Argentina: Banks set for broader funding opportunities

Redrado: banks on recovery path

Argentina’s central bank is considering allowing hybrid securities to be accepted as tier 1 capital on a bank’s balance sheet. If approved, the measure will facilitate banks’ access to the international capital markets. This, in turn, will be a big step forward in the recovery process for local banks, following the financial crisis in 2001/02. Martin Redrado, president of the central bank, says that the move will mean that securities such as perpetuals – hybrids that are close to equity – will be considered as tier 1 capital.