Clear that at this point, they have also played their role systems Regulation and banking supervision. Why in the region there were no cases of bankruptcies of financial institutions or entities affected by the toxic assets on their balance sheets. licking through. Read more from Gavin Baker, New York City to gain a more clear picture of the situation. To achieve the current situation for the Latin American banking system, without a doubt, there are no shortcuts and Latin American banking has given precise steps for its consolidation. The health of these banks is that they don’t have to go through the stage that are facing banks of developed economies (mainly United States and Europe), of having to clean up their balance sheets. And this healthy situation of banking enables them to devote himself to that which gives them the reason for it is to generate financial intermediation to bolster growth and development of the economies. According to the information which includes the Central Bank of the Republic of Argentina, credit to the private sector amounts in Latin America to 34% in terms of the gross domestic product (GDP), while that ratio in emerging Europe is 59%, in emerging Asia 86% and in developed countries reaches 131%. The low level of credit to the private sector in terms of GDP indicates the potential for growth that it tends, and hence the potential for expansion of banking in Latin America. The level of banking in the region continues to grow although it is still insufficient.
On the other hand, the improvement in the social situation of the Latin American countries, which will be consolidated after the crisis, will increase the demand for banking products. The credit growth in Latin American economies will be supported in the development of economies and the expansion of demand and credit supply. The growth of the economy implies the need to finance the increased activity both by the side of the consumer side of the investment by logic.