Argentina: Financial Sector Assessment Program-Financial Safety Nets- Technical Note
IMF Staff Country Reports, February 29, 2016
Source details
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- Argentina: Financial Sector Assessment Program-Financial Safety Nets- Technical Note
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Bibliographic details
- Published: February 29, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498391962.002
Summary / Key findings
- The paper discusses the financial crisis management and crisis preparedness framework of Argentina.
- Argentina has a well-developed financial safety net that has provided timely support to stressed institutions, but the system could be further strengthened.
- The Banco Central de la República de Argentina (BCRA) facilities have not been tested, but they are well-designed to manage a major banking liquidity crisis.
- The BCRA should work with other supervisors to monitor potential risks outside its regulatory perimeter.
- The BCRA approach to supervision is risk-based and focuses on early supervisory action to address deficiencies, but the prompt correction framework could be enhanced.
BCRA facilities and crisis preparedness
- BCRA facilities have not been tested.
- Facilities are described as well-designed to manage a major banking liquidity crisis.
- Recommendation: strengthen coordination with other supervisors to monitor potential risks outside the BCRA regulatory perimeter.
Supervision and prompt corrective action
- BCRA supervision approach is risk-based.
- Focus is on early supervisory action to address deficiencies.
- The prompt correction framework could be enhanced.
Subjects and keywords
- Subject: Bank resolution, Bank resolution framework, Banking, Bridge bank, Deposit insurance, Financial crises, Systemic crises
- Keywords: address BCRA staff liability, Africa, Banco Suquía, bank assistance, Bank resolution, Bank resolution framework, BCRA approach, BCRA authority, BCRA charter, BCRA exercises macro, BCRA personnel bylaw, Bridge bank, CAMELBIG rating, capital base, CR, Deposit insurance, Global, ISCR, la Nación Argentina, recovery and resolution plans, resolution process, Systemic crises