Uruguay | The Uruguayan financial system in times of pandemic. Trust, the greatest asset.

The Uruguayan Financial System is healthy despite having gone through the worst months in recent history in terms of activity and employment. The quick reaction of the CB with timely measures to avoid the rupture of the payment chain allowed it to overcome these difficulties and to maintain a comfortable capital surplus.

Key points

• Key points:
• Confidence continues to be the greatest asset of the Uruguayan Financial System.
• Deposits in pesos suffered a shock in March when the COVID19 broke out, but they recovered in the following months, while those denominated in dollars did not stop growing.
• Non-resident deposits show a recovery since the fourth quarter of 2019.
• Credit to the private sector shows erratic dynamics after a relative stagnation in 2019.
• Digitalization will change the future of many industries, but it will be essential in the financial system where such transformation was accelerated by the irruption of COVID19.

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