Uruguay : Financial Sector Review

[摘要] The study reviews Uruguay'sfinancial sector, identifying a well-developed bankingsector, which reflects off-shore banking growth stimulatedby regional macroeconomic instability, and by thecountry's strict national banking laws. By contrast,the country's capital market is underdeveloped, with amarket capitalization of less than one percent of GDP,compared to the average ten percent in emerging markets.Similarly, the contractual savings sector, includingpension/mutual funds, and insurance companies, is highlyincipient. The small open economy has significantimplications for its financial sector strategy, since itsdomestic economy is not large enough to sustain a domesticfinancial sector, particularly considering increased bordertrade in financial services, via electronic banking, andsecurities trading. Thus, its alternative may be to becomehighly competitive in banking services, including exportingthese services. Based on substantiated evidence, it issuggested that the comparative advantage of Uruguayan banksis gradually eroding, but should it become competitive, thecountry could export some banking services, provided itexplores setting up a regional stock exchange withinMERCOSUR, which may well improve liquidity, rather thanrevive local exchanges; improve the constrained privateparticipation (resulting from a preponderant State role);and, strengthen regulatory, and supervisory framework.

[发布日期] 2000-11-15 [发布机构] Washington, DC

[学科分类] 社会科学、人文和艺术（综合）

[关键词] FINANCIAL DEVELOPMENT;BANKING SYSTEMS;MACROECONOMIC STABILIZATION;ECONOMIC INSTABILITY;BANKING LEGISLATION