Fundamentals sound; strong growth projected throughout region

The recent crisis in US sub-prime mortgage instruments will have only a limited impact on Latin American financial services firms and their customers.  The assets of banking and insurance related firms in Latin America are held mostly in local sovereign securities with some cross-border blue chip government, bank or corporate securities. 

Latin American and Caribbean governments are also insulated from the credit crunch. In recent years, sovereigns have become more resilient by deepening domestic capital markets, effectively reducing their exposure to external capital.