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

Author

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  • Torsten Wezel
  • Mr. Mario Mansilla
  • Gustavo Adler

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.

Suggested Citation

  • Torsten Wezel & Mr. Mario Mansilla & Gustavo Adler, 2009. "Modernizing Bank Regulation in Support of Financial Deepening: The Case of Uruguay," IMF Working Papers 2009/199, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2009/199
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    References listed on IDEAS

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    Cited by:

    1. Edgardo Demaestri & Jorge Ottavianelli & Gustavo Ferro, 2015. "Integracion de la supervisión financiera en el Banco Central: La experiencia de Uruguay," Estudios Economicos, Universidad Nacional del Sur, Departamento de Economia, vol. 32(64), pages 31-51, january-j.
    2. International Monetary Fund, 2011. "Uruguay: Selected Issues Paper," IMF Staff Country Reports 2011/063, International Monetary Fund.
    3. International Monetary Fund, 2010. "Uruguay: Selected Issues," IMF Staff Country Reports 2010/043, International Monetary Fund.

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