To Hell and Back — Crisis Management in a Dollarized Economy: The Case of Uruguay

Brun, Julio de; Licandro, Gerardo

doi:10.1057/9780230380257_7

Cited by 9 publications

(5 citation statements)

References 2 publications

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“…7 7 Other studies that also analyze the effects of the dot‐com crisis (e.g., Forbes & Rigobon, 2002; Fry‐McKibbin et al, 2014; Herwarth Kohn & Valls Pereira, 2017; Jung & Maderitsch, 2014; Syllignakis & Kouretas, 2011) and the impact of the 2002 Argentinian crisis (e.g., Ciccarelli & Rebucci, 2007; Collins & Gavron, 2005; De Brun & Licandro, 2006; Fry‐McKibbin et al, 2014; Kenourgios & Padhi, 2012), find evidence of contagion to a greater or lesser extent. …”

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The contagion phenomena of the Brexit process on main stock markets

Escribano

Iñiguez

2020

Int. J Fin Econ

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This paper studies the impact of the Brexit process in the main global financial markets by investigating the effect of financial contagion between series of stock index returns. The importance of the United Kingdom, not only at the European level but also at the international level, is the main reason for developing this analysis. We study the response on global financial markets to the Brexit process during the period that covers January 1, 2016 to November 30, 2018. We apply joint tests of contagion where the contagion channels are the conditional correlation, the coskewness and the covolatility between the United Kingdom as a source of contagion and the remaining recipient markets. Our results reveal financial contagion on the main European and international economies consistent with the effect of the Brexit referendum results and the subsequent increasing uncertainty.

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confidence: 99%

The contagion phenomena of the Brexit process on main stock markets

Escribano

Iñiguez

2020

Int. J Fin Econ

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“…In fact, in a scenario of banking distress, depositors have an incentive to convert their deposits into cash and transfer them abroad. This behaviour was appreciated during the Uruguayan crisis of 2002 or the effects the Mexican crises of 1994 had in the Argentinian banks (De Brun and Gerardo 2005).…”

Section: Resultsmentioning

confidence: 99%

Bank Risk Determinants in Latin America

Martínez-Malvar

Baselga-Pascual

2020

Risks

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Systemic Banking crises are a recurrent phenomenon that affects society, and there is a need for a better understanding of the risk factors to support prudential regulation and reduce unnecessary risk intake in the financial system. This paper examines the main bank risk determinants in Latin America. The period analysed covers the timespan from 1999 to 2013, including the systemic banking crisis episodes in Argentina (2001–2003) and Uruguay (2002–2005). We apply a new data-driven comparable methodology to classify and select commercial banks from the sample. We study bank risk proxied by the Z-score. We use the system-GMM estimator as our main empirical analysis method. According to our results, well capitalized, liquid, and traditional commercial banks are less risky. We perform robustness tests by applying OLS, and the results resemble our original model.

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“…A visible characteristic of Uruguay's public debt is its extremely high degree of dollarization-now as well as before the 2003 debt restructuring. This long-standing willingness of the public sector to run a massive currency mismatch has had repercussions throughout the local financial system and remains one of its main sources of fragility (Licandro and Licandro 2003;de Brun and Licandro 2006). A critical step toward increasing the presence of domestic currency in the financial system and in capital markets is the development of a yield curve for sovereign instruments in domestic currency, which is to be used as a benchmark for the introduction of private sector securities likewise denominated in local currency, with the potential start of a market for derivative products.…”

Section: Recent Developments In the Government Bond Marketmentioning

confidence: 99%

Bond Markets in Latin America

Borensztein

Cowan

Eichengreen³

et al. 2008

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The first comprehensive examination of the importance of local bond market development in Latin America, with conceptual and comparative assessments, case studies of six countries, and new, unique data sets. Developing local bond markets is high on the policy agenda of Latin America. Bond markets are an essential component of a well-functioning financial market. Facilitating the efforts of public and private borrowers to issue domestic-currency-denominated, long-term, fixed-rate bonds insulates them from the rollover and balance sheet risks that have been central elements in past financial crises. In addition, a robust bond market is a way for nonfinancial firms to retain their capacity to borrow when the banking system grows reluctant to lend. Latin American bond markets are growing, and may even approach a “big bang”-like surge, although significant challenges remain. This first comprehensive examination of the importance of local bond market development in Latin America provides conceptual and comparative assessments, case studies of six countries, surveys of firms and investors, and a cross-country economic analysis of the determinants of bond market development. The book's case studies of Argentina, Brazil, Chile, Colombia, Mexico, and Uruguay, written by country experts, follow a common methodology, with each offering a history of that country's bond market development, a comprehensive and unique data set on both private and public bond markets, surveys of firms and investors, and (in many chapters) firm-level analysis. A Web appendix makes available the unique data sets, including results of specially designed surveys of firms and investors participants, used in the book's studies. ContributorsCamila Aguilar, Patrick Bolton, Eduardo Borensztein, Matías Braun, Ignacio Briones, Mauricio Cárdenas, Andre L. Carvalhal da Silva, Sara G. Castellanos, Kevin Cowan, Julio de Brun, Barry Eichengreen, Roque B. Fernández, Xavier Freixas, Néstor Gandelman, Herman Kamil, Ricardo P. C. Leal, Lorenza Martínez, Marcela Meléndez, Ugo Panizza, Sergio Pernice, Arturo C. Porzecanski, Natalia Salazar, Jorge Streb

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To Hell and Back — Crisis Management in a Dollarized Economy: The Case of Uruguay

Cited by 9 publications

References 2 publications

The contagion phenomena of the Brexit process on main stock markets

The contagion phenomena of the Brexit process on main stock markets

Bank Risk Determinants in Latin America

Bond Markets in Latin America

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