Private entities organized as banks or finance companies and duly authorized by the Central Bank may operate in the market with no restrictions on foreign capital. O The full range of traditional banking services is available, without restrictions for foreign investors. Offshore operations receive an extensive tax exemption.
Specific legislation protects bank secrecy.
This law modernized the Uruguayan financial system, allowing the formation of finance companies, offshore banking and the installation of new banks. In addition, it established strict standards regarding bank secrecy. The Uruguayan financial system operates through public and private entities. The BROU is the government commercial bank and also operates as a development bank for industrial and farming activities. The BHU gives promotional loans under mortgage guarantees for the construction or purchase of housing.