The return of post-election financial calm has reopened a new roadmap for governments and banks. The group’s requests are as follows: Government will lift monetary tightening more quickly In order to restore liquidity to the system, he promoted this system from August (before the election) to obtain lower interest rates and Redesigning credit growthbecame stagnant two months ago.
In the first of the two Board of Central Bank Supervisors (BCRA); Santiago Bausiri asked representatives of public and private organizations, which will be closed this Friday.It will be eased by monetary tightening.” and provide more predictable conditions for the development of the financial system, without stifling intermediation, while achieving positive real interest rates.
In that sense, They not only asked the organization to lower the floor of pesos that must be kept with the central bank.has been set at a record high of 53.5%, but the current method of calculating these reserves has also been reviewed, and in recent weeks has been changed from a monthly average to a daily calculation, albeit with some flexibility.
he Diego Rivas, CEO of Banco Galicia“It’s producing a lot of system distortion. we have It has significantly worsened the customer experience.”. In that sense, he explained as follows: “We are a bank that will be available on July 24, but we are currently facing daily reserve issues, so “We cannot accept deposits after 4pm.”
Meanwhile, Daniel Tirado, Governor of Bank of Nations, agreed to the request and used the opportunity to explain that one of the biggest risks to public bodies is Lack of transformation into a public limited company, efforts blocked by the judiciary. Tirado asserted that 12% of his portfolio was in an unusual situation where “corporate financing was inadequate, essentially due to organizational issues.”
“The problem is not the people; Bank of Nations’ organization is at risk And it is imperative that we move forward. “This is due to government-mandated changes,” he asserted.
Another issue affecting the evolution of trust as a driver of recovery is the blackberries, Although this amount has increased this year, it is still at a moderate level for the system, in the view of bankers. Regarding this point, Mr. Rivas pointed out that: “First of all, users were used to raising their own funds, and the fees were settled by inflation, but today that is no longer the case. Individuals had to start understanding the changes in the economy. Some of the subsidies were also abolished, the capacity in people’s pockets was reduced. And finally, we got a lot.” Interest rate volatility It is aimed at short-term profits and is a product of the pre-election situation. ”
In this sense, bankers emphasized the importance of maintaining financial stability “to minimize market volatility and encourage foreign investment.” Rivas stressed the need for the country to keep interest rates above inflation. “Argentina is “The long history of storage liquefaction” As a result, the very short-term deposit base has declined. “Our deposits are transactional and the fixed period is less than 45 days,” he explained.
Both bankers spoke of the need for a uniform regulatory framework for all financial players, including fintech companies. On the other hand, Mr. Tirado emphasized the following roles:l Banco Nation as a bridge between traditional banking and the fintech world; To expand access to credit while seeking a level playing field for these players within the system. “It’s not about stopping innovation, but rather that once a company reaches a certain size, the rules become equal,” Rivas similarly said.
Mr. Tirado expressed support for this initiative. central bank open bankingemphasized the need for balanced regulation and fair compensation mechanisms between different actors.
One of the issues that emerged as a constraint on credit was tax pressure. At this point, speakers talked about the weight of both gross income and local, city, and check taxes. “It was thought to be temporary, but it has consolidated and today it is distorting the financial system.”Alternatively, it could foster informality,” they warned.
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