Banking
From The Report: Argentina 2018
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After the adoption of more market-friendly policies, Argentina’s banking sector has gradually begun to show signs of a return to positive growth. Since 2015 the government has been undertaking a number of reforms aimed at boosting investor confidence in the sector, increasing financial intermediation and improving the overall health of the financial services industry. At the same time, banks have experienced strong loan portfolio increases within corporate and consumer segments, fees and procedures have been eased for users, and digital services are on the rise. While reforms engendered since 2015 are assumed to be paying off, the financial services industry and the entire Argentine economy are still enduring a period of structural reforms. This chapter contains interviews with Javier González Fraga, President, Banco Nación; and Eduardo Escasany, President, Grupo Financiero Galicia.

Articles from this Chapter

Overview

Back in the game: Reforms aim to boost financial inclusion and rebuild market trust
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After the adoption of more market-friendly policies, Argentina’s banking sector has gradually begun to show signs of a return to positive growth. Since 2015 the government has been undertaking a number of reforms aimed at boosting investor confidence in the sector, increasing financial intermediation and improving the overall health of the financial services industry. At the same time, banks have experienced strong loan portfolio increases within corporate and consumer segments, fees and procedures…

Interview

Confident country: Javier González Fraga, President, Banco Nación, on re-establishing trust in the banking system
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Interview :Javier González Fraga How does Argentina’s current monetary policy impact the performance of the banking sector? Javier González Fraga: Lowering inflation is one of the government’s key priorities. However, this is difficult to achieve, due to the distortions created under previous administrations. Argentina is transitioning from being a closed economy to an open market economy. Given the country’s strong fiscal deficit, the government has decided not to introduce large…

Analysis

Homing in: The mortgage segment has recorded strong growth following the introduction of reforms to make borrowing more attractive
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In 2001 an economic depression and the Argentine peso being pegged to the US dollar led to the country defaulting on sovereign debt by approximately $93bn, which prevented Argentina from accessing international markets and resulted in the cancellation of IMF loans. The subsequent crisis deeply impacted credit penetration, with credit to the private sector as a percentage of GDP dropping from a 10-year peak of 24.8% in 1999 to less than 10% in 2004. The resulting loss in confidence and increased regulation…

Interview

Growing together: Eduardo Escasany, Chairman, Grupo Financiero Galicia, on fostering more sustainable sector activities
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Interview : Eduardo Escasany What factors are contributing to the confidence and trust that is being rebuilt in the banking sector? EDUARDO ESCASANY: In recent decades Argentina has gone through various episodes of crises and hyperinflation, both of which left the banking system in a difficult position. This undoubtedly had a significant impact on the level of trust and confidence customers had in their banking institutions. Trust is slow-growing and is based on three fundamental pillars: government…

Analysis

Better together: Local market ripe for further mergers and acquisition activity
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The Argentine financial sector has gone through extensive structural change in the last decades in response to a variety of factors, including financial crises, debt defaults, privatisations and regulatory reforms. As in other emerging markets, the number of financial institutions in operation has declined significantly from 723 in 1977 to 110 in 2000. The 2001 economic crisis and subsequent intervention measures resulted in a number of entities – including large multinational groups such as France-based…