Indirectly, some of the value of this work lies in highlighting the Central Bank’s
accommodative monetary policy that has been driving Argentina’s economic recovery
and credit boom arising in an inflationary environment. Therefore, in order to have
profitable and sustainable earnings, Argentine banks have not only to adjust their
operating costs to inflation but also to better manage risk and leverage. Furthermore,
such analysis may help governments correct market failures and take actions that
monitor banking sector environment more effectively. This may prove useful in
preventing or mitigating future episodes of bank crises.