In a recent resolution, the Secretary of Industry and Commerce, under the Ministry of Economy, acting on the recommendation of the National Commission for the Defense of Competition (CNDC), has called for the revision of two key laws that grant the Bank of the Province of Buenos Aires (BAPRO) exclusivity in handling salary payments for municipal employees in the Province of Buenos Aires. The move is aimed at reintroducing competition in the banking services sector.
The laws in question, particularly Law 14.881, enacted on December 29, 2016, mandate that all public, autonomous, and decentralized organizations within the province, as well as subsidized private educational institutions and municipalities, use BAPRO for salary disbursements. The law requires these entities to open Salary Accounts for their employees at the state-owned bank.
Additionally, the BAPRO charter, established by Decree-Law PBA 9434/79, reiterates that municipalities must process salary payments through the bank by opening common savings accounts for their employees.
The CNDC has raised concerns that these regulations limit competition by granting BAPRO an unfair advantage over both public and private financial institutions. The lack of competition in this segment, the Commission argues, prevents the emergence of better banking service offers, such as lower costs and enhanced benefits, for the contracting entities and their employees.
To remedy this situation, the CNDC has recommended amending the Organic Charter of BAPRO and revising Law 14.881 to eliminate the competitive restrictions in the salary payment process for municipal employees and other subsidized organizations. The Commission’s recommendation aims to foster a more competitive environment, allowing employees and entities to benefit from a wider range of banking options and improved service conditions.
