some of the behavioural biases most relevant to financial markets are then identified and implications for policy are considered. A fuller taxonomy of extant biases is provided in the Appendix. Finally, debiasing strategies appearing in the literature are discussed. Unfortunately, there is little work that directly considers whether biases can be eliminated by appropriate training, especially in a financial context. There is a clear need for more research in this area | 2012 International Monetary Fund July 2012 IMF Country Report No. 12 206 Brazil Financial System Stability Assessment This paper was completed on June 2012. The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of Brazil or the Executive Board of the IMF. The policy of publication of staff reports and other documents by the IMF allows for the deletion of market-sensitive information. Copies of this report are available to the public from International Monetary Fund Publication Services 700 19th Street . Washington . 20431 Telephone 202 623-7430 Telefax 202 623-7201 E-mail publications@ Internet http International Monetary Fund Washington . INTERNATIONAL MONETARY FUND BRAZIL Financial System Stability Assessment Prepared by the Monetary and Capital Markets and Western Hemisphere Departments Approved by José Vinals and Nicolás Eyzaguirre June 20 2012 This report is based on the work of a joint IMF-World Bank Financial Sector Assessment Program FSAP mission to Brazil during March 6-21 2012. The team comprised Dimitri G. Demekas head of mission IMF Augusto de la Torre head of mission World Bank Dawn Chew Marc Dobler Mercedes Garcia-Escribano Heedon Kang Pamela Madrid-Angers Joonkyu Park Guilherme Pedras José Tuya consultant Christian Schmieder and Rodolfo Wehrhahn IMF Laura Ard Mariano Cortes Erik Feyen Catiana Garcia-Kilroy Alain Ize Andrei Milyutin Margaret Miller Jonathan Katz consultant and Roberto Rocha World Bank and was assisted by Carlos Fernandez-Valdovinos IMF Resident Representative in Brazil. Like the rest of the Brazilian economy the financial sector is exposed to the effects of volatility in international markets for commodities and capital but the flexible exchange rate strong macro- and microprudential policy frameworks sound balance sheets high capital and profitability and ample liquid assets provide significant risk mitigants. Although systemic risks .