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European banking crisis spread to Argentine banks

Economics, Econometrics and Finance research
Preyes, Wikimedia Commons, CC BY-SA 4.0 · CC BY-SA 4.0

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Research area:economics-policyeconomic-theory

What the study found

The study found that the European banking crises of 1931 reached Argentina through European banks with branches in the country. As parent banks in Europe came under strain, their Argentine affiliates experienced deposit withdrawals and changed their balance-sheet strategies.

Why the authors say this matters

The authors conclude that the study highlights the broader consequences of global financial integration. They also suggest that the ripple effects of the European banking crisis prolonged recessionary pressures in Argentina and altered lending practices long after the initial shock.

What the researchers tested

The researchers examined the repercussions of the 1931 European banking crises on Argentina’s banking sector. They used balance sheets, financial statements, and archival evidence to study the role of European banks with branches in Argentina as channels of transmission.

What worked and what didn't

The evidence indicates that European banks acted as conduits for transmitting financial instability to Argentina. Their Argentine affiliates saw significant deposit withdrawals and were forced to revise balance-sheet strategies, which increased vulnerability within the banking system.

What to keep in mind

The abstract does not describe detailed limitations or caveats. Its scope is focused on Argentina and on European banks operating there during the 1931 crisis.

Key points

  • European banks with branches in Argentina helped transmit the 1931 banking crisis.
  • Argentine affiliates experienced significant deposit withdrawals.
  • The affiliates revised their balance-sheet strategies in response to strain at parent banks in Europe.
  • The authors say the crisis had ripple effects that prolonged recessionary pressures in Argentina.
  • The study uses balance sheets, financial statements, and archival evidence.

Disclosure

Research title:
European banking crisis spread to Argentine banks
Authors:
Sebastián Álvarez, Gianandrea Nodari
Institutions:
Adolfo Ibáñez University, University of Geneva
Publication date:
2026-03-09
DOI:
10.1017/s0968565026100146
OpenAlex record:
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Image credit:
Preyes, Wikimedia Commons, CC BY-SA 4.0
AI provenance: This post was generated by gpt-5.4-mini (OpenAI). The original authors did not write or review this post.

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