Are Bolivian Banks Solvent? An Introduction to the Problem of Capital Adequacy
Are Bolivian Banks Solvent? The short answer is that they meet local regulatory requirements, but this does not exhaust the analysis. This post explains how the Capital Adequacy Ratio works, why the quality of capital matters, and how the way assets are weighted can change the interpretation of solvency. The case of BUN stands out because it combines the lowest CAP with the least regulatory density. The conclusion is that Bolivia should move towards a more internationally comparable prudential framework.
May 7, 2026
