Modernizing Bank Regulation in Support of Financial Deepening: The Case of Uruguay

By Torsten Wezel, Mario Mansilla, Gustavo Adler

September 1, 2009

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Torsten Wezel, Mario Mansilla, and Gustavo Adler. Modernizing Bank Regulation in Support of Financial Deepening: The Case of Uruguay, (USA: International Monetary Fund, 2009) accessed December 22, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper studies how Uruguay's regulatory framework was gradually strengthened to address shortcomings identified during the 2002-03 crisis, to align with international standards and, more recently, to deal with cyclical pressures resulting in an acceleration of bank lending. In particular, regulatory reforms pertaining to loan classification and provisioning as well as liquidity requirements are reviewed and evaluated against best practices. The paper concludes that prudential regulation in Uruguay now generally conforms to high standards while also embracing innovative elements such as dynamic provisioning.

Subject: Credit, Credit risk, Financial institutions, Financial regulation and supervision, Liquidity requirements, Loan classification, Loans, Money

Keywords: B. bank funding, Balance sheet data, Banco de la República Oriental del Uruguay, Bank, Bank lending, Bank liquidity, Bank supervisor, Central and Eastern Europe, Credit, Credit growth, Credit market, Credit risk, Liquidity, Liquidity requirements, Liquidity risk management practice, Loan, Loan classification, Loan delinquency, Loan portfolio, Loan provisioning, Loan quality, Loans, Loss methodology, Private bank, Quality standard, Regulatory reform, WP

Publication Details

Pages:

28
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2009/199
Stock No:

WPIEA2009199
ISBN:

9781451873467
ISSN:

1018-5941

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