Financial policy
Financial Stability
To promote the stability of the financial system, the Central Bank exercises its powers of prudential regulation and supervision of institutions, operates a deposit insurance system and performs the function of providing liquidity of last resort.
It also monitors the financial system and the payment system to identify possible systemic risks and adopt actions aimed at preventing or mitigating them.
In this context, through the Financial Stability Report, the BCRA informs the public of the situation of the financial system and publishes individual and aggregated information on the state of financial institutions in this same section of the website, under the title “Financial System”.
The Central Bank (…) carries out a deposit insurance system and fulfills the function of providing liquidity of last resort.
Development and efficiency
The BCRA also uses its regulation to promote the development of the financial system. For example, in 2016 the Unit of Purchasing Value, in order to offer the system a useful instrument for granting long-term credit, in particular mortgage credit.
In addition, the BCRA promotes the efficiency of the system, permanently reviewing its regulation to allow savings in the costs of the entities that result in a higher return to depositors and/or a lower cost of credit.
Among other measures, there are regulations that enable the digitization of some operations, such as the opening of accounts in a non-face-to-face manner, or the electronic deposit of checks. More information in Action taken.
The Central Bank also promotes transparency and competition in the financial system.
Since April 2016, the entity has published information on the prices of the main banking products in the main banks (see the BCRA and vos sections). Comparison of Commissions) so that interested people or customers can compare them. Since 2017, the BCRA’s Debtors’ Central Bank has been sharing information on the credit behavior of individuals and companies that receive credit, not only when it is negative but also when it is positive, so that individuals and companies that exhibit good credit behavior can benefit from a greater supply of credit and better conditions.
It promotes transparency and competition in the financial system.
Finally, the Central Bank carries out different activities to promote innovation in the financial industry, such as the Financial Innovation Hackathon 2016 and a broad agenda of activities to promote Financial Innovation promoted in 2017.
Financial Inclusion
The BCRA understands financial inclusion as access to and use of a wide range of financial services, provided in a sustainable and responsible manner.
The bank is directing a large part of its actions towards achieving financial inclusion. Thus, regulatory measures aimed at reducing the costs of entities – in particular the digitization of some operations – have an inclusion purpose because they have the potential to make it possible to develop sustainable business models aimed at serving lower-income segments of the population.
Likewise, the Electronic Means of Payment agenda promoted by the BCRA is a fundamental pillar to achieve greater financial inclusion, since the expansion of the network for accepting these payments is key to promoting their use by those who are in a state of precarious banking, that is, without using their bank accounts or their associated means of payment.
The Central Bank also seeks to extend the coverage of the financial system. In June 2016 it simplified the authorization process for the opening of branches, reduced building requirements for areas with lower population density, allowed all banks to use mobile branches and created the figure of automated dependency.
Finally, the BCRA carries out Financial Education and User Protection actions, in order to encourage the responsible provision and use of financial services.
The BCRA understands financial inclusion as access to and use of a wide range of financial services, provided in a sustainable and responsible manner.