Parallel of the financial system

The conformation of the financial system of a country allows us to know who the actors are and their degree of contribution and how they are regulated in the same way.

Let’s analyze the conformation of the Uruguayan and Colombian financial system in order to understand their functions differentiations and similarities.

Colombian financial system

• It is made up of credit establishments, financial services companies, capitalization companies, insurance entities and insurance intermediaries.

• It only has one public bank and is monitored by the financial superintendence of Colombia. Colombian GDP is concentrated in 13 financial conglomerates with a 96% share of it.

• Of the 13 conglomerates, 5 has a national parent company and 8 abroad.

• The health and pension system is one of the richest in Colombia and at the same time one of the most irregular and not very transparent.

• The power is concentrated in very few hands and its system is not considered the most transparent and legal in Latin America.

• The Colombian export stronghold is Central America with more than 69% of the country’s exports.

Uruguayan financial system

• It is made up of 2 public banks and 11 private banks, non-bank entities and insurance companies.

• It is regulated by and supervised by the Uruguayan central bank through the Financial Services Supervisor.

• Uruguayan growth has been maintained since 2006 to date for its stock market is of little development compared to the other nations of Latin America.

• The Uruguayan stock market is controlled by the montevideo stock exchange (BVM) and the electronic stock exchange (Bevsa).

• In addition, the financial market is characterized by its high degree of concentration in official banking.

• Uruguay has a stable, transparent, well regulated and supervised financial system.

• There are no limitations on the outflow or entry of capital or control of changes in operations in foreign currency.

• In Uruguay, the coverage of the pension system reaches 8 out of 10 people and is made up of a mixed system.