Uruguay | The performance of the Uruguayan financial system over the past year

Summary

Uruguay continues to show a solid, liquid financial system with a good quality loan portfolio that translates into low levels of non-performing loans. Compared to the rest of the region, the penetration levels of the financial system are mid-range, which gives it a high growth potential for the medium term.

Key points

• Key points:
• In terms of GDP, credit stock growth in 2023 was nearly 1pp, recovering ground after the declines of the previous two years and reaching around 25.6% of GDP.
• Private sector deposits, which represent 95% of the total system, showed a slight increase of 0.9% YoY in peso terms, explained by the 14.9% YoY growth of deposits denominated in local currency, while foreign currency deposits contracted by 3.8% YoY.
• The deceleration of inflation and the good transmission of monetary policy to commercial rates results in a greater participation of the peso over foreign currency.

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