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