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 shocks but also by internal issues within the banking system. The tension between internal and external convertibility led to a financial drain. Lender-of-last-resort actions were needed to resolve the crisis, leading to the creation of a central bank with long-term consequences for inflation and financial health. This crisis has parallels with recent developing-country crises, highlighting the importance of institutional design in monetary and banking systems.