Argentine Banks: Stretching the muscles to grow

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Argentine Banks: Stretching the muscles to grow

September 2016

Banking penetration in Argentina is low.  As of today, deposits account for nearly 20% of GDP and the depth of banking intermediation has been erratic over time in response to macroeconomic cycles.  The most important increase in banking penetration took place in the 90's when the ratio of deposits to GDP rallied from 15% to 35%.  The last decade cannot precisely be labeled as a "winning decade" for banking penetration.