Subordinate financialisation in Chile: banking dynamics in a Global Market-Based financial system
In the third session of the IPEG financialisation in Latin America webinar series, we turn our attention to the dynamics of subordinate financialisation in Chile within the broader Latin American context. Over the past four decades, financial deregulation, liberalisation of cross-border flows, and pension system privatization have profoundly reshaped the Chilean financial sector. Grounded in a post-Keynesian framework and based on empirical qualitative research, Dr Cerpa Vielma’s analysis highlights Chile’s subordinate position in the global financial system, focusing on how reliance on market-based credit to expand banking credit flows affects Chilean banks’ liquidity preference. The discussion will examine the transformation of banking liabilities due to wholesale funding dependence, the role of institutional investors, particularly pension funds and foreign asset managers, in shaping domestic market dynamics, and the macroeconomic implications stemming from global investor sentiment and liquidity volatility. Chile’s case sheds light on how subordinate financialisation can intensify domestic economic and financial instability, increasing vulnerability to global financial shocks and market fluctuations.
Speaker
Nicole Cerpa Vielma is an Assistant Professor in Global Studies at the University of California, Santa Barbara. Her research interests lie at the intersection of global political economy, global money and banking, and the dynamics of international financial subordination in emerging market economies, with a particular focus on Latin America and Chile. Dr Cerpa Vielma’s scholarly contributions have been published in the Cambridge Journal of Economics, RIPE, as well as in co-edited books. She currently co-leads two large research projects examining Chilean pension funds, asset-manager capitalism, and green finance initiatives in Latin America. Nicole holds a PhD in Economics from the University of Leeds and actively participates in international collaborations aimed at promoting heterodox economic perspectives.
Registration will close two hours before the event begins.