Featured Product

    IMF Report Examines Developments in Banking Sector in Argentina

    April 05, 2019

    IMF published a staff report highlighting that the banking system in Argentina remains resilient. The report, which is part of the third review under the stand-by arrangement with Argentina, shows that loan provisioning is at high levels, with provisions for nonperforming loans (NPLs) at 87%. The assessment highlights that, despite a generally resilient banking system, there is room to strengthen supervisory practices.

    In the banking sector, the system-wide tier 1 capital ratio is at 14.2%. Liquidity is ample due to high remunerated and unremunerated reserve requirements and a shrinking loan portfolio, with the liquid assets to deposits ratio rising to more than 50%. The banking regulator BCRA conducts regular stress tests on the banking system, yet the credit risk models are suited to assess exposure of large universal banks to shocks. However, work is underway to fine-tune stress testing models to better customize capital and liquidity requirements for smaller institutions, taking into account their funding structure and activities. These smaller institutions are non-systemic, account for 1.1% of the banking sector assets, and have a very small share of retail deposits (relying instead on wholesale funding and term deposits). Private-sector NPLs are rising but were only 3% in December, mostly concentrated in revolving credit to households and loans to construction firms. Mortgage defaults also remain at very low levels (0.3%).

    The report notes that revisions to the BCRA charter would strengthen independence and operational autonomy of the central bank. The authorities have made good progress in designing amendments to the Central Bank Law, which establishes price stability as the first and fundamental mandate of BCRA and allows remuneration of commercial bank accounts held at the BCRA. The objectives of the new charter are to improve governance, internal oversight, and decision-making structures and to commit the central bank to the international standards of transparency and accountability. 

     

    Related Link: Staff Report

    Keywords: Americas, Argentina, Banking, NPLs, Stress Testing, Regulatory Capital, Credit Risk, BCRA, IMF

    Featured Experts
    Related Articles
    News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News
    News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News
    News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News
    News

    ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies

    The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)

    September 13, 2022 WebPage Regulatory News
    News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8514