Wednesday, March 13, 2019
Banking sector performance.
Banks were one of the few sectors that performed well in 2018, aided by monetary tightening and the subsequent high interest rate on Central Bank (BCRA) securities. Peso depreciation also yielded windfall gains, owing to banks’ holdings of foreign currency-denominated assets. By contrast, credit to the private sector declined in real terms, as high interest rates, falling real incomes, rising unemployment and a poor economic outlook discouraged borrowing.