CNBC | 11/18/2009 12:00:00 AM
Latin America Poised to Recover From Crisis Faster Than U.S.
Nov 18--Latin America has the tools to recover quickly from the current financial crisis due to its stable and well-capitalized banking sector, while it will take the United States more time mainly because of high unemployment and low levels of consumer confidence, experts said during the 43rd Annual Assembly of the Latin American Federation of Banks (FELABAN) in Miami.
"Americans are now a bit more cautious, partly because there's still a lot of unemployment and consumption is lower as a result. Likewise, people are saving more and are more careful when it comes to borrowing. For example, the savings rate in September was 3.3%, higher than the 1.7% of 2007, although the figure remains low compared to the historical average," Wyss added.
Ricardo Marino, president of FELABAN, said the outlook for Latin America is much more encouraging, noting that the global crisis has affected the region less severely. "Latin America was one of the last regions to be affected by the crisis. It will be one of the first to recover. The region is much less vulnerable than in the past and its banks today are much more solvent, have greater liquidity and are well capitalized. Latin American banks haven't suffered and won't suffer the debilitating effects of the crisis that began in the United States," he added.
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