Modernizing Bank Regulation in Support of Financial Deepening : The Case of Uruguay / Torsten Wezel, Mario Mansilla, Gustavo Adler.

Format:

Book

Government document

Author/Creator:

Wezel, Torsten.

Contributor:

Adler, Gustavo.

Mansilla, Mario.

International Monetary Fund. Monetary and Capital Markets Department.

Series:

IMF Working Papers; Working Paper ; No. 2009/199

IMF Working Papers

Language:

English

Subjects (All):

Banks and banking--State supervision--Uruguay.

Banks and banking.

Liquidity (Economics).

Physical Description:

28 p. : ill.

Edition:

1st ed.

Place of Publication:

Washington, D.C. : International Monetary Fund, 2009.

Language Note:

English

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.

Contents:

Intro

CONTENTS

I. Introduction

II. Background

III. Characteristics of the Uruguayan Credit Market

A. General Developments in Bank Lending

B. Bank Funding and Credit Allocation

C. Currency and Maturity Structure

D. Risks of a Sustained Credit Expansion

IV. Prudential Regulation of the Uruguayan Banking Sector

A. Overview of the Current Prudential Framework

B. Evolution of Prudential Regulation Since the 2002-03 Crisis

C. Loan Classification and Provisioning System

D. Liquidity Requirements

E. Other Issues

V. Conclusions

TABLES

1. Selected Financial Soundness Indicators

2. Specific Loan Loss Provisions in Percent of Non-Performing Loans

3. Key Regulatory Norms

4. Description of Categories Used in the Loan Classification System

5. Provisioning Rates for Loan Categories in Latin American Countries

6. Prudential Regulation of Bank Liquidity in Latin American Countries

FIGURES

1. Credit Growth

2. Contribution to Change in Credit to NF Private Sector

3. Credit Growth by Sector and Currency, April 2008

4. Characteristics of Bank Lending

5. Breakdown of Lending by Sector

6. Currency and Maturity Structure, April 2008

7. Public Versus Private Banks

8. Credit in Selected Latin American Economies, 2000-07

9. Credit to the Non-Financial Sector, Non-Performing Loans and Loan Loss Provisions

10. Monthly Changes in Non-Performing Loans and Dynamic Provisions

REFERENCES

References.

Notes:

"September 2009".

Includes bibliographic referferences.

Description based on print version record.

ISBN:

9786612844072

9781462309351

1462309356

9781452765198

1452765197

9781282844070

1282844075

9781451873467

1451873468

OCLC:

648791091