UID:
almafu_9958120571202883
Umfang:
1 online resource (42 p.)
ISBN:
9786612846021
,
9781462350698
,
1462350690
,
9781455208173
,
1455208175
,
9781282846029
,
1282846027
,
9781455200849
,
1455200840
Serie:
IMF Working Papers
Inhalt:
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.
Anmerkung:
Description based upon print version of record.
,
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. The Uruguayan System of Dynamic Provisioning; 1. Bank Loans and Dynamic Provisions; 2. Share of Specific and Dynamic Provisions in Total Loans; 3. Evolution of Dynamic Provisions With and Without Loan Losses; 4. Effect of Dynamic Provisioning on the Return on Assets; III. The Sufficiency of Dynamic Provisions under Macroeconomic Shocks; A. Empirical Approach; B. Simulation Results; 1. Set of Shocks Depleting the Stocks of Dynamic Provisions; 2. Coverage of Expected Loan Losses under Different Stress Test Scenarios
,
IV. Simulations Using Alternative Provisioning FormulasA. Characteristics of Alternative Formulas; B. Simulation Results; 5. Stock of Uruguayan Dynamic Provisions Under Different Formulas; 3. Correlations Between Provisioning Flows and Changes in Credit & Activity, 2004-09; V. Conclusions; References; Footnotes
Sprache:
Englisch
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