IMF Staff Country Reports

Argentina: Financial Sector Assessment Program-Financial Sector Stability-Technical Note

Publication Date:

February 29, 2016

Electronic Access:

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Summary:

This paper provides technical analysis and detailed information underpinning the Financial Sector Assessment Program in Argentina. The implementation of stress tests is conceptually challenging in the Argentinean context, and the results must be interpreted with a high degree of caution. The stress tests examined the resilience of the Argentine banking system to solvency, liquidity, and contagion risks. These tests suggest that most banks are in a position to withstand substantial levels of stress while still phasing in capital requirements under Basel II, and credit risk is the most important vulnerability. Banks appeared resilient to market risk but less so to sovereign risks.

Series:

Country Report No. 2016/065

Subject:

Banking Commercial banks Financial institutions Financial sector policy and analysis Financial services Insurance companies Liquidity stress testing Real interest rates Stress testing