Uruguay : Financial Sector Review
The study reviews Uruguay's financial sector, identifying a well-developed banking sector, which reflects off-shore banking growth stimulated by regional macroeconomic instability, and by the country's strict national banking laws. By con...
| Main Author: | |
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| Format: | Pre-2003 Economic or Sector Report |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2000/11/729310/uruguay-financial-sector-review http://hdl.handle.net/10986/14458 |
| id |
okr-10986-14458 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
FINANCIAL DEVELOPMENT BANKING SYSTEMS MACROECONOMIC STABILIZATION ECONOMIC INSTABILITY BANKING LEGISLATION CAPITAL MARKET INTEGRATION GROSS DOMESTIC PRODUCT EMERGING ECONOMIES CONTRACTUAL SAVINGS PENSION FUNDS MUTUAL FUND RATING INSURANCE COMPANY RATINGS OPEN ECONOMIES FINANCIAL SYSTEMS DOMESTIC CAPITAL MARKETS FINANCIAL SERVICES DATA PROCESSING ELECTRONIC FUNDS TRANSFER SECURITIES TRANSACTIONS BANKING REGULATIONS STOCK MARKETS COMPETITIVENESS SERVICE EXPORTS MERCOSUR REGIONAL INTEGRATION LIQUIDITY POLICY PRIVATE SECTOR DEVELOPMENT STATE INTERVENTION LEGAL & REGULATORY FRAMEWORK SUPERVISORY STRUCTURES TRADING ARRANGEMENTS ACCOUNTING AFFILIATE AFFILIATES AGRICULTURE ARBITRAGE ASSET BACKED SECURITIES BALANCE SHEETS BANK ASSETS BANK LENDING BANK LIABILITIES BANK LOANS BANKING CRISIS BANKING REGULATION BANKING SECTOR BANKING SERVICES BANKING SYSTEM BANKRUPTCY BANKS BOARDS OF DIRECTORS BONDS BOOK VALUE CAPITAL ADEQUACY CAPITAL CONTROLS CAPITAL FLIGHT CAPITAL INFLOWS CAPITAL MARKETS CAPITAL REQUIREMENT CAPITALIZATION CAR CDS CENTRAL BANK CERTIFICATES OF DEPOSIT COMMERCIAL BANKS COMPARATIVE ADVANTAGE COMPARATIVE ADVANTAGES COMPETITIVENESS CONSUMER PROTECTION CONSUMER PROTECTION LEGISLATION CONTINGENT LIABILITIES CONTRACT ENFORCEMENT CPI DEBT DEBT OVERHANG DENOMINATED LOANS DEPOSIT INSURANCE DEPOSITORS DEPOSITS DEVALUATION DIRECT FINANCING DISINTERMEDIATION DIVIDENDS ECONOMIC ACTIVITY ELECTRONIC BANKING EMERGING MARKETS EXCHANGE RATE FINANCIAL DEEPENING FINANCIAL DISINTERMEDIATION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL RATIOS FINANCIAL SECTOR FINANCIAL SECTOR REFORM FINANCIAL SERVICES FINANCIAL TRANSACTIONS FISCAL YEAR FOREIGN ASSETS FOREIGN BANKS FOREIGN EXCHANGE GDP GLOBALIZATION GNP GOVERNMENT SECURITIES GROSS DOMESTIC PRODUCT GROWTH RATE HOUSING IMPORT QUOTAS INCOME INDEXATION INDIVIDUAL ACCOUNTS INEFFICIENCY INFLATION INSOLVENCY INSOLVENT BANKS INSURANCE INTEREST RATES INTERNATIONAL ACCOUNTING STANDARDS INTERNATIONAL FINANCIAL TRANSACTIONS IPO JUDICIAL SYSTEMS LABOR COSTS LABOR UNIONS LAWS LEGAL FRAMEWORK LEGISLATION LIMITED DEPOSIT INSURANCE LIQUIDATION LIQUIDITY MACROECONOMIC STABILITY MANDATES MONETARY POLICIES MORAL HAZARD MORTGAGE LENDING MUTUAL FUND MUTUAL FUNDS NET WORTH OIL OIL PRICES OPERATING COSTS OVERHEAD COSTS OVERVALUATION PARTIAL PRIVATIZATION PENALTIES PER CAPITA INCOME POPULATION GROWTH PORTFOLIOS POVERTY LINE PRICE CONTROLS PRICE SUBSIDIES PRIVATE BANKING PRIVATE BANKS PRIVATIZATION PRODUCTIVITY PROFITABILITY PROPERTY RIGHTS PRUDENTIAL REGULATIONS PUBLIC DEBT PUBLIC ENTERPRISES RATING AGENCIES REAL GDP RECESSION REGULATORY FRAMEWORK RETIREMENT RETURN ON ASSETS RETURN ON EQUITY RISK MANAGEMENT SAVINGS SECURITIES SECURITIES MARKETS SECURITIES TRADING SECURITIZATION STATE ENTERPRISES STATE OWNED BANKS STOCK EXCHANGES SUBSIDIARY TRANSPARENCY TRUSTS VALUATION VALUE ADDED WEALTH |
| spellingShingle |
FINANCIAL DEVELOPMENT BANKING SYSTEMS MACROECONOMIC STABILIZATION ECONOMIC INSTABILITY BANKING LEGISLATION CAPITAL MARKET INTEGRATION GROSS DOMESTIC PRODUCT EMERGING ECONOMIES CONTRACTUAL SAVINGS PENSION FUNDS MUTUAL FUND RATING INSURANCE COMPANY RATINGS OPEN ECONOMIES FINANCIAL SYSTEMS DOMESTIC CAPITAL MARKETS FINANCIAL SERVICES DATA PROCESSING ELECTRONIC FUNDS TRANSFER SECURITIES TRANSACTIONS BANKING REGULATIONS STOCK MARKETS COMPETITIVENESS SERVICE EXPORTS MERCOSUR REGIONAL INTEGRATION LIQUIDITY POLICY PRIVATE SECTOR DEVELOPMENT STATE INTERVENTION LEGAL & REGULATORY FRAMEWORK SUPERVISORY STRUCTURES TRADING ARRANGEMENTS ACCOUNTING AFFILIATE AFFILIATES AGRICULTURE ARBITRAGE ASSET BACKED SECURITIES BALANCE SHEETS BANK ASSETS BANK LENDING BANK LIABILITIES BANK LOANS BANKING CRISIS BANKING REGULATION BANKING SECTOR BANKING SERVICES BANKING SYSTEM BANKRUPTCY BANKS BOARDS OF DIRECTORS BONDS BOOK VALUE CAPITAL ADEQUACY CAPITAL CONTROLS CAPITAL FLIGHT CAPITAL INFLOWS CAPITAL MARKETS CAPITAL REQUIREMENT CAPITALIZATION CAR CDS CENTRAL BANK CERTIFICATES OF DEPOSIT COMMERCIAL BANKS COMPARATIVE ADVANTAGE COMPARATIVE ADVANTAGES COMPETITIVENESS CONSUMER PROTECTION CONSUMER PROTECTION LEGISLATION CONTINGENT LIABILITIES CONTRACT ENFORCEMENT CPI DEBT DEBT OVERHANG DENOMINATED LOANS DEPOSIT INSURANCE DEPOSITORS DEPOSITS DEVALUATION DIRECT FINANCING DISINTERMEDIATION DIVIDENDS ECONOMIC ACTIVITY ELECTRONIC BANKING EMERGING MARKETS EXCHANGE RATE FINANCIAL DEEPENING FINANCIAL DISINTERMEDIATION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL RATIOS FINANCIAL SECTOR FINANCIAL SECTOR REFORM FINANCIAL SERVICES FINANCIAL TRANSACTIONS FISCAL YEAR FOREIGN ASSETS FOREIGN BANKS FOREIGN EXCHANGE GDP GLOBALIZATION GNP GOVERNMENT SECURITIES GROSS DOMESTIC PRODUCT GROWTH RATE HOUSING IMPORT QUOTAS INCOME INDEXATION INDIVIDUAL ACCOUNTS INEFFICIENCY INFLATION INSOLVENCY INSOLVENT BANKS INSURANCE INTEREST RATES INTERNATIONAL ACCOUNTING STANDARDS INTERNATIONAL FINANCIAL TRANSACTIONS IPO JUDICIAL SYSTEMS LABOR COSTS LABOR UNIONS LAWS LEGAL FRAMEWORK LEGISLATION LIMITED DEPOSIT INSURANCE LIQUIDATION LIQUIDITY MACROECONOMIC STABILITY MANDATES MONETARY POLICIES MORAL HAZARD MORTGAGE LENDING MUTUAL FUND MUTUAL FUNDS NET WORTH OIL OIL PRICES OPERATING COSTS OVERHEAD COSTS OVERVALUATION PARTIAL PRIVATIZATION PENALTIES PER CAPITA INCOME POPULATION GROWTH PORTFOLIOS POVERTY LINE PRICE CONTROLS PRICE SUBSIDIES PRIVATE BANKING PRIVATE BANKS PRIVATIZATION PRODUCTIVITY PROFITABILITY PROPERTY RIGHTS PRUDENTIAL REGULATIONS PUBLIC DEBT PUBLIC ENTERPRISES RATING AGENCIES REAL GDP RECESSION REGULATORY FRAMEWORK RETIREMENT RETURN ON ASSETS RETURN ON EQUITY RISK MANAGEMENT SAVINGS SECURITIES SECURITIES MARKETS SECURITIES TRADING SECURITIZATION STATE ENTERPRISES STATE OWNED BANKS STOCK EXCHANGES SUBSIDIARY TRANSPARENCY TRUSTS VALUATION VALUE ADDED WEALTH World Bank Uruguay : Financial Sector Review |
| geographic_facet |
Latin America & Caribbean Uruguay |
| description |
The study reviews Uruguay's
financial sector, identifying a well-developed banking
sector, which reflects off-shore banking growth stimulated
by regional macroeconomic instability, and by the
country's strict national banking laws. By contrast,
the country's capital market is underdeveloped, with a
market capitalization of less than one percent of GDP,
compared to the average ten percent in emerging markets.
Similarly, the contractual savings sector, including
pension/mutual funds, and insurance companies, is highly
incipient. The small open economy has significant
implications for its financial sector strategy, since its
domestic economy is not large enough to sustain a domestic
financial sector, particularly considering increased border
trade in financial services, via electronic banking, and
securities trading. Thus, its alternative may be to become
highly competitive in banking services, including exporting
these services. Based on substantiated evidence, it is
suggested that the comparative advantage of Uruguayan banks
is gradually eroding, but should it become competitive, the
country could export some banking services, provided it
explores setting up a regional stock exchange within
MERCOSUR, which may well improve liquidity, rather than
revive local exchanges; improve the constrained private
participation (resulting from a preponderant State role);
and, strengthen regulatory, and supervisory framework. |
| format |
Economic & Sector Work :: Pre-2003 Economic or Sector Report |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Uruguay : Financial Sector Review |
| title_short |
Uruguay : Financial Sector Review |
| title_full |
Uruguay : Financial Sector Review |
| title_fullStr |
Uruguay : Financial Sector Review |
| title_full_unstemmed |
Uruguay : Financial Sector Review |
| title_sort |
uruguay : financial sector review |
| publisher |
Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2000/11/729310/uruguay-financial-sector-review http://hdl.handle.net/10986/14458 |
| _version_ |
1764427678787567616 |
| spelling |
okr-10986-144582021-04-23T14:03:16Z Uruguay : Financial Sector Review World Bank FINANCIAL DEVELOPMENT BANKING SYSTEMS MACROECONOMIC STABILIZATION ECONOMIC INSTABILITY BANKING LEGISLATION CAPITAL MARKET INTEGRATION GROSS DOMESTIC PRODUCT EMERGING ECONOMIES CONTRACTUAL SAVINGS PENSION FUNDS MUTUAL FUND RATING INSURANCE COMPANY RATINGS OPEN ECONOMIES FINANCIAL SYSTEMS DOMESTIC CAPITAL MARKETS FINANCIAL SERVICES DATA PROCESSING ELECTRONIC FUNDS TRANSFER SECURITIES TRANSACTIONS BANKING REGULATIONS STOCK MARKETS COMPETITIVENESS SERVICE EXPORTS MERCOSUR REGIONAL INTEGRATION LIQUIDITY POLICY PRIVATE SECTOR DEVELOPMENT STATE INTERVENTION LEGAL & REGULATORY FRAMEWORK SUPERVISORY STRUCTURES TRADING ARRANGEMENTS ACCOUNTING AFFILIATE AFFILIATES AGRICULTURE ARBITRAGE ASSET BACKED SECURITIES BALANCE SHEETS BANK ASSETS BANK LENDING BANK LIABILITIES BANK LOANS BANKING CRISIS BANKING REGULATION BANKING SECTOR BANKING SERVICES BANKING SYSTEM BANKRUPTCY BANKS BOARDS OF DIRECTORS BONDS BOOK VALUE CAPITAL ADEQUACY CAPITAL CONTROLS CAPITAL FLIGHT CAPITAL INFLOWS CAPITAL MARKETS CAPITAL REQUIREMENT CAPITALIZATION CAR CDS CENTRAL BANK CERTIFICATES OF DEPOSIT COMMERCIAL BANKS COMPARATIVE ADVANTAGE COMPARATIVE ADVANTAGES COMPETITIVENESS CONSUMER PROTECTION CONSUMER PROTECTION LEGISLATION CONTINGENT LIABILITIES CONTRACT ENFORCEMENT CPI DEBT DEBT OVERHANG DENOMINATED LOANS DEPOSIT INSURANCE DEPOSITORS DEPOSITS DEVALUATION DIRECT FINANCING DISINTERMEDIATION DIVIDENDS ECONOMIC ACTIVITY ELECTRONIC BANKING EMERGING MARKETS EXCHANGE RATE FINANCIAL DEEPENING FINANCIAL DISINTERMEDIATION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL RATIOS FINANCIAL SECTOR FINANCIAL SECTOR REFORM FINANCIAL SERVICES FINANCIAL TRANSACTIONS FISCAL YEAR FOREIGN ASSETS FOREIGN BANKS FOREIGN EXCHANGE GDP GLOBALIZATION GNP GOVERNMENT SECURITIES GROSS DOMESTIC PRODUCT GROWTH RATE HOUSING IMPORT QUOTAS INCOME INDEXATION INDIVIDUAL ACCOUNTS INEFFICIENCY INFLATION INSOLVENCY INSOLVENT BANKS INSURANCE INTEREST RATES INTERNATIONAL ACCOUNTING STANDARDS INTERNATIONAL FINANCIAL TRANSACTIONS IPO JUDICIAL SYSTEMS LABOR COSTS LABOR UNIONS LAWS LEGAL FRAMEWORK LEGISLATION LIMITED DEPOSIT INSURANCE LIQUIDATION LIQUIDITY MACROECONOMIC STABILITY MANDATES MONETARY POLICIES MORAL HAZARD MORTGAGE LENDING MUTUAL FUND MUTUAL FUNDS NET WORTH OIL OIL PRICES OPERATING COSTS OVERHEAD COSTS OVERVALUATION PARTIAL PRIVATIZATION PENALTIES PER CAPITA INCOME POPULATION GROWTH PORTFOLIOS POVERTY LINE PRICE CONTROLS PRICE SUBSIDIES PRIVATE BANKING PRIVATE BANKS PRIVATIZATION PRODUCTIVITY PROFITABILITY PROPERTY RIGHTS PRUDENTIAL REGULATIONS PUBLIC DEBT PUBLIC ENTERPRISES RATING AGENCIES REAL GDP RECESSION REGULATORY FRAMEWORK RETIREMENT RETURN ON ASSETS RETURN ON EQUITY RISK MANAGEMENT SAVINGS SECURITIES SECURITIES MARKETS SECURITIES TRADING SECURITIZATION STATE ENTERPRISES STATE OWNED BANKS STOCK EXCHANGES SUBSIDIARY TRANSPARENCY TRUSTS VALUATION VALUE ADDED WEALTH The study reviews Uruguay's financial sector, identifying a well-developed banking sector, which reflects off-shore banking growth stimulated by regional macroeconomic instability, and by the country's strict national banking laws. By contrast, the country's capital market is underdeveloped, with a market capitalization of less than one percent of GDP, compared to the average ten percent in emerging markets. Similarly, the contractual savings sector, including pension/mutual funds, and insurance companies, is highly incipient. The small open economy has significant implications for its financial sector strategy, since its domestic economy is not large enough to sustain a domestic financial sector, particularly considering increased border trade in financial services, via electronic banking, and securities trading. Thus, its alternative may be to become highly competitive in banking services, including exporting these services. Based on substantiated evidence, it is suggested that the comparative advantage of Uruguayan banks is gradually eroding, but should it become competitive, the country could export some banking services, provided it explores setting up a regional stock exchange within MERCOSUR, which may well improve liquidity, rather than revive local exchanges; improve the constrained private participation (resulting from a preponderant State role); and, strengthen regulatory, and supervisory framework. 2013-07-22T20:04:49Z 2013-07-22T20:04:49Z 2000-11-15 http://documents.worldbank.org/curated/en/2000/11/729310/uruguay-financial-sector-review http://hdl.handle.net/10986/14458 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Pre-2003 Economic or Sector Report Economic & Sector Work Latin America & Caribbean Uruguay |