Dynamic Loan Loss Provisions in Uruguay

Dynamic Loan Loss Provisions in Uruguay
Author: Torsten Wezel
Publisher: International Monetary Fund
Total Pages: 24
Release: 2010-05-01
Genre: Business & Economics
ISBN: 1455200840


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This paper assesses the merits of countercyclical loan loss provisioning in Uruguay. Using a stress test methodology, it quantifies the protection against macroeconomic shocks provided by the stock of dynamic provisions accumulated since 2001 and finds that medium-sized shocks would be fully absorbed, offsetting the additional costs caused by rising specific provisions. In addition, the paper simulates the path of dynamic provisions under the formulas used in Spain, Peru and Bolivia, showing that the alternative paths diverge significantly from the actual buildup and in part better conform to the Uruguayan credit cycle.


Dynamic Loan Loss Provisions in Uruguay
Language: en
Pages: 24
Authors: Torsten Wezel
Categories: Business & Economics
Type: BOOK - Published: 2010-05-01 - Publisher: International Monetary Fund

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This paper assesses the merits of countercyclical loan loss provisioning in Uruguay. Using a stress test methodology, it quantifies the protection against macro
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Categories: Business & Economics
Type: BOOK - Published: 2012-05-01 - Publisher: International Monetary Fund

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Type: BOOK - Published: 2012-05-01 - Publisher: International Monetary Fund

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Language: en
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Authors: International Monetary Fund
Categories: Business & Economics
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