Intro -- Contents -- I. INTRODUCTION -- II. THE FRAMEWORK FOR ASSESSING THE BANKING SECTOR: LONG-TERM TRENDS AND SHORT- TERM DEVELOPMENTS -- III. ASSESSING THE SOUNDNESS OF THE BANKING SECTOR -- IV. SUMMARY AND CONCLUSION -- BIBLIOGRAPHY.

This paper studies how Uruguay's regulatory framework was gradually strengthened to address shortcomings identified during the 2002-03 crisis, to align with international standards and, more recently, to deal with cyclical pressures resulting in an acceleration of bank lending. In particular,...