This peer review examines two topics relevant for financial stability in Argentina: the macroprudential policy framework and the framework for crisis management and resolution. The review focuses on the steps taken by the Argentine authorities to implement reforms in these areas.
The peer review finds that some progress has been made in recent years on both topics. In particular, work is ongoing to enhance data collection and systemic risk analysis; a new draft bill provides a more robust framework for financial market infrastructure and powers to temporarily stay early termination rights; and recovery planning is underway for some domestic systemically important banks (D-SIBs).
Notwithstanding this progress, the review concludes that there is additional work to be done:
- On the macroprudential policy framework, this involves strengthening the institutional set-up for financial stability within the Central Bank of the Republic of Argentina (BCRA) in terms of mandate, internal structures and resources; establishing a coordination forum for authorities to discuss regulatory issues, share information and analysis on systemic risks and related macroprudential policies, and develop crisis preparedness protocols; developing a framework for the identification and collection of data for systemic risk analysis; and refining stress tests as well as publishing more information on them.
- On crisis management and resolution, this involves incorporating additional elements of the FSB’s Key Attributes of Effective Resolution Regimes for Financial Institutions in the resolution regime; strengthening the operational independence of the resolution function within the BCRA and establishing mechanisms for cooperation and information sharing with domestic and foreign authorities on resolution; enhancing resolution funding arrangements; and further developing recovery and resolution planning for all D-SIBs.
The peer review sets out recommendations to the Argentine authorities in order to address these issues.