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

Torsten Wezel, Mario Mansilla and Gustavo Adler

No 2009/199, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; loan; bank; private bank; liquidity; Credit growth; credit risk; loan classification; loan provisioning; bank liquidity; regulatory reform; Banco de la República Oriental del Uruguay; bank supervisor; B. bank funding; balance sheet data; bank lending; quality standard; loan portfolio; loss methodology; liquidity risk management practice; credit market; loan delinquency; loan quality; Loans; Credit; Liquidity requirements; Central and Eastern Europe (search for similar items in EconPapers)
Pages: 28
Date: 2009-09-01
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Citations: View citations in EconPapers (3)

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