Here is one option using \bordermatrix
that provides what you're after:

\documentclass{article}
\usepackage{mathtools}
\begin{document}
\[
\phantom{(17') \rightarrow\hspace{\arraycolsep}}% For correct horizontal spacing within display math \[ ... \]
\underbrace{
\bordermatrix{\hspace{-\arraycolsep} &
\overbrace{\hphantom{\dfrac{1-s_R}{\delta}}}^{x} &
\overbrace{\hphantom{- \dfrac{\frac{\lambda-1}{\lambda}}{\rho + \frac{n}{\eta} - n}}}^{c} \cr
\hspace{-\arraycolsep}\mathllap{(17') \rightarrow} & \dfrac{n}{\eta \cdot \delta} & \dfrac{1}{\lambda} \cr
\hspace{-\arraycolsep}\mathllap{(16') \rightarrow} & \dfrac{1-s_R}{\delta} & - \dfrac{\frac{\lambda-1}{\lambda}}{\rho + \frac{n}{\eta} - n}
}
}_{\text{coefficient matrix $\Delta$}}
\cdot
\begin{pmatrix}
\widetilde{x} \\
\widetilde{c}
\end{pmatrix} =
\begin{pmatrix}
1 \\ 0
\end{pmatrix}
\]
\end{document}
\overbrace
s are stretched to the widest element in each column using \hphantom
, while care is taken to remove the left-most row indices from the \underbrace
yet restoring their horizontal space outside of the \bordermatrix
construction.
For having left braces to identify/mark the rows, you could use the following:

\[
\phantom{(17') \left\{\vphantom{\dfrac{n}{\eta \cdot \delta}}\right.\hspace{\dimexpr\arraycolsep-\nulldelimiterspace}}% For correct horizontal spacing within display math \[ ... \]
\underbrace{
\bordermatrix{\hspace{-\arraycolsep} &
\overbrace{\hphantom{\dfrac{1-s_R}{\delta}}}^{x} &
\overbrace{\hphantom{- \dfrac{\frac{\lambda-1}{\lambda}}{\rho + \frac{n}{\eta} - n}}}^{c} \cr
\hspace{-\arraycolsep}\mathllap{(17') \left\{\vphantom{\dfrac{n}{\eta \cdot \delta}}\right.\kern-\nulldelimiterspace} &
\dfrac{n}{\eta \cdot \delta} & \dfrac{1}{\lambda} \cr
\hspace{-\arraycolsep}\mathllap{(16') \left\{\vphantom{- \dfrac{\frac{\lambda-1}{\lambda}}{\rho + \frac{n}{\eta} - n}}\right.\kern-\nulldelimiterspace} &
\dfrac{1-s_R}{\delta} & - \dfrac{\frac{\lambda-1}{\lambda}}{\rho + \frac{n}{\eta} - n}
}
}_{\text{coefficient matrix $\Delta$}}
\cdot
\begin{pmatrix}
\widetilde{x} \\
\widetilde{c}
\end{pmatrix} =
\begin{pmatrix}
1 \\ 0
\end{pmatrix}
\]