I. Composition of the Banking Sector The banking system in Argentina is highly concentrated. In 2015 the top three banks controlled more than 43% of all commercial banking assets. The top ten banks control more than 77% of banking assets. This reflects a long-term trend of consolidation beginning in the 1990s when banking reforms were introduced and continued following the 2001 crisis. Today only 78 banks remain in operation, compared to 200 in the mid-1990s. Market entry is made difficult by both evolving regulation and the concentrated power of large, established banks. Argentine banks have expanded their presences in recent years. In mid-2016 a total 4,507 branches were in operation across the nation. Still, this ranks below the other …show more content…
By far the largest bank in Argentina is state-owned Banco de la Nación Argentina, which controls 27.6% of banking assets. The two next largest domestic banks are the privately-owned Banco de Galicia y Buenos Aires, controlling 7.9%, and state-owned Banco de la Provincia de Buenos Aires, controlling 7.8%. Several large foreign banks also operate in Argentina. These include the Banco Santander Rio (controlling 8% of assets), BBVA Banco Francés (5.6% of assets), and HSBC (3.2%). Some foreign banks have reduced, or have indicated plans to reduce, their presences in Argentina. In 2016, Citibank agreed to sell off most of its assets to Banco Rio Santander, citing desires to cut costs. Despite such moves, Argentina may appear attractive to foreign banks seeking to expand in the Latin American market. The soundness and profitability of Argentine banks make them potential takeover targets for international banks, assuming a friendly regulatory climate.
II. State of the Banking Sector The banking sector has sound fundamentals. Banks are highly capitalized. As of July 2017, the BCRA reports that banks have a capital compliance rate (qualified capital/ risk-weighted assets) of 14.7%. This exceeds the requirements by 79%. Banks have been significantly over the capital requirements for the previous five years. Liquidity indicators are strong. The broad liquidity ratio in July was 45.4%, while the liquidity ratio excluding BCRA securities stood at 29.6%
Argentina is located in South America-34.36 latitude and -58.27 longitude. It is located between Chile and Uruguay. Argentina is the second largest country in South America. Its population is 43,431,866 people. Argentina has 2,780,400 amount square kilometers in total. The; coastline is 4,989 kilometer's, water is 43,710 square kilometers, lowest point for elevation is-105 meters, and highest elevation is 6,960 meter's. The top exports are soybean meal, corn, soybean oil, cars, delivery trucks, and gases. The top export destinations are Brazil, China, the United States, and Germany. They use the Argentine peso.
The banking industry has undergone major upheaval in recent years, largely due to the lingering recessionary environment and increased regulatory environment. Many banks have failed in the face of such tough environmental conditions. These conditions
The number of spoken languages in Argentina is at least 40, although Spanish is dominant. According to 2010 national census and some other researches, there are about 41 million Spanish speakers in the country(almost the entire population). There are around one million Levantine Arabic speakers in Argentina, as a result of immigration from the Middle East, mostly from Lebanon, Syria, and Palestine. Argentina has more than 1,500,000 Italian speakers; which is the second most spoken language in the nation. Italian immigration effectively began in the middle of the 19th century and made a permanent impact on the pronunciation and created the language what Argentinians call Castilian, which sounds more like Italian than Spanish. Some Indian languages are also used in the inner country, such as Araucano, Guarani or Quichua.
Now, many of these banking groups are owned by foreign investors, despite attempted safeguards. This ownership has provided investors leverage and influence over the actions of the government because the government owes an exorbitant amount to these banks (Daniel Lederman). The same argument can be made about the United States’ government. This influence can be seen across the board as many decisions now seem to favor only a select few, forgetting about the ramifications for the many.
It is surrounded by Chile in the Northwest, Paraguay in the North and Uruguay in the Northeast. It is also surrounded by water from the west is the Pacific ocean and from the east is the Atlantic ocean. Argentina has a total area of 1,068,296 square miles. Argentina is the second largest nation in South America, the biggest nation in South America is Brazil. The main population of Argentina are mainly spanish and Italian, which is about 85% of the
The country of Argentina is one rich in history and complex in culture. It is located in the far reaches of South America, inhabiting 1,068,302 square miles of the southeastern region of the continent, and over 39,000,000 people populate it. Those people make up the identity of a culture, a society of Argentinians that inhabit a unique place amongst not only the Latin-American region, but also the world as a whole.
The capital of Argentina is Buenos Aires, with a population of approximatively forty-one to forty-five thousand as of 2013. President Cristina Fernandez de Kirchner has been in office since 2007. The official language of Argentina is Spanish. Argentina is a massive South American nation with terrain encompassing the Andes Mountains (Spain, n.d.).
very similar to that of the U.S. however the GDP per capita is significantly lower in Argentina than in the U.S.
BMO has over 960 branches and over 2000 ATMs across Canada, and over 600 branches and 1,300 ATMs across the U.S. They have total assets of $681 billion as of April 30, 2016 and over 46,000 employees, serving more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, Wealth Management and BMO Capital Markets. BMO simplifies financial matters for individuals, as well as small, medium-sized and mid-market businesses to better understand their needs, and guide them to the best solutions. They offer a wide variety of Personal and Commercial banking products including loans, mortgages, investments, credit cards and insurance. They also provide extensive financial advisory services to customers at the branches, through the ATM network, over the Internet or by phone.
Banco Popular or Popular Inc. is one of the most prominent financial service provider across the US. It was established in the United States in 1961. The company has its strong presence with 50 branches across 3 US states –New York, New Jersey and Florida. It is ranked amongst the top 50 banks in the U.S.A. by assets. Banco Popular has more than 1.5 Million business and individual clients.
The languages they use in Argentina are Spanish, italian, french, german, and English. Argentina’s primary language
Extensive research has determined that the banking industry is in an unstable state. The industry’s profits have
Argentina is the second largest nation in Lain America and boasts the largest Jewish community in the region (200,000 of its 35 million people). From an open door policy of immigration to the harboring of Nazi war criminals, Argentina's Jews have faced period of peaceful coexistence and periods of intense anti-Semitism.
Geographic position has played a key role in shaping the economy of Argentina today. Located in South America, bordered by the South Atlantic Ocean, Argentina is situated in a prime location for a boosting economy. Argentina’s geographic location and promotion of innovation has attributed to advancements in areas like trade, population density, innovation and overall economic growth. The temperate climate and its proximity to major water ways allowed for its agricultural exports to thrive and be a key component in its economic development. This had allowed for Argentina’s economy to be able to expand its sectors and to have a great ride in production of other areas to further advance its economy.
Argentina is a country located on the south side of South America. It is bordered by the Andes in the west and the South Atlantic Ocean to the east, neighboring countries are Chile to the west, Bolivia and Paraguay to the north, and Brazil and Uruguay to the northeast. Argentina is the second largest country of South America after Brazil, and the 8th largest country in the world. Its total area is approximately 2.7 million km². Argentina claims a section of Antarctica but has agreed to temporarily stop sovereignty disputes in the region as a signatory to the Antarctic Treaty. Argentina also asserts claims to several South Atlantic islands controled by the United Kingdom. With a population of more than 42.1 million, Argentina ranks as the