Since the Executive Branch´s announcement of an amendment to Section 23 of Executive Order 905/02, the BCRA will adjust the regulatory framework applicable to foreign currency financing granted by financial institutions.
The regulation expands the permitted uses of foreign currency deposits in order to increase the financing available for private investment. Channeling domestic savings through the banking system expands credit supply, boost economic activity, productivity, and employment, and reduce dependency on external financing.
In bimonetary economies¹, deeper financial intermediation helps reduce the imbalance between domestic savings and private investment. Therefore, implementation of the measure will be accompanied by a prudential framework designed to ensure that the expansion of financing develops in a sustainable manner, safeguarding the solvency and liquidity of the financial system while limiting the risks associated with potential currency mismatches among borrowers.
To that end, the BCRA will establish that financing from foreign currency deposits and granted to customers not covered by the uses previously permitted under the regulation may not exceed, as a whole, 15% of foreign currency deposits held at each financial institution.
In addition, such financing will be subject to stricter prudential treatment:
– In terms of capital, the minimum capital requirement will be equivalent to 125% of that applicable to other financing of comparable characteristics.
– For the purposes of limits to credit exposure, this financing will be calculated as 1.25 times the exposure that would otherwise apply if it were not subject to this specific treatment.
– Institutions must assess the repayment capacity of borrowers under exchange-rate variation scenarios of different magnitude.
These measures seek to strengthen coverage of the risks taken by financial institutions and establish more restrictive exposure limits for the financing under the new regime.
The BCRA will continue to encourage a sound and deep financial system, able to channel savings into credit and contribute to the development of economic activity.
1 | View Box 3: Domestic savings, bank credit, and private investment; p. 38, Monetary Policy Report, June 2026
