What the study found
The study found that the European banking crises of 1931 reached Argentina’s banking sector through European banks with branches in the country. These banks appear to have transmitted financial strain from their parent institutions to their Argentine affiliates, which then faced significant deposit withdrawals and changes in balance sheet strategies.
Why the authors say this matters
The authors say this matters because it highlights the broader consequences of global financial integration, especially for developing economies. The study suggests that the ripple effects of the European 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 using balance sheets, financial statements, and archival evidence. They focused on the role of European banks operating in Argentina as channels for the transmission of crisis effects.
What worked and what didn't
The findings indicate that as parent banks in Europe came under strain, their Argentine affiliates experienced significant deposit withdrawals. The affiliates were also forced to revise their balance sheet strategies, which the abstract says heightened vulnerability in Argentina’s banking system and may have prolonged recessionary pressures and changed lending practices.
What to keep in mind
The abstract does not provide detailed limitations. It also notes that the study focuses on Argentina as a case study, so its findings are specific to that setting and to the 1931 crisis.
Key points
- European banking crises in 1931 affected Argentina through European banks with local branches.
- Argentine affiliates of these banks faced significant deposit withdrawals.
- The banks revised their balance sheet strategies in response to strain from parent banks in Europe.
- The abstract says the crisis ripple effects may have prolonged recessionary pressures in Argentina and altered lending practices.
- The study uses balance sheets, financial statements, and archival evidence.
Disclosure
- Research title:
- European banking crisis spread to Argentina through bank branches
- Authors:
- Sebastián Álvarez, Gianandrea Nodari
- Institutions:
- Adolfo Ibáñez University, University of Geneva
- Publication date:
- 2026-03-09
- OpenAlex record:
- View
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