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Central banking supervision challenges in Uruguay Flashcards | StudBud
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Central banking supervision challenges in Uruguay
Central banking supervision challenges in Uruguay
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StudBud Administration
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#thekidneyfromsydney #finance #uruguay
Flashcards
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Questions
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Answers
1
What is a key issue in supervising fintech growth?
Banning high-risk fintech platforms
Monitoring regulatory compliance in new product
Prioritizing traditional banks over fintech
Encouraging unregulated innovation
2
How can Uruguay promote financial inclusion responsibly?
Mandating universal loan approval
Expanding access with sound regulation
Lowering all lending standards
Prioritizing fintech over traditional banking
3
How can Uruguay address risks from cryptocurrencies?
Establishing a robust regulatory framework
Allowing unrestricted cryptocurrency use
Taxing all cryptocurrency transactions heavily
Replacing traditional currency with crypto
4
Why should ESG risks be included in central bank evaluations?
To reduce emphasis on traditional risk
To shift focus from short-term economic goal
To monitor their impact on financial stability
To avoid regulation in environmentally risky sectors
5
What is a key challenge for Uruguay's central bank in international compliance?
Adjusting to Basel III regulations
Strengthening domestic monetary policy
Reducing cross-border banking standards
Enforcing stricter foreign exchange rules
6
What is a key goal of central bank supervision over liquidity management?
Ensuring short-term market stability
Eliminating reserve requirements entirely
Encouraging excessive interbank lending
Increasing reliance on foreign loans
7
What strengthens Uruguay’s anti-money laundering (AML) framework?
Improving cross-border transaction reporting
Limiting the monitoring of high-risk sectors
Increasing penalties for minor infractions
Relaxing financial transparency rules
8
Which entity supervises banks in Uruguay?
Central Bank of Uruguay
Financial Ombudsman
National Treasury
Ministry of Finance
9
What is a priority for banks to address rising cyber threats?
Limiting reliance on digital services
Relying on government cybersecurity agencies
Strengthening cybersecurity protocols
Focusing only on client-side protections
10
What helps central banks supervise systemic risks effectively?
Eliminating risk-weighted capital measures
Reducing regulatory scope for large banks
Conducting regular stress tests
Avoiding focus on interconnected risks
11
What approach helps manage non-performing loans (NPLs) effectively?
Strengthening credit risk assessment
Offering blanket loan forgiveness
Selling NPLs to third-party investors
Ignoring low-performing sectors
12
How should central banks address the shadow banking sector?
Encouraging unregulated lending
Prioritizing only traditional banks
Ignoring the shadow banking risks
Expanding regulatory oversight
13
Why are capital buffers critical for financial institutions?
To allow lower reserve requirements
To reduce regulatory scrutiny during downturns
To encourage excessive lending in growth periods
To absorb economic shocks and ensure stability
