Impacts of deregulation on the stability and transparency of the Argentine financial system

Abstract

In this paper we analyze the current structure of the Argentine financial system and its regime of public supervision, emphasizing its main sources of systemic risk. In particular, we identify the deficiencies in regulation that allow for arbitrage opportunities to elude norms and controls and characterize the most significant entities and activities of the so-called «shadow banking» system at the domestic level. In this context, we review the deregulation measures implemented by the Central Bank since December 2015 and explore their potential impact on financial stability and transparency. Finally, we suggest some policy recommendations to mitigate financial fragility.