The International Monetary Fund demanded that Javier Milei’s government establish a regulatory framework so that fintech companies like Marcos Galperin’s Mercado Pago compete on equal terms against banks.
In its latest staff report, the agency assures that the Government plans to modify the regulatory frameworks “to guarantee a level playing field between Fintech companies and traditional banking institutions.”
This is a long-standing claim by Argentine banks, which have been warning about the regulatory advantages that Galperin’s company has and which partly explain its sustained growth.
The latest example of this was the recent decision of the Central Bank to enable Mercado Pago to capture deposits from the public, transfer them to the financial institution that pays the best and keep that return. All without complying with the same regulations that banks must comply with.
The Central Bank allows Mercado Pago to speculate with users’ silver without submitting to bank controls
The Fund’s warning about the need for regulation was taken by the banks as a recognition of their claim for regulatory and tax asymmetries with fintech companies, especially with Galperin’s company, which also enjoys the benefits of the knowledge law.
Banking sector sources maintain that the only genuine way to level the playing field is for Mercado Pago to acquire a banking license, as in Mexico.
In any case, the banks suspect that the Government’s commitment to the IMF will end in regulation “tailored to Galperin.” Sources claim that this would be some “cosmetic” requirements that allow Mercado Pago to continue raising funds from the public and offer banking services without having to have a banking license.
