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Commercial and banking credit network in Uruguay

Author

Listed:
  • Andrea Barón

    (Banco Central del Uruguay)

  • María Victoria Landaberry

    (Banco Central del Uruguay)

  • Rodrigo Lluberas

    (Banco Central del Uruguay)

  • Jorge Ponce

    (Banco Central del Uruguay)

Abstract

We build a commercial credit network, identify the most central economic sectors in terms of commercial debt, and provide a more complete idea of total indebtedness and financial interlinks between firms and banks in Uruguay. "Commerce", "manufacturing" and "transportation, storage, and communication" are the most central sectors in the commercial credit network. In a stress testing exercise, "transport, communication and storage" and "hotels and restaurants" are deeply affected in all cases. These sectors are the most exposed in terms of contagion. "Commerce" and "manufacturing" are central and have the highest level of indebtedness, but they have a large amount of liquid assets, that allows them to overcome shocks coming from other sectors.

Suggested Citation

  • Andrea Barón & María Victoria Landaberry & Rodrigo Lluberas & Jorge Ponce, 2020. "Commercial and banking credit network in Uruguay," Documentos de trabajo 2020006, Banco Central del Uruguay.
    • Handle: RePEc:bku:doctra:2020006
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    File URL: https://www.bcu.gub.uy/Estadisticas-e-Indicadores/Documentos%20de%20Trabajo/6.2020.pdf
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    Cited by:

    1. Li, Xiao-Lin & Wang, Lijuan & Kong, Dongmin, 2023. "Macro-prudential policy and systemic risk of real estate firms: Evidence from China," Finance Research Letters, Elsevier, vol. 58(PC).

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    More about this item

    Keywords

    commercial credit network; financial interlinks; financial contagion; financial stability;
    All these keywords.

    JEL classification:

    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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