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Morgan Stanley Sees Argentina Poised for Latin America’s Fastest Banking Growth

The bank points to low credit penetration with a sizable, bankable middle class, conditioning the outlook on a more constructive policy backdrop.

Overview

  • Morgan Stanley’s client report, cited by Argentine media on Oct. 27, lays out a conditional projection for a prolonged credit expansion.
  • Analysts say bank lending stagnated for roughly two decades due to weak macroeconomic policies, leaving significant room for recovery.
  • The firm highlights low financial penetration, well‑capitalized banks, and consumer capacity as key enablers of a lending upturn.
  • About 61% of Argentines fall into middle or high income versus 46% in Brazil and around 30% in Mexico, Peru, and Colombia, which favors bancarization.
  • The gap between wealth and current credit use presents openings for new loan products and broader financial inclusion, dependent on sustained macro stability.