Argentina's banking system faced a crisis during the Great Depression due to bad assets and the suspension of gold convertibility. The crisis was not just caused by external factors but also by internal issues within the banking system. The tension between internal and external convertibility led to a bailout by the state, resulting in the creation of a central bank with long-term consequences for inflation and financial health. This historical event has parallels with recent developing-country crises, highlighting the importance of designing effective monetary and banking systems.