He International Monetary Fund (IMF) published, on Monday night, its periodic assessment, known as Article IV, in which it forecast a economic slowdown and a growth of 2% as a result of the droughtwhile analyzing various factors of the national macro and micro economy.
The agency’s analysts highlighted that, in the midst of the international turmoil caused by various bank failures in USAUruguay’s financial sector maintains “a solid position”, since the banks have weathered the covid-19 pandemic.
Regarding state banks, they considered that “they have large capital and liquidity reserves. “The liquidity reserves of the banks are more than sufficient to withstand strong financing pressures while contagion risks appear to be limited“, the document states.
As for some private banks, the IMF staff noted that “solvency risks” should be “addressed through appropriate capital supplements and restrictions on the distribution of dividends“, they ask.
The diagnosis of the Central Bank on the Uruguayan financial system
He Financial Stability Committee –composed of the BCU, the Bank Savings Protection Corporation and the Ministry of Economy and Finance (MEF)– affirmed that the domestic financial system is stable and in a position to face the challenges presented by an international panorama full of uncertainty.
“The very capabilities of the financial system, within which its solvency and liquidity levels stand out, determine that it is in a position to contribute to risk management, thus facilitating the present and future performance of the economy,” he said through a statement.
Meanwhile, the Financial System Report of the third quarter of 2022, which allows us to see the annual trajectory of the liquidity of banks in Uruguay, showed a 30-day ratio that remained stable over the last year, above 80%, while the 91-day ratio showed the same activity.
He tension scenario measured by the Superintendency of Financial Services The BCU for the last time in August 2022 showed that risk assets in a crisis scenario are 7.7% and in an adverse one 16.07%.
Source: Ambito
