TY - BOOK ID - 84655858 TI - Central Bank Financial Strength in Central America and the Dominican Republic AU - Swiston, Andrew. AU - Frantischek, Florencia. AU - Gajdeczka, Przemek. AU - Herman, Alexander. PY - 2014 SN - 1484387872 1484387481 148438802X 9781484388020 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Banks and banking, Central KW - Banker's banks KW - Banks, Central KW - Central banking KW - Central banks KW - Banks and banking KW - E-books KW - Accounting KW - Banks and Banking KW - Money and Monetary Policy KW - Institutions and the Macroeconomy KW - Monetary Systems KW - Standards KW - Regimes KW - Government and the Monetary System KW - Payment Systems KW - Monetary Policy KW - Central Banks and Their Policies KW - Banks KW - Depository Institutions KW - Micro Finance Institutions KW - Mortgages KW - Public Administration KW - Public Sector Accounting and Audits KW - Banking KW - Financial reporting, financial statements KW - Monetary economics KW - International reserves KW - Financial statements KW - Central bank balance sheet KW - Currencies KW - Money KW - Public financial management (PFM) KW - Central bank bills KW - Foreign exchange reserves KW - Finance, Public KW - Dominican Republic UR - https://www.unicat.be/uniCat?func=search&query=sysid:84655858 AB - This paper examines the financial strength of central banks in Central America and the Dominican Republic (CADR). Some central banks are working off the effects of intervention in distressed financial institutions during the 1990’s and early 2000’s. Their net income has improved since then owing to lower interest rates, a reduction in interest bearing debt, and recapitalization transfers. Claims on the government have fallen, but remain high and are typically reimbursed at below-market rates, and capital is negative when adjusting for this. Capital is sufficient to back a low inflation target given that the income position is supported by unremunerated reserve requirements. Capital is likely to increase over time, but only gradually, leaving countries vulnerable to macroeconomic risks. The capacity of CADR central banks to engage in macroeconomic stabilization would benefit from increased emphasis on low inflation as the primary objective of monetary policy and a stronger commitment by governments to recapitalization. ER -