By Vinod Sreeharsha
Argentina Banking Sector: Walk the line
Argentine banks have so far shrugged off the ill effects of increasing government heavy-handedness. How they withstand a darkening economic climate remains to be seen
When Argentina’s president, Cristina
Fernández de Kirchner, sacked central bank governor
Martin Redrado more than two years ago for not following her
orders to transfer reserves to the Treasury, she intended for
his successor to take a more active, interventionist role.
Mercedes Marcó del Pont, Redrado’s
replacement, had previously espoused a view of broadening the
bank’s remit – one of the reasons she was
picked for the job by Fernández de Kirchner. As she
assumed her new role, she continued to say that in public.
A central bank official who joined around the same time said
then that Marcó del Pont would "have a more active role
than prior leaders did" and that during her tenure she would
pursue the "politics of economic development with social
To many, that sounded more appropriate for a development
bank than a central bank, and private bank executives...
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