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Banks in Argentina and Mexico See 2026 Recovery, Warn on Liquidity and Rules

Banking leaders say the 2026 outlook relies on liquidity fixes in Argentina plus predictable rules in Mexico.

Overview

  • Argentine bank executives expect credit to resume next year and delinquency to ease after a difficult third quarter driven by pre-election uncertainty, tighter policy and rising arrears.
  • Signs of stabilization emerged in the fourth quarter as bond prices recovered and interest rates fell, though banks caution that morosity will take longer to normalize.
  • ADEBA’s Francisco Gismondi says banks hold sufficient capital but face tightening liquidity and the absence of a long-term peso curve, limiting durable lending.
  • Market participants emphasize macro stability and legal certainty to mobilize large household savings and rebuild the capital market after decades of distrust.
  • Mexico’s ABM projects growth above 1% in 2026 and above 2% in 2027, expects infrastructure projects to start, and urges clear, stable rules and stronger rule of law, expressing confidence in nominee Ernestina Godoy.