...Differing Senses of Urgency: In contrast to Europe and to a certain extent the U.S., Latin American (LATAM) bank regulators have not massively followed the Bank of International Settlements guidance on bank supervision (BIS III). Adherence to these regulatory principles is varied, with Brazil and Mexico at the forefront. A second group of countries is migrating toward these principles (Argentina, Colombia, Peru, Panama and Uruguay). The remaining LATAM countries monitored by Fitch continue to operate under older frameworks. Varied Capital Regimes Limit Comparability: More robust regulatory capital frameworks across the region have enhanced banking system strength and paved the way toward increased bank penetration. However, varied regulatory capital definitions reduce comparability of capital positions among the region's banks and limit investors' ability to quickly compare issuers. So far, just a few banks in Brazil and Mexico have issued new BIS III compliant securities (Tier 1 and Tier...
