Argentina’s banking industry continues to endure volatile economic conditions, which have been exacerbated by the pandemic. The economy is gradually recovering after a contraction of almost 10% in gross domestic product in 2020, but at an uneven pace amid intermittent lockdowns and a slow vaccination rollout.
During 2020, despite increasing provisions due to the pandemic and implementation of international standards, banks generated profitability in real terms on the back of low funding costs and holdings in central bank securities and associated instruments, according to S&P Global.
