THE PARADIGM OF FINANCIAL SYSTEMIC RISK MANAGEMENT IN HONDURAN BANKING REGULATION (DECREE 160-2016)

Abstract

This article analyzes the logic of the 2016 banking regulation reform in Honduras, which occurred after  he forced liquidation of Banco Continental. This reform adopts new international banking regulation  tandards, such as the Basel Accords. The creation of a new risk supervision system, which includes the  upervision of systemic risks, is based on the idea that financial risk is not limited to individual banks, but an spread from one bank to another and lead to a generalized financial crisis. To prevent these crises, egulatory authorities must adopt measures to identify and manage systemic risks. In the case of onduras, the 2016 reform introduced a series of measures to strengthen banking regulation and prevent ystemic risks. The historical-logical method was used, which allows the object to be characterized from an external, historical perspective, but is complemented by a logical approach, which studies its intrinsic  haracteristics. It is concluded that with the reform contained in Decree 160- 2016, the systemic risk   anagement paradigm is adopted in Honduran banking regulation.