Financial institutions see growth in Latin America, as region works to build sustained economic momentum.(Headline)(Brief article)

Although growing economic stability and strong international demand have helped drive recent growth and trade surplus in Latin America, many Latin American countries still face the nagging challenges of translating economic momentum to sustainable progress--while reducing their dependency on foreign capital.

New research from TowerGroup finds that, amid the ebb and flow of commodities prices and local economic cycles, financial services institutions in Latin America have been faring well. Regional revenues for a selected set of diversified international banks in Latin America increased just over 19 percent annually between 2003 and 2005, with local competitors performing even better.

Access to credit, trade finance, microlending, stock exchanges, and pension funds have provided channels of growth. However, sudden capital flight and speculation in shallow markets remain a dark cloud to this silver lining--causing many local crises. Further economic progress in Latin ...