Argentina's banking sector just posted its weakest quarterly performance since COVID-19 hit. The dramatic downturn comes as President Javier Milei doubles down on aggressive currency stabilization measures ahead of crucial midterm elections.

The timing raises eyebrows. Banks are bleeding while the administration races to demonstrate monetary control before voters head to the polls. Milei's shock therapy approach to taming inflation appears to be squeezing financial institutions hard—profit margins compressed, lending activity chilled, balance sheets under stress.

Whether this short-term pain translates into long-term currency stability remains the billion-dollar question. For now, Argentina's banks are paying the price for the president's high-stakes monetary gamble.