Urugay

In: Business and Management

Submitted By prasad123
Words 3857
Pages 16
The Uruguay Banking Crisis was a major banking crisis that hit Uruguay in July 2002. In this, a massive run on banks by depositors caused the government to freeze banking operations. The crisis was caused by a considerable contraction in Uruguay's economy and by over-dependence on neighboring Argentina, which experienced an economic meltdown itself in 2001. In total, approximately 33% of the country's deposits were taken out of financial system and five financial institutions were left insolvent.
According to many sources, the banking crisis could have been avoided if Uruguayan authorities had properly regulated its banks. The Central Bank of Uruguay had trusted international banks to regulate themselves properly and was too lenient and slow in responding to the crisis
3.1 Interbank
In banking, managing liquidity is one of the main responsibilities. The bank has to ensure that it can meet the obligation when they come due without incurring unacceptable losses. For a particular bank, clients‟ deposits are its primary liabilities (tend to be liquid and on the short term based), whereas reserves and loans are its primary assets (tend to be illiquid and on the long term based). Banks can generally maintain its reserve or liquidity requirement, as it is required by the supervisory. Nevertheless, lack of liquidity can be remedied by raising deposit rate and effectively marketing deposits products, selling loans and borrowing from central banks or from other banks in the interbank lending market. The interbank lending market is a market in which banks extend loans to one another for a specified term. Most interbank loans are for maturities of one week or less, the majority being overnight (it is also called overnight rate)17.
The role of interbank plays an important function in helping a particular bank comply with its liquidity requirements. The interbank market allows…...

Similar Documents

Spanish Colonialization

...dadurch einsetzende Kolonialismus? Während die Spanier im Jahr 1992 das 500-jährige Jubiläum der Entdeckung Amerikas feierten, wurde diese in vielen lateinamerikanischen Staaten (früheren spanischen Kolonien) verflucht. Im Jahre 1998 verurteilte man Christoph Kolumbus in Honduras sogar zum Tode - wegen des größten Völkermordes in der Geschichte . Denn auch die Verbrechen an der indianischen Bevölkerung wiegen schwer.. Warum wird der Kolonialismus gefeiert? Amerika machte Spanien zur reichsten und mächtigsten europäischen Nation des 16. Jahrhunderts. Aus den vier Kolonien Nueva Espana (Mittelamerika, Karibik und Florida), Nueva Granada (Kolumbien, Venezuela und Ecuador), Peru (Peru und Bolivien) und La Plata (Argentinien, Chile, Paraguay und Urugay) kamen zahlreiche bisher unbekannte Güter wie Kartoffeln, Tabak, Kakao, Zuckerrohr, Tomaten und Mais nach Europa. Vor allem die Kartoffel sollte sich als wertvoller Ersatz für Getreide erweisen , wie unter anderem auch Friedrich II. von Preußen bemerkte und so die Nahrungsversorgung seiner Bevölkerung stabilisierte. Nicht nur für den Vatikan war die Bekehrung der indigenen Bevölkerung zum Christentum ein wichtiger Punkt. In der religiösen Gesellschaft jener Zeit galt es so viele Seelen wie möglich vor dem Fegefeuer zu bewahren. Von der Bekehrung profitierten vor allem die Missionare, die sich dadurch nämlich selber von Gott begünstigt glaubten. Angehörige des niederen Adels hatten in Spanien einen sehr eingeschränten Spielraum, so......

Words: 1084 - Pages: 5

Business

...International Operations Management The new role of WTO as a World trade court 1957 : GATT General Agreement on Tariff and trade 23 countries only when Gatt was created. A club of countries dominated by US. Major discussions on tariff reductions : KENNEDY ROUND NIXON ROUND Try to reduce the tariff among countries. 1990 : URUGAY ROUND Decision to convert GATT Into a more formal organzation 1995 : creation of WTO = World Trade Organization 125 countries Involved in four new fields : Financial services Telecommunications Shipping Business Services China becomes a member in 2001 Russia becomes a member in 2011 Today 154 countries which report over 97% of world trade Some outsiders : NORTH KOREA WTO : Two groups of countries Faborable to free trade Attracted by protectionism Free trade theory and deregulation * Free trade theory : Countries who think that global production will increase if countries do not interfere directly to affect trade. * Deregulation policy : Removal of government interference Ex : USA air transportation Protectionism and infant-industry policy * Protectionism : Government restrictions on imports that frequently give direct or indirect subsidies to industries to enable them to complete with foreign production * Infant-industry policy : An emerging industry should be guaranteed o large share of the domestic market until it becomes efficient enought to complete against imports...

Words: 4400 - Pages: 18

Tales of Demons and Gods 78 - Chapter 78 Dec 08, 2016 | Susan Alexander Kane | Adobe Photoshop Lightroom CC 3.4 modded apk