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Banks seek federal agenda with focus on reducing asymmetries with fintechs and cleaning up puts

Banks seek federal agenda with focus on reducing asymmetries with fintechs and cleaning up puts
Banks seek federal agenda with focus on reducing asymmetries with fintechs and cleaning up puts

During the third federal congress Association of Public and Private Banks of the Argentine Republic (ABAPPRA), appointed the Bank of Corrientes as President of the recently created Federal Banking Commission. In the search for an agenda that includes all entities, They agreed on 16 points where the elimination of asymmetric treatment towards fintechs and the clearing of puts appear as central points.

The event was held in the City of Corrientes under the motto “The future is now”. There, the participating entities agreed on a series that seek ratify the commitment of the association with regional financial development and integration.

In this sense, one of the central conclusions has to do with “correct the tax and regulatory asymmetries that currently affect federal banking vis-à-vis fintechs”.

According to ABAPPRA, the banks that make up the financial system in 2023 They paid ten times more national and provincial taxes than fintechs. “Banks do not enjoy tax rate reductions and we are the main taxpayers in municipal jurisdictions where fintechs do not pay taxes,” they argue in the statement.

Besides, Banks claim to employ nearly 100,000 workers across the countryfar exceeding the use of fintechs.

However, they recognize the potential of fintechs to contribute to financial inclusion. That is why they consider it necessary establish a regulatory framework that guarantees fair and transparent competition among all actors in the financial system.

Graduate Marcelo Mazzonexecutive director of ABAPPRA, reinforces this idea: “We pay ten times more taxes, we hire three times more staff, We are being treated at a disadvantage with fintechs and we expect a more equal treatment to grant more credit with better conditions,” he said in dialogue with Ambit.

In turn, he explains that ABAPPRA “is quite unhappy with the delays in the interoperable QR”, a claim that is addressed to the company Mercado Pago: “We urge Market Payment not to hinder interoperability with other wallets in QR payments and to facilitate the use of all payment methods issued by banks in face-to-face and online commerce.”

In the statement, Banks require a specific regulatory framework for provincial public banking, “considering its role as financial agent of the provincial states” and its social mandate “oriented towards regional development and promotion.”

Thus, from ABAPPRA they propose a special regulatory treatment for net paying entities with a participation less than 1% of the private deposits of the financial system, allowing them to partially compute the balances of their Treasuries as reserves.This temporary measure would compensate for the deterioration in the real value of banknotes in circulation.“, they understand from the entity.

On the other hand, ABAPPRA, in its note entitled “Federal Banking’s commitment to regional development”, reiterates the commitment to work together with the BCRA to find a definitive solution to the “puts”, issued as collateral for public debt.

After the last meeting with the banks, Minister Luis Caputo and the head of the BCRA Santiago Bausili They agreed to coordinate individually with each bank the stock of this instrument calculated at $16 billion.

Regarding mortgage credit, they recognize that access to decent housing “It is essential for the well-being of the population”. “These types of challenges require a joint effort by public and private actors. The elimination of taxes and stamp duty on mortgage contracts, together with the improvement of urban planning and the regulatory framework, are essential to facilitate access to housing.” So far, an off-the-record survey shows the level of demand generated through the return of UVA credits, but foreclosures remain at marginal levels.

In line with what has been expressed, the Chamber of Banks is available to coordinate actions that seek to “optimize the functioning of organisms“that regulate land use and property records, “streamlining processes and reducing costs.”

In closing, ABAPPRA declared its commitment to the environmental sustainability agendasocial and governance (ESG): “We will set clear and predictable deadlines to offset our carbon footprint and will deepen the implementation of policies to promote the financing of projects with a positive environmental impact,” the entity highlights.

In August, the entity will carry out together with Latin American Federation of Banks (FELABAN), the second International Congress on Sustainability and Financial Inclusion in the City of Buenos Aires. There, these points will be discussed in depth and progress will be made on the Building a modern federal banksustainable and inclusive for the development of Argentina.

Source: Ambito

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