However, market participants may not be of this view, hence the reluctance to open the credit markets. Lender of last resort facilities – how wide should it extend?
Measured by various criteria, including capital/asset ratios and loan loss reserves, banking systems in various Latin American nations are significantly healthier than they were going into the Debt Crisis. While the region has further to go in strengthening its financial systems, and important problems remain, the progress achieved to date has been important to the overall recovery of Latin American economies in the 1990s.