Systems of Banking and Production in Argentina
Vctor Fernndez, Carolina Lauxmann and Julio Tealdo
b) Endogeneity and Exogeneity in Capital Ownership ( ...continuation )

Figure 6. Relative Average Participation (December of Every Year)
Over the Total of Deposits Received by the Financial Banking System
By Origin of Capital Ownership (1991-1995; 1996-2001; 2002-2010)

Source: Prepared by the authors, based on information from the BCRA, Financial Institutions Report.



Still, it is important to point out that although banks of national origin have recovered their position within the financial system to a certain extent as a result of changes initiated starting in 2002, the structure of the Argentinean financial banking systems in terms of types of institutions that comprise it has not experienced a great deal of change (Figure 7).

Figure 7. Relative Average Participation (December of Every Year) of Different
Types of Financial Institutions of the Banking System
By Origin of Capital Ownership (1991-1995; 1996-2001; 2002-2010)

Source: Prepared by the authors, based on information from the BCRA, Financial Institutions Report.

Local banks of foreign capital and institutional branches from abroad,9 which represented 39.41% of banking institutions from 1996-2001, stayed in second place within the financial system following the convertibility regime collapse, although their participation fell to 33.21%. Private national banking maintained sector leadership, slightly increasing its participation by approximately 4%. Public banking continued in third place in the banking system, and was relegated to this position due to concentration and foreignization. However, we must not forget the relevant role that public banking began to take on starting in 2002 in deposit share, with values reaching nearly 45% of total funds received, and for loans, they extended approximately 34% of the total credits given in the financial banking system (Figures 5 and 6).

Now, have these morphological changes brought about any modification in the reproductive dynamics of the post-crisis financial banking system?

9 Local banks of foreign capitals are those who stock shares were bought by foreign banks, and these foreign bank branches are established banking companies in the country that depend directly on their foreign headquarters.