Argentina's Banking Sector Suffers as Election Battle Leaves High Morosity and Low Credit Offerings

Argentine banks have reported their worst results since the pandemic due to high morosity and restrictive lending policies. Banks such as Naranja X and Banco Supervielle have limited new loan offerings to protect their balance sheets. The government's strict monetary policy, including high interest rates and high reserve requirements, has affected the banking sector and the economy. The situation could extend into 2026, a crucial time for President Javier Milei's economic growth plans.