There was a meeting with entities after emergency measures, this time headed by the central dome. New criticisms of the current lace system, which enhanced high volatility in rates.
After a first meeting, held last Thursday and in which more than 200 representatives of financial entities via Zoom participated, This Tuesday the Central Bank (BCRA) saw the faces with private banks. In the meeting they discussed the recent measures arranged by the highest monetary authority that strongly limit the liquidity of the banks and force them to render the lace daily. In fact, after these changes, it was seen A huge volatility in interest rates, especially in the stock market wheel.
Scope He was able to reconstruct that this second meeting was much more limited and only the great players in the sector participated. Unlike the first, which was commanded by Darío Stefanellimain manager of regulatory applications of the BCRA, On this occasion, the entity’s president himself, Santiago Bausili. The official listened to the complaints of the entities about the impact of the latest measures on the market and transmitted to the representatives of main banks that will evaluate corrections to lace regulationsaccording to this means of sources with direct knowledge of what was discussed.
What happened was that last Thursday the central arranged not only to raise the lace again, but also changed the way to calculate them in pesos. From this Monday The monthly average is no longer used (which allowed to compensate for the minimum cash based on liquidity needs), It is required by the entire lace every business day.
This generated, among other mismatches, that the bond rate rose with force along the wheel on Monday and Tuesday and collapse on the closure. The explanation of the City is clear: at some time the banks stop taking deposits or funds and a excess liquidity momentary.
Since the economic team arranged these changes, There was a lot of noise In financial entities. The main complaints they released were that These measures generate a lot of volatility in rates and complicate the credit policy of banks. They wielded that the new regulation greatly increases the requirement in a market that has no liquidity, with the obligation to measure lace every day, and force entities to buy public titles that banks at this time do not demand (in reference to the emergency tender that the treasure carried out on Monday of a letter that banks can use to remunerate a part of the minimum cash).
Laces: the contingency measures taken by the entities
On Tuesday, as in the previous day, around 16 the hound to one day collapsed up to 1.7% TNA, after having reached an intradiary maximum of 45% TNA. According to PPI, a stock market entity, the reasons were very similar to those of Monday. The new BCRA regulations, which requires calculating lace on a daily base instead of monthly averages of daily balances, It forces banks to administer their liquidity more anticipated, closing positions earlier than usual.
But this not only affects banks, as it was known, the managing societies of the FCI Money Market are also advancing their cutting schedules between 15:30 and 16 and 16 They leave the last hour of the wheel practically without placement alternatives.
Another important point is that banking entities are at risk of intradiary barefoot since The BCRA liquidity window operates only in the Repo de Siopel wheel, between 17 and 17:30.
Source: Ambito
